Do You Know Your Business’ Load Profile?

Understanding Load Factor Can Help Your Business Save on Energy Costs.

2 MIN READ

Running a small business means keeping countless plates spinning — payroll, inventory, staffing, marketing, customer service, and everything in between. With so much on your plate, your energy bill probably isn’t something you spend much time thinking about. Most owners glance at the total due and move on.

But how your business uses electricity matters just as much as how much you use. Understanding that pattern — your load profile — can reveal hidden opportunities to save money. And asking AEP Energy to calculate and explain your load profile is one of the simplest, smartest steps you can take toward lowering your energy costs.

What is Load Factor?

Load factor measures how steadily your business uses electricity. It compares your average demand to your peak demand over a billing period.

Load Factor = Average Demand / Peak Demand

• A high load factor means your usage is steady and consistent.
• A low load factor means you experience big spikes in demand.

Those spikes matter — and they can cost you more than you think.

Why Your Load Profile Matters More Than You Think

Many small businesses assume their energy bill is driven mostly by the price per kilowatt‑hour. But for a lot of commercial customers, demand‑related charges make up a significant portion of the total cost. Demand charges are based on the highest 15‑minute usage spike in your billing cycle. That means one hectic customer rush, one equipment startup, or one overloaded moment can set the demand charge you pay for the entire month!

Your load profile helps you understand:

• When those peaks happen
• What is causing them
• How they’re impacting your bill
• What you can do to control or reduce them

Once you see the full picture, you can make smarter decisions that directly affect your bottom line.

How AEP Energy Can Help

Energy costs can feel unpredictable — and small businesses often feel like they have little control. But understanding your load profile changes that. It gives you insight, clarity, and the ability to make strategic adjustments without sacrificing productivity. With the right information from an AEP Energy’s small business consultant, you can take meaningful steps to manage demand, reduce waste, and choose an energy plan that supports predictable budgeting. To learn more, click here.

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