Discussion
A consumer with a contract demand of 500 kVA and a 75 per cent ratchet that records only 300 kVA is billed for
Answer: C
Correct answer: 375 kVA
The ratchet sets a floor at 75 per cent of the contract demand: \[ 0.75 \times 500 = 375\ \mathrm{kVA}. \] Since the recorded 300 kVA is below that floor, the consumer is billed on 375. The clause exists because the utility has held 500 kVA of capacity available whether or not the consumer chose to use it.
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