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How FortisBC demand charges work

FortisBC bills Commercial (RS 21) and Large Commercial (RS 30) customers a monthly demand charge on billing demand, which can be set by a peak from any of the previous 11 months. This guide sets out the published rates, the 40 kW threshold and how billing demand is defined.

Rates effective January 1, 2026; check FortisBC for current rates. NeoTechX is not affiliated with FortisBC.

Business rates at a glance

FortisBC commercial rates, effective January 1, 2026, before discounts, riders and taxes
Rate scheduleApplies toCustomer chargeDemand chargeEnergy charge
Small Commercial Service (RS 20)up to 40 kW$59.51 per two monthsNone12.934 ¢/kWh
Commercial Service (RS 21)over 40 kW and under 500 kW$71.57 per month$15.06/kW above 40 kW9.147 ¢/kWh
Large Commercial Service, primary (RS 30)contract demand 500 kVA or more$1,252.43 per month$12.18/kVA7.384 ¢/kWh
Commercial Service, secondary, time of use (RS 22A)under 500 kW, secondary service$21.32 per monthNoneon-peak 19.559 ¢/kWh, off-peak 6.339 ¢/kWh
Large Commercial Service, primary, time of use (RS 32)contract demand 500 kVA or more$2,959.53 per monthNoneseasonal on-peak and off-peak rates

How is billing demand set?

For Commercial Service (RS 21) and Large Commercial Service, primary (RS 30), billing demand is the greatest of 25% of Contract Demand, the highest demand in the current month, and 75% of the highest demand in the previous 11 months. RS 21 bills in kW; RS 30 bills in kVA.

The 75% rule means a lower peak does not show in full straight away. If last winter's peak was 300 kW, billing demand stays at 225 kW or more until that month leaves the 11-month window, even if this month's peak is lower.

The 40 kW threshold on RS 21

RS 21 charges $15.06 per kW only on billing demand above the first 40 kW. A site with a 100 kW billing demand pays the demand charge on 60 kW. If FortisBC chooses to measure demand in kVA, the threshold is 45 kVA and the rate is $13.53 per kVA.

Time-of-use rates have no demand charge

Rate Schedules 22A, 23A, 32 and 33 price energy by season and time of day instead. On RS 32, for example:

FortisBC RS 32 energy rates by season, ¢/kWh, effective January 1, 2026
SeasonOn-peakOff-peak
Winter (November to February)30.0516.127
Summer (July and August)28.8514.768
Shoulder (all other months)6.9203.651

On-peak hours differ by schedule and season, so a load-shifting estimate on these rates needs your own interval data.

Transmission service

Large Commercial Service, transmission (RS 31) applies to contract demand of 5,000 kVA or more. It bills a wires charge of $6.29 per kVA of billing demand plus a power supply charge of $4.39 per kVA, with billing demand floors of 80% of Contract Demand or 80% of the highest demand in the previous 11 months.

Power factor

Customers are expected to keep power factor at or above 90% lagging. Below that, the bill may be increased by an adjustment for low power factor, and FortisBC may require corrective equipment. No credit is given for leading power factor. Measuring demand in kVA instead of kW is at FortisBC's option.

Farms and irrigation

Irrigation and Drainage (RS 60) runs from April 1 to October 31 at 10.054 ¢/kWh, with no demand charge; RS 61 is its time-of-use version.

BC Hydro customers: see how BC Hydro demand charges work.

Frequently asked questions

What is the FortisBC demand charge for Commercial Service?

Under Rate Schedule 21, rates effective January 1, 2026, FortisBC bills $15.06 per kW of billing demand above 40 kW per month, before discounts and taxes. The first 40 kW carry no demand charge. If FortisBC measures demand in kVA, the charge is $13.53 per kVA above 45 kVA.

Does FortisBC have a demand ratchet?

Yes. For Rate Schedules 21 and 30, billing demand is the greatest of 25% of Contract Demand, the highest demand in the current month, and 75% of the highest demand in the previous 11 months. A single high peak can therefore set a floor on the demand charge for the next 11 months.

Do FortisBC time-of-use rates have a demand charge?

No. Rate Schedules 22A, 23A, 32 and 33 bill energy by pricing period plus a customer charge, with no demand charge. On these rates, what matters is when energy is used, not the monthly peak.

Does FortisBC charge for low power factor?

Customers are expected to keep power factor at or above 90% lagging. Below that, the tariff says the bill may be increased by an adjustment for low power factor, and FortisBC may require corrective equipment. The tariff does not publish a surcharge table.

See what a kilowatt of peak is worth on your bill.

Tariff arithmetic on your own figure. Not a quote or a prediction.

Sources

  1. FortisBC Inc. Electric Tariff, rates effective January 1, 2026 (BCUC Orders G-265-25 and G-293-25): Rate Schedules 20 (R-20.1), 21 (R-21.1, R-21.2), 22A (R-22A.1), 30 (R-30.1), 31 (R-31.1), 32 (R-32.1) and 60 (R-60.1)
  2. FortisBC Inc. Electric Tariff, Terms and Conditions: definitions (TC-1 to TC-4) and section 9.4, Power Factor