Load factor is the ratio of average electricity demand to the peak demand over a specific period. A higher load factor indicates that power use is more consistent, which makes the electric system more efficient. In Texas, understanding load factor helps businesses and utilities manage capacity planning and optimize energy costs, because wide fluctuations between average and peak demand can be expensive.
For example, a small office in Austin might have a high load factor if equipment and HVAC systems operate steadily throughout the day, while a restaurant that is only busy during lunch and dinner could have a low load factor. In regions like the Rio Grande Valley, seasonal differences—such as high air-conditioning use in summer—can also affect load factor.
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