In your electricity bill, the actual energy usage is calculated by multiplying the kilowatt hours (kWh) used by the energy rate. The only way to reduce your actual energy usage is by consuming less energy.
kilowatt hours (kWh) used x energy rate = actual energy usage
Generally, the most significant part of your bill is the demand charge. Your utility company uses a demand meter to measure how much power you are using during a demand interval–typically 5-, 15-, or 30-minute segments of time throughout the billing month. The highest number of kilowatts used in any of these intervals is your “peak demand,” and this number is multiplied by the demand rate to get your demand charge.
peak demand x demand rate = demand charge
Consuming reasonably consistent amounts of electricity throughout the month will give you consistent bills. However, spikes in demand could lead to extreme demand charges that aren’t reflective of your overall usage.