Actual maximum demand is defined as:

• A. The highest load recorded over a specified time period.
• B. The average load over the same period.
• C. The minimum load observed.
• D. The instantaneous current at a peak hour.

Answer: (A)

Maximum demand is the highest load the system experiences within a defined time window. Utilities and equipment are sized and billed based on this peak value because it represents the worst-case power requirement during that period. It’s determined by monitoring the load over set intervals (for example, every 15, 30, or 60 minutes) and recording the largest value observed.

This is different from the average load, which smooths out peaks and reflects typical usage rather than the peak need. It’s also different from the minimum load, which is simply the smallest demand observed. And it’s not just the instantaneous current at a single moment, such as a momentary spike during a peak hour; it’s the largest value recorded across the entire specified interval.