Discussion
A site with a maximum demand of 800 kVA and an average demand of 320 kVA has a load factor of
Answer: B
Correct answer: 0.40
\[ \frac{320}{800} = 0.40. \] A load factor of 0.4 means the site is drawing on average less than half its maximum demand, so it is paying for capacity it rarely uses. Improving it by shifting or staggering loads reduces the demand charge without reducing consumption at all.
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