What is the minimum demand requirement for an A-3A rate?

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The minimum demand requirement for an A-3A rate is 500KW. This requirement is typically put in place to ensure that the customers choosing this rate have a certain level of energy usage that justifies the pricing structure and benefits associated with it.

A rate like A-3A is often designed for larger commercial or industrial customers who have significant energy needs. The 500KW threshold indicates that the utility company expects a minimum level of energy consumption to provide the associated rate's benefits, including lower rates per kilowatt-hour as consumption increases. This aligns with utility practices aimed at optimizing energy distribution and managing demand effectively among varied customer classes.

Understanding the minimum demand requirement is crucial for businesses deciding on the appropriate rate structure, as it can influence their cost management and overall energy strategy.

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