This is the inverse of the diversity factor but preferred by some utilities.
[ MD = \sum (Individual\ Peak\ Demands \times Coincidence\ Factor) ] maximum demand calculation
A coincidence factor of 1.0 means everything peaks together. A factor of 0.8 means only 80% of the individual peaks occur at the same time. This method is more accurate when you have historical submeter data. This is the inverse of the diversity factor
Golden Rule:
kVA = kW / Power Factor. A low PF (e.g., 0.7) means your kVA demand is 43% higher than your kW demand. Golden Rule: kVA = kW / Power Factor
Pro Tip: Do not trust one day of data. A single anomaly (testing a backup generator, a heatwave) could set an unrealistic MD.
Once you calculate MD, the next step is active management. You want to lower the MD without stopping production.
Many grid codes penalize consumers who exceed their contracted MD (excess demand penalty, often 1.5x to 2x the normal rate).