Mohammad Reza Razaghi (asker) Feb 23, 2007:

Some More Explanations Dear all, please find below some more explanations. Kindly note that the term is used in calculating energy bills. I know exactly what it says, I am only trying to find an exact equivalent for that. Thank you in advance:

Rachet Charge
Some natural gas utilities have a “ratchet” on consumption. The
charge in the rate schedule is based on a percent (say 40 percent)
of the highest month’s consumption in the past 11 months. This
type of rate schedule is typically reserved for large commercial
users and is designed for facilities with a relatively even annual
load. If, for example, a facility uses 20,000 therms during the
coldest winter month, this would then “set” the charge for the next
11 months. During the summer months the boilers are turned off
and gas is only used for some kitchen equipment and some
domestic hot water heaters. The consumption may drop to 2,000
therms for a month. However, because of the 40 percent ratchet
clause on the rate schedule, the facility is charged for 8,000
therms (20,000 x 40%).