Load Factor (LF)

This term refers to the the energy load on a system as compared to its maximum or peak load for a given period. Load factor is most typically calculated on a monthly or annual basis. When a customer creates his maximum demand on the system, he will probably not continue to use electricity at that same level for the whole month, but will use it at different levels throughout the month. The extent of his use for the month as compared to his maximum use for that same month is called his "load factor". Load Factor is computed by dividing his kWh usage for the month by the product of the month's "peak" or maximum demand for him times the hours for the same period (730 for a month and 8,760 for a year).

Here is the formula: Load Factor = Month's kWh Usage / (Peak Demand or KW x 730)

So what is the difference between load factor and load profile? Load profile is not the same as Load Factor.

Load Profile

Load profile is a graph of the variation in the electrical over time. A load profile will vary according to customer type, (typical examples include residential, commercial and industrial), temperature and holiday seasons.