Demand Charge

Demand Charge

A monthly or annual fee paid by a Buyer for a nominated, reserved peak or for the actual peak volume of gas taken in an hour or day in a given period. Thus a typical expression might be Dollars per thousand cubic feet of peak hourly capacity per month. Often used interchangeably with Capacity Charge although it can be argued that in strict logic Demand Charge should apply to a gas sale and Capacity Charge to a transportation arrangement.

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