Solution-Aggregate annual demand, The original rate

Aggregate annual demand

Reference no: EM132015843

A small company has an aggregate annual demand of 1500 kW and uses 300,000 kWh annually. The original rate schedule was $10.00 per kW and $0.04 per kWh. There are also flat fees totaling $800 per month.

Consider a new rate schedule with a slightly lower demand charge and slightly higher consumption charge. The new demand rate is $4.00/kW and the new consumption charge is $0.11/kWh. The flat fees are decreased to $400 per month.

What is the change in annual electricity costs? (Use a negative number to indicate a decrease in costs).

Reference no: EM132015843

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Aggregate annual demand

Reference no: EM132015843

Reference no: EM132015843

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