What does capacity charge mean?

Created by Matt O'Donnell, Modified on Fri, 8 Sep, 2023 at 12:30 PM by Matt O'Donnell

Capacity Charge or also referred to as Demand Charge is the cost for the plant operation and maintenance in order to provide a constant supply of energy/chilled water to the consumers. The Demand Charge / Capacity Charge is distributed equally across the entire building in direct relation to the size of the relevant areas or unit sizes

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