Future ratchet excess calculator
Future ratchet excess
Price the demand floor above normal demand for each later month in which the ratchet remains active.
Extra future cost=n×max(0, r×Dpeak−Dnormal)×Demand rate
Calculator
Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.
Worked example
Given
- n = 8 month
- r = 0.75 ratio
- Dpeak = 620 kW
- Dnormal = 390 kW
- Demand rate = 12 $/kW/month
Extra future cost=8×max(0, 0.75×620−390)×12=7,200
Symbols and units
| Symbol | Meaning | Unit |
| Extra future cost | ratchet-related later charges | $ |
| n | remaining affected billing months | month |
| r | ratchet fraction | ratio |
| Dpeak | historical peak | kW |
| Dnormal | normal monthly demand | kW |
| Demand rate | monthly unit demand charge | $/kW/month |
Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.