What is annual benefit to consumers of power from project

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An electric utility company is considering a re-engineering of a major hydroelectric facility. The project would yield greater capacity and lower cost per kilowatt-hour of power. As a result of the project, the price of power would be reduced. This is expected to increase the quantity of power demanded. The following data are available:

Effect of Reduced Price of Power
Current Price($/kWh)	0.07
Current consumption(kWh/Year)	9,000,000
New Price($/kWh)	0.05
Expected consumption (kWh/year)	12,250,000

What is the annual benefit to consumers of power from this project?

Reference no: EM131374690

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