What is the purpose of applying a demand factor?

Applying a demand factor serves the crucial purpose of recognizing that not all electrical loads will operate at full capacity simultaneously. In practical applications, many systems have various loads (lights, appliances, machinery) that do not all pull their maximum amperage at the same time due to usage patterns and operational schedules. By applying a demand factor, engineers can design electrical systems more efficiently, determining a more realistic load requirement for the system. This leads to optimized equipment sizing, reduced installation costs, and improved energy efficiency while ensuring that the system can adequately handle peak demands that might occur during specific times.

In contrast, other options might relate to electrical design considerations but do not define the primary intention behind demand factors. For example, while reducing the number of conductors needed could be a practical consideration, it is not directly tied to the conceptual basis of demand factors. Similarly, while accounting for potential equipment failures is important for overall system reliability, it does not address the operational patterns of loads. Compliance with local codes is a necessary aspect of electrical design, but demand factors specifically relate to load capacity rather than code adherence.