Definitions for "Contract Demand"
Keywords:  enmax, val, kva, demand, daily
A minimum demand charge based on transformer capacity necessary to serve a customer's measurable demand.
shall mean the maximum demand for which the consumer has entered into an agreement with the Board.
Some electricity rates require the utility to establish a Contract Demand for each individual meter. The Contract Demand is the capacity in kW that the utility has judged the customer might use at peak conditions. Customers are often billed for contract demand indirectly, such as, billed kW = the maximum of 50% of contract demand or current month's metered demand.