Ratchet Charges

Ratchet charges (also called Demand Charges) are based on your 12 month billing history, and is the demand rate used to calculate your charges. The purpose of Billed Demand charges is to reflect peak seasonal demands. Ratchet charges reflect either the maximum demand during the previous eleven months or the maximum demand during the previous summer months, or 100% of the current month's use — whichever is highest.