What is a daily demand charge?
A demand charge is a utility fee based on the maximum amount of energy a customer uses during a short period of time within a billing cycle. Nevada Power, a subsidiary company of NV Energy, is proposing to add a mandatory daily demand charge for its residential customers.
Under this plan, your electricity meter would be measured on a 15-minute cycle each day, and your bill will be based on the highest 15-minute period energy use during that day. For example, if your highest energy usage is from 6:45-7 PM on a day in July, the demand charge for that day will be based on this time, regardless of your usage during the rest of the day. This would be in addition to the basic service charge of $18.50 that customers already pay. This is something no other investor-owned utility (IOU) in the country currently does.