Running a small business means juggling a lot of moving parts — payroll, inventory, staffing, marketing, customer service. Your energy bill usually isn’t at the top of the list. Most owners glance at the “amount due” on their monthly bill and move on.
But how your business uses electricity matters just as much as how much you use, and understanding that pattern — your load profile — can unlock real savings. That’s why asking AEP Energy to calculate and explain your load profile is one of the smartest moves a small business can make.
What is Load Factor?
Load factor is a measure of how steadily a business – like yours – uses electricity. It’s the ratio of average to peak demand over a period, and comparing on‑peak vs off‑peak load factors shows whether consumption is concentrated during peak hours (low on‑peak load factor) or spread more evenly across off‑peak times (higher off‑peak load factor).
*On-Peak hours apply to all weekdays, except the legal holidays of New Year’s Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.
Why Load Profile Matters More Than You Think
Most small businesses assume their bill is driven by the price per kilowatt‑hour. But for many commercial customers, demand‑related charges can make up a big portion of the total cost.
Demand charges are based on the highest 15‑minute usage spike in your billing cycle. One busy lunch rush, one equipment startup, one overloaded moment — and you’re paying for that peak all month long.
Your load profile is the key to understanding:
How AEP Energy Can Help
Small businesses often feel powerless when it comes to energy costs. But understanding your load profile gives you insight, control, and the ability to make strategic decisions that reduce costs without sacrificing productivity.
based on your highest short‑term usage
tied to system‑wide peak demand
which rates and plans are best suited for your industry.
AEP Energy small business consultants provide education and tools to help your business manage demand and capacity. Contact us to calculate your load profile and take the first step in discovering savings.
