A peak electricity charge is a fee charged by a utility company based on the maximum kilowatt (kW) of electricity used during peak hours, rather than the total amount of electricity used (in kilowatt-hours (kWh)). Moreover, even if a facility can fully utilize its electricity resources during times when prices are lower, a brief spike in demand during peak hours can result in higher electricity bills for the entire month. Manufacturing plants, data centers, hotels, supermarkets, and office buildings often incur thousands of dollars in additional monthly charges due to brief surges in demand.