Question

2-5 A small machine shop, with 30 hp of connected load, purchases electricity at the following monthly rates (assume any demand charge is included in this schedule) per hp of connected load: First 50 kWh at 12.6f per kWh Next 50 kWh at 10.6d ner k Wh Next 150 kWh at 6.0fper kWh Over 250 k Wh at 5.7 per kWh The shop uses 2800 k Wh per month (a)Calculate the monthly bill for this shop. What are the marginal and average costs per kilowatt-hour?

Answer 1

Monthly bill for the company:

50* 12.6 + 50*10.6 + 150*6.0 + ( 2800-250)*5.7 = 16,595 c

MArginal cost per kwh is 5.7 c because last kili watt hour (kwh) is billed at the rate of 5.7 c

Average cost per kwh is 16595 / 2800 = 5.926785 = 5.93 c