PJM Demand Charges - Questions on Fundamentals

Hey all, Favor to ask. I have been asked by my boss to identify "demand charges" in the example customer bill on the PJM website (http://www.pjm.com/markets-and-operations/billing-settlements-and-credit/msrs-reports-documentation/billing-example.aspx). As far as I can tell, the demand charges consist of those charged on a flat $/kw basis, including: (1) the NITS, (2)firm/non-firm P2P transmission service, (3) transmission enhancement services, (4) RPM auction and (5) locational reliability. The other charges on the PJM example bill--which I believe to be assessed on an hourly rate basis ($/kwh)--are not demand charges. Am I on the mark? Or are there others/different charges that should be characterized as demand charges? Thanks! RBR Submitted by Rossr on 11 October, 2016 - 15:58

1 answer

Points: 0

Sounds on the mark to me, though I would categorize non-flat $/kW charges as demand charges as well, so tiered blocks or time-of-use (on peak, off peak) $/kW charges. I see some line items with units like $/MW-day which I think would be demand charges as well. Ewilson on 20 October, 2016 - 06:39