Answer Posted / karthikeyan

"Load Factor" is an indicator of how steady an electrical
load is over time.

If your electric billing rate includes both an Energy (kWh)
and Demand (kW) charge, your load factor can be calculated
by the following formula:
L.F. (percent) = [(Total kWh)/(# Days in Bill Cycle x 24
hrs/day)]/[Peak kW Demand]
If your load factor is low, you should look for ways to
even out your electrical usage (i.e., shift energy
intensive processes to periods of otherwise low usage).
By increasing load factor, you will reduce the impact of
monthly demand (kW) charges on your bill.

LF = average demand / peak demand
for a given period of time.

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