Legal Definitions - peak demand

Definition: Peak demand refers to the point in time when the demand for a utility, such as electricity or water, is at its highest level during a specific period.

Example: During the summer months, when temperatures are high, people tend to use more air conditioning. This increased use of electricity leads to a peak demand for power during the hottest parts of the day.

Explanation: The example illustrates how peak demand occurs when there is a sudden increase in the usage of a utility. In this case, the demand for electricity increases due to the use of air conditioning during hot weather. This increased demand can put a strain on the power grid, which is why utility companies often encourage customers to conserve energy during peak demand periods.