Miscalculating your maximum demand is expensive. Underestimate it, and your circuit breakers will trip repeatedly, causing downtime. Overestimate it, and you will pay thousands of dollars in unnecessary demand charges every month.
"Leo, calculate the maximum demand. We need to size the main service and the transformer without overspending or blowing a fuse." The Concept: Probable vs. Possible maximum demand calculation
The method of calculation depends on the stage of the project (planning vs. operation). Miscalculating your maximum demand is expensive
$$MD = \sum (Individual Loads \times Demand Factor \times Diversity Factor)$$ causing downtime. Overestimate it
"They all run," Henderson insisted. "They all need power."
Miscalculating your maximum demand is expensive. Underestimate it, and your circuit breakers will trip repeatedly, causing downtime. Overestimate it, and you will pay thousands of dollars in unnecessary demand charges every month.
"Leo, calculate the maximum demand. We need to size the main service and the transformer without overspending or blowing a fuse." The Concept: Probable vs. Possible
The method of calculation depends on the stage of the project (planning vs. operation).
$$MD = \sum (Individual Loads \times Demand Factor \times Diversity Factor)$$
"They all run," Henderson insisted. "They all need power."