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What is the meaning of load factor?

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"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.
Another way of looking at load factor is:
LF = average demand / peak demand
for a given period of time.
Load factor is the total energy consumed in a period (kWh) over maximum power that can be delivered(kW) in to no of hours (h) in that period.
Load factor = Energy consumed (kWh)/ max power (kW) x No. of hours (h)
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