The average value of power or related quantity over a specified interval of time.
Demand is expressed in kilowatts.
Why demand is metered. Two classes of expenses determine the total cost of generating, transmitting, and distributing electric energy. In billing the individual consumer of electricity, the utility considers to what extent the total cost of supplying that consumer. This is determined by capital investment and to what extent it is determined by operation and maintenance expenses. Furnishing power to some consumers calls for a large capital investment by the utility.