What does the term 'electric demand' refer to?

The term 'electric demand' refers specifically to a customer's requirement for electrical supply. It encompasses the rate at which electricity is consumed at a given moment or over a specific period, often measured in kilowatts (kW). Understanding electric demand is crucial for utilities because it helps them predict load requirements and manage the electrical grid accordingly. Managing demand effectively ensures that there is enough energy supplied when needed and helps avoid outages or overloading the system.

In contrast to the correct interpretation, total energy consumed refers to cumulative usage over time rather than at a specific point or rate. Average monthly power usage, while it provides useful information about a customer’s overall consumption, does not capture the instantaneous demand. Total demand of all customers may sound pertinent, but it collectively assesses the demand across an entire customer base rather than focusing on an individual customer’s need for electrical supply. This distinction is important for utility companies in tailoring services and resources to meet individual customer needs effectively.