Energy Decision #03 Demand Ratchets Explained

If you run a plant, hospital, school system, municipality, or large commercial facility and you’ve ever wondered why your billed demand is higher than what the meter shows, this episode is for you. In Part 1 on demand ratchets, we break down what they are, how they actually work on your bill, and why one short peak can inflate your costs for months. By the end, you’ll know when ratchets hurt you, what metrics to watch, and how to start treating them as a manage‑able cost instead of an untouchable mystery.