Non-residential customers of electric utilities often qualify to have their monthly bill amount computed using two different rate structures. Assume Schedule A is the rate structure which applies when a customer's peak power demand is less then an assigned value X, while Schedule B applies when ( he peak power demand is above X. The Schedule A rate structure consists of a fiat( uniform) cost component plus a second cost component proportional to ( he energy consumed. The Schedule B rate structure includes, in addition to these two types of charges, a third cost component which is proportional to the peak power demand. Also, non-residential customers with energy usage below a certain defined level are termed Type I users, while those customers who operate above this threshold are termed Type II users. In this analysis it was found that as the peak power demand is reduced, while holding energy usage constant, that Type I users are rewarded when Schedule B gives way to Schedule A, whereas Type II users suffer a penalty. Both elementary and advanced strategies are given for the reduction of utility bills when the user has the flexibility of moving between the two schedules. A numerical example is provided.