CHAPTER 3 ~ POWER PLANT ECONOMICS A power plant cost $375,800 to build. Its life is assumed 20 years; salvage, 15%. Find the si fund payment. Interest compounded annually at 5%. Solution: r Sinking fund pamen-(0-8) ,—| P=$375,800 $= 0.15($375 800) = $56,370 n=20 1=0.05 0.05 Sinking fund t= (375,800 - 56,370) ———,—_ inking fund payment =(375,8 ) aFo Sinking fund payment = $960.39 (answer) Find the production cost per 1000 kg steam in a steam plant when the evaporation rate is 7.2 kg steam per kg coal; initial cost of plant, $150,000; annual operation cost exclusive of coal, $15,000. Assume life of 20 years; no final value; interest on borrowed capital, 4%; on sinking fund, 3%. Average steam production is 14,500 kg per hr; cost of coal, $8.00 per tonne. Solution: Coal required = 14,500 / 7.2 = 2013.89 ke/hr Cost of Plant = $150,000 (150,000f 923 _]_ er 0.03)" ‘Annual operating cost exclusive of coal = $15,000 Interest on borrowed capital = 0.04($150,000) = $6,000.00 tonne SOE otaata/m{ Annual Production Cost = Annual Depreciation + Interest on Borrowed Capital + Annual Operating Cost exclusive of coal + Annual Fuel Cost Annual Production Cost = $5,582.36 + $6,000.00 + $15,000.00 + $141,133.41 Annual Production Cost = $167,715.77 ‘Annual Depreciation = Annual fuel cost = (000m. $141,133.41 ($167,715.77)(1000) (14,500)8760) ‘Annual Production Cost per 1000 kg = $1.32 per 1000 kg (answer) Determine the annual cost of a feedwater softener from the following data: Cost, $15,000; life, 10 years; salvage value, 0; annual repairs and maintenance, $500; annual cost of chemicals, $825; labor, $20.00 month; sinking fund depreciation with r= 4%. Solution: Capital Cost = $15,000 Annual Production Cost per 1000 kg = Annual Depreciation5. CHAPTER 3 ~ POWER PLANT ECONOMICS Annual Repairs and Maintenance = $500.00 Annual Cost of Chemicals = $825.00 Annual Labor Cost = $20 x 12 = $240.00 Annual Cost of Feedwater Softener = Annual Depreciation + Annual Repairs and Maintenance + Annual Cost of Chemicals + Annual Labor Cost Annual Cost of Feedwater Softener = $1,249.36 + $500.00 + $825.00 + $240.00 Annual Cost of Feedwater Softener = $2,814.36 (answer) ‘The bonds issued to build a certain power plant have a face value of $2,500,000 and bear interest at 4 4%. They are to be retired at end of 20 years by an accumulated sinking fund which will yield 4% compounded annually. Find the annual payment to the account of capital investment, Solution: P+.) Aooat—| (2,500,000)1-+0.045)" = A= $202,474.00 (answer) ‘The fixed element invested in a 100,000-kw power plant is $15,000,000. Find its average annual cost per kw, based on straight line depreciation. Estimated life, 15 yr; salvage, 20%; r, 5%. Solution: PS _15,000,000—0.20(15,000,000) 7 15 Depreciation = $800,000.00 Interest = 0.05(15,000,000) = $750,000.00 Depreciation = Annual Cost = Depreciation + Interest = $800,000.00+$750,000.00 Annual Cost = $1,550,000 Average annual cost per kw = $1,550,000 / 100,000 ‘Average annual cost per kw = $15.50/kw (answer) ‘An ash disposal system of a steam plant cost $30,000 when new. It is now 4 years old. The annual maintenance costs for the four years have been $2000, $2250, $2675, $3000. Interest rate = 6%. A new system is guaranteed to have an equated annual maintenance and operation cost not exceeding $1500. Its cost is $47,000 installed. Life of each system, 7 years; salvage value, 5% of first cost. Present sale value of old system is same as salvage value. Would it be profitable to install a new system? Solution:CHAPTER 3 ~ POWER PLANT ECONOMICS. Prevented by replacement Depreciation = Ave. Interest aos(a 7 342 \.95{20,00) = $1,140.00 Int, on Salvage Value = 0.06(0.05)(20,000) = $90.00 Average Maintenance = (1/4)(2000 + 2250 + 2675 + 3000) = $2,481.25 Total = 9,500 + 1,140 + 90 + 2,481.25 = $13,211.25 Incurred by replacement 47,000-0.05(47,000) 7 0.08; (ms Ta .95(47,000) = $1,530.86 Depreciation = $6,378.57 Ave. interes z Int. on Salvage Value = 0.06(0.05 47,000) = $141.00 Maintenance and Operation = $1,500.00 Total = 6,378.57 + 1,530.86 + 141 + 1,500.00 = $9,550.43 Since incurred by replacement is less than prevented by replacement, itis profitable t new system. ‘Ten years ago a small steam plant of 2000-kw capacity costing $125 per kw was erected. The life was estimated at 15 years and the salvage value at 5%. At present, abandoning the old plant in favor of a new Diesel plant is being considered. A market has been found for the old engine and boiler equipment at $15,000. The remainder of the old plant can be utilized in the new and is given a valuation of $8500. Depreciation has been figured on the straight line basis. What is the difference between the depreciated book value of the old plant and its sale value? How would ‘the difference be taken care of in the reconstruction? Solution: Depreciated book value (1-0.05)(2000)125) 15 Sale Value = $15,000.00 + $8,500.00 = $23,500.00 = (2000X125)-10) ] = $91,666.67 Difference = 91,666.67 ~ 23,500.00 = $68,166.67 (answer) The difference is too high, therefore no reconstruction is to be considered. (answer) ‘The load duration curve and fuel characteristics for a 45,000 kw plant are given in Prob. 20, Chapter 2. Other data for the same station are: Initial cost, $135 per kw; estimated life, 20 years; salvage value, 8% of first cost; interest rate, 5%; taxes and insurance, 3 14%; labor, 45 men;CHAPTER 3 ~ POWER PLANT ECONOMICS average salary, $175 per month; maintenance and repairs, $65,000 per annum; oil, waste and supplies, $20,000 per annum; coal, $8.25 per tonne. Find the production cost per kw hr. Solution: itonne _1kg 1000kg \ 2.205/b, First cost of the Plant = (45,000 kw)($ 135 per kw) = $6,075,000.00 Salvage value = 0.08($ 6,075,000) = $486,000.00 Coal required = (2.83x10" worl. ssa asses FIXED ELEMENT Annual depreciation on straight line basis = oD = $279,450 Interest rate = 0.05($ 6,075,000) = $303,750 Taxes and insurance = 0.035($ 6,075,000) = $ 212,625, ENERGY ELEMENT Labor = 45 ($ 175)(12) = $94,500 Maintenance and repair = $ 65,000 il, waste, and supplies = $ 20,000 Fuel cost = ($ 8.25)(128,345) = $ 1,058,846 Total production cost = $ 279,450 + $ 303,750 + $ 212,625 + $ 94,500 + $ 65,000 + $ 20,000 +$ 1,058,846 = $ 2,034,171 sie hrprodices mat +2(33.0)+2(32.2)+2(28.8)+2(29.6) +2(29.2) | 2(a0) | +2(28.5)+-2(28.0)+-2(22.0)+-2(12)+-8 Kw hr produce = 233,278,800 kw hr Production cost per kw hr= Production cost per kw hi Production cost per kw hr= 2,034,171 / 233,278,800 0.00825 / kw hr .825 ¢ per kw hr (answer) The annual costs expected by a utility system in supplying a certain residential suburb of 45,000 customers are: Fixed element, $345,000; energy element, $180,000; customer element, $300,000; return on investment, $200,000. 17,050,000 kw hr will be registered on customer's meters during the year and their maximum demand on the power plant will be of the order of S500 kw. Diversity factor from Table 2-2. (a) Form a straight line meter rate. (b) Form a three charge rate, putting % of the profit in the energy element, % in fixed element. (c) Form a room rate in which the customer element is a fixed monthly service charge and the fixed element is obtained in the first 4 kw hr per room. (Assume average home, 6 rooms.) Energy element is uniformly distributed. Solution:CHAPTER 3 ~ POWER PLANT ECONOMICS (2) Straight Line Meter Rate = (Fiked element + Energy Element + Customer Element + Return on Investment) / Energy Consumption Straight Line Meter Rate = (345,000 + 180,000 + 300,000 + 200,000)/(17,050,000) Straight Line Meter Rate = $0.06 per kwhr = 6 ¢ per kwhr (answer) (b) Three charge rate Demand Charge = Fixed Element + a portion of profit Demand Charge = $345,000 + (1/4)($200,000) = $395,000 Over-all Diversity Factor=3x1.3x1.2x1.1=5.148, Customer's Peak = (5,500 kw)(5.148) = 28,314 kw Unit Demand Charge = ($395,000)/(28,314) = $13.95 per kw per annum = $1.16 per kw of, maximum demand per month Unit Energy Charge = [(3/4)($200,000) + $180,000)/(17,050,000) = $0.0194 per kw hr = 19.4 mills per kw hr Service Charge = Customer Element = $300,000 Unit Service Charge = ($300,000)/(45,000) = $6.67 per yr = $0.56 per month = 56 ¢ per month Final Rate: $1.16 per kw of maximum demand per month, plus 19.4 mills per kw hr used, plus a service charge of 56 ¢ per month. (answer) (6) Room Rate ‘Annual sum = $345,000 + $300,000 = $645,000 Charge per kw hr per month for the first 4 kw hr per room = ($645,000)/(45,000 x 6 x 4x 12) = $0.0498 = 4.98 ¢ per kw hr per month for the first 4 kw hr per room. Remaining as a straight energy charge = $180,000 + $200,000 = $380,000 Kwhr remaining after this preliminary consumption = 17,050,000 ~ 45,000 x 6 x 4x 12 = 4,090,000 Energy Charge = 380,000 / 4,090,000 = $0.0929 = 9.29 ¢ per kw hr Room rate: = 4,98 ¢ per kw hr per month for the first four kw hr per counted room and 9.29 ¢ per kw hr for all energy used in excess of this. (answer)10. 11, CHAPTER 3 ~ POWER PLANT ECONOMICS. ‘A town of 4500 population has 2000 connected customers. The maximum demand is 350 kw and the annual output 1,950,000 kw hr. The plant is operated by the municipality and its rate includes an element which goes towards defraying the expenses of town administration, The rate is expected to produce: $12,500 per annum for fixed element; $20,000 per annum for energy element; $30,000 per annum for customer element; $50,000 per annum for town expenses element. Work out a rate of the following form: (A) © per kw hr for the first 25 kw hr per month; (B) ¢ per kw hr for all energy used in excess of 25 kw hr. 1 block to return fixed element, customer element, and $20,000 of town expenses, Solution: (A) Energy consumption for the first 25 kw hr= 25 x 12 x 2000 = 600,000 kw hr ‘Annual sum = $12,500 + $30,000 + $20,000 = $62,500 Rate = ($62,500)/(600,000) = $0.1042 = 10.42 ¢ per kw hr for the first 25 kw hr per month fans). (8) Remaining as a straight energy charge = $20,000 + $50,000 - $20,000 = $50,000 Kw hr remaining = 1,950,000 - 600,000 = 1,350,000 Rate = ($50,000}/(1,350,000) = $0.0371 = 3.71 ¢ per kw hr for all energy used in excess of 25 kw hr (ans). ‘The annual costs of operating an electric system are: Coal, $300,000 Franchise and publicity, $70,000 Station depreciation, $190,000 Station supplies, $30,000 Primary line dep., $190,000 Interest, taxes and insurance: Secondary lines dep., $120,000 Plant maintenance: Fixed $1000, variable $2000 Secondary lines maintenance, $50,000 Labor Generation, $105,000; Distribution $80,000; Accounting $150,000 Superintendence and management, $50,000 Dividends to stockholders, $350,000 Annual station output, 70 x 10° kw hr, 10% energy loss in transmission; peak load, 20,000 kw; diversity, 3.33; 100,000 customers. Compute a three-charge rate in which one-half of the dividends are in the service charge, the other half in the demand charge. Solution: FIXED ELEMENT: Station Depreciation = $ 190,000 nn plant and primary line, $50,000; on secondary lines, $85,000CHAPTER 3 ~ POWER PLANT ECONOMICS Primary line dep. = $ 30,000 reserve = $ 190,000 + $ 30,000 = $ 220,000 Interest, taxes and insurance on plant and primary line = $ 50,000 Maintenance (Fixed) = $ 1,000 Superintendence & Management = $ 50,000 Total annual cost for fixed element = $ 321,000 ENERGY ELEMENT: Labor generation = $ 105,000 ‘Accounting = $ 150,000 Coal = $ 300,000 Maintenance (Variable) = $ 2000 Total energy element charge = $ 557,000 CUSTOMER ELEMEN’ Secondary line dep. = $ 120,000 Interest, taxes and insurance on secondary line = $ 85,000 Secondary line maintenance = $ 50,000 Franchise and publication = $ 70,000 Distribution = $ 80,000 Total customer element charge = $ 405,000 ‘Summing various elements of the cost: Fixed element = $ 321,000 Energy = $557,000 Customer = $ 405,000 Dividends = $ 350,000 Annual production cost = $1,633,000 Demand charge = fixed + a portion of dividends Demand charge = $ 321,000 + 0.5(350,000) = $ 496,000 Service charge = customer element = remainder of dividends Service charge = $ 405,000 + 0.5(350,000) = $ 580,000 $580,000 Service charge = —> 20-000 _ $9.48 per month rvice charge Goo,000\22) $i per mor12. 13, CHAPTER 3 ~ POWER PLANT ECONOMICS Demand chase = 5 Ra =$0.62 per kw max. demand per month $557,000 Energy charge = = nerBy CharBE = 0.1) 70x10° KW - hr) THREE-CHARGE RATE (answer) $0.62 per kw of maximum demand per month, plus 9 of 48 ¢ per month. (0.009 = 8 mills per kw hr per kw hr used, plus a service charge ‘A customer owning an 8-room house has 365 kw hr recorded on his meter during a certain month, The local electric rate is: 6¢ per kw hr for the first 6 kw hr per counted room, plus 4¢ per kw hr for the next 8 kw hr per counted room, and 2¢ per kw hr for all remaining enerey consumed during the month, Compute the electric bill for the month. Solution: Electric [365 —(8+6)(8)1(0.02) + (8)(8)(0.04) + (6)(8)(0.06) = $10.50 (answer) ‘Annual costs in certain power system are: For fixed costs: Plant, $1,750,000; primary lines, $600,000; secondary lines, $1,250,000. For operating cost: Plant, $75,000 indirect and $950,000 direct. For distribution system, $500,000 Direct customer expense, $400,000; profit, 7% of fixed cost. Peak load on plant, 45,000 kw; diversity factor, 4; annual plant output, 1.2 x 10" kw hr. Assume 50,000 customers and 20% transmission loss. Find the straight line meter rate. Solution; FIXED ELEMENT ‘Annual cost for plant fixed cost = $ 1,750,000 Annual cost for primary lines fixed cost = $ 600,000 Total annual cost for fixed element = $ 2,350,000 ENERGY ELEMENT Direct customer expense = $ 400,000 For distribution system = $ 500,000 For indirect operating cost = $ 75,000 Total energy element charge = $ 975,000 CUSTOMER ELEMENT Annual cost for secondary lines fixed cost = $ 1,250,000 For direct operating cost = $ 950,000 Total customer element charge = $ 2,200,00014, CHAPTER 3 ~ POWER PLANT ECONOMICS PROFIT Total annual fixed cost = $ 1,750,000 + $ 600,000 + $ 1,250,000 = $ 3,600,000 Profit element = 0.07 x $ 3,600,000 = $ 252,000 ‘STRAIGHT LINE METER RATE: ‘Summing the various elements of cost: 2,350,000 Energy = $975,000 Customer = $ 2,200,000 Profit = $ 252,000 Annual production co: 5,777,000 $5,777,000 Rate * G—oa.2xi0" kWh) Using data of Prob. 13, construct a Doherty rate, putting profit into the proper elements, in proportion to the investment. Solution: For this rate let the profit element be placed with fixed and customer elements in proportion to the capital investment in each. Total capital investment (annual) = $ 2,350,000 + $ 950,000 = $ 3,300,000. Demand charge = fixed + a portion of profit Demand charge = $ 2,350,000 + (2,350,000 / 3,300,000)(252,000) = $ 2,529,455,000 (0.08 . Say 6 ¢ per kw hr rate (answer) Service charge = customer element + remainder of profit Service charge = $ 2,200,000 + (950,000 / 3,300,000)(252,000) (350,000) = $ 2,272,555.00 $2,272,585 . 7 Service charge = Fo y= 8379 Per month Demand charge = nes $1.05 per kw max. demand per month $975,000 Energy charg =$0.010 = 10 mills per kwh a.2x10" Ew} sieaiiaaiied THREE-CHARGE RATE (answer) $ 1.05 per kw of maximum demand per month, plus 10 mills per kw hr used, plus a service charge of $ 3.79 ¢ per month.15. 16. 7. CHAPTER 3 ~ POWER PLANT ECONOMICS ‘An air preheater installation will cost $12,500. Its life is assumed to be 8 years. Salvage value is nothing. Annual maintenance and repair is estimated to average $150. Use compound interest ‘at 6% and find the annual cost of the preheater. Solution: Annual Cost = os} | + Annual maintenance and repair cost i Gy 0.08 (+0.06)— Annual Cost = $1,412.95 (answer) ‘Annual Cost (2500-0) | +150 What initial cost will an annual saving of $675 per year for ten years amortize at 4% interest compounded annually? Solution: Cr Initial Cost = Annual Saving x [oer r 0.04 Initial Cost = $8,104.12 (answer) Initial Cost = $675 x [Ssseer=s) ‘A 30 mhp condensate pump motor has been burned beyond repair. The plant superintendent has two replacement alternatives. Manufacturer “A” offers to replace the original (which was an “A” motor) for $510. Manufacturer "8" offers a cheaper motor at $400 but can only guarantee 87% efficiency whereas the “A” motor is guaranteed for 89%. The installation operates 25% of the time at full load, and 75% of the time at half load where the two efficiencies become 85% and 84% respectively. Assume a motor comparison period of 5 years, interest rate 8%, equal maintenance costs. Electric energy is charged for at the rate of 1 % ¢ per kw hr. (a) Which motor is the more economical buy? (b) At what energy cost do they become equal alternatives? Solution: Operation Cost: Manufacturer A Operation cost = 8760 [0.25(22.05/0.89) + 0.75(0.5)(22.05/0.84)](1.5/100) = $2009.70 Manufacturer 8 Operation cost = 8760 [0.25(22.05/0.87) + 0.75(0.5)(22.05/0.85)]{1.5/100) = $2110.80 10CHAPTER 3 ~ POWER PLANT ECONOMICS (a) Comparison: Manufacturer A Manufacturer 8 Depreciation | = 510/5 $102.0 | = 400/5 $20.0 Ay. Interest = (0.08/2)((5+1)/5)x510 24.5 | = (0.08/2)((5+1)/5)x400 19.2 Operation cost, 2009.7 210.8 Total $2136.20 $2210.0 Manufacturer A is more economical. (answer). (b) Energy cost Manufacturer A operation cost = ($2009.7/1.5)(x) = 1339.8x Manufacturer 8 operation cost = ($2110.8/1.5)(x) = 1407.2x Equating: 102 + 24.5 + 1339.8x= 80 + 19.2 + 1407.2x x= 0.408 ¢ per kw-hr (answer) 18, Make a comparative analysis of the production cost per kw hr of the two plants for which data are given. Annual production = 1.x 10° kw hr. Diese! Plant ‘Steam Plant Engine and generator $53,000 Turbogen. and $24,000 condenser ‘swbd. and wiring $5,600 Boller and stoker $20,000 Miscellaneous $8,000 Swbd, and wiring $5,600 Building $10,500 Miscellaneous $10,000 Labor, per month $350 Building $12,000 Fixed charges 11% Labor, per month $450 Oil, per liter (0.621 g/ml) 4.1¢ Fixed charges 12% Fuel economy 0.49 Ib/kw hr Coal, per ton $3.50 Fuel economy ‘1.72 Ib/kw hr Solution: Fixed Charges: Diesel Plant = 0.11(53,000 + 5,600 + 8,000 + 10,500) = $8,481 Steam Plant = 0.12(24,000 +20,000 + 5,600 + 10,000 + 12,000) = $8,592 Operation Costs: Diesel Plant: Labor = $350x 12 = $4,200 Fuel economy = (0.49 Ib/kw-hr)(1 kg / 2.208 Ib) = 0.2222 ke/kw-hr 0.621 g/ml. = 0.621 ke/L Fuel consumption = (0.2222)(1 x 10°) = 222,200 kg Fuel cost = (222,200 / 0.621)(4.1/100) = $14,670 Operation cost = Labor + Fuel cost = $4,200 + $14,670 = $18,870 119. CHAPTER 3 ~ POWER PLANT ECONOMICS Steam Plant: Labor = $450x 12 = $5,400 Fuel economy = (1.72 lb/kw-hr)(1 kg / 2.205 Ib) = 0.78 ke/kw-hr Fuel consumption = (0.78)(1 x 10°) = 780,000 kg Fuel cost = (780,000 kg)(2.205 Ib/kg)(1 ton / 2000 Ib)($3.50/ton) = $3,010 Operation cost = Labor + Fuel cost = $5,400 + $3,010 = $8,410 Comparative analysis: Diesel Plant ‘Steam Plant Fixed Charges $8,481 $8,592 Operation Cost $18,870 $8,410 Total $27,351 $17,002 Production cost per kw-hr 2.7¢/kw-br 1-7¢/kw-br Steam plant is more economical. (answer) Using data of the example in Sec. 3-10, form a block meter rate with the fixed element and one- half the customer element collected in the first 12 kw hr per month per customer. In the second block, reduce the rate to % of the first block for the collection of the energy element and the remainder of the customer element. Assume that % of the customers will average full ‘consumption of the second block. Collect the profit element in the third and final block. Solution: Fixed element = $795,840.00 Energy element = $546,000.00 Customer element = $1,033,000.00 Profit element = $610,400.00 Annual production cost = $2,985,240.00 Customer = 150,000 Energy used = 76,000,000 kwhr First Block: Charge = Fixed element + (1/2) Customer element Charge = $798,840 + (1/2)($1,033,000) = $1,312,340.00 First 12 kwhr per month per customer _ $1,312,340 © 150,000%12%1: Second Black: Charge = (3/4) Energy element + (1/2) Customer element Charge = (3/4)($546,000) + (1/2)($1,033,000) = $926,000.00 Next 12 kwhr per month per customer s $926,000 ~ 0.75%150,000x42«12 = $0.061 = 6.1 ¢ per kwhr 7 ¢ per kwhr 220. 21. CHAPTER 3 ~ POWER PLANT ECONOMICS ‘Third and Final Block Charge = (1/4) Energy element + Profit Charge = (1/4)($546,000) + $610,400 = $746,900.00 Kw hr remaining = 76,000,000 ~ 150,000 x 12 x 120.75 x 150,000 x 12 x12 = 38,200,000.00 $746,900 Remaining use rate = 38,200,000 =$0.020 =2.0 ¢ per kwhr Answer: First 12 kw hr per month or less at 6.1 ¢ per kw hr; next 12 kw at 5.7 ¢ per kw hr; and all remaining use at 2.0 ¢ per kw hr ‘A 500-kw electric lighting plant cost $95 per kw installed. Fixed charges, 14%; operating costs, 1.3¢ per kw hr. The plant averages 150 kw for 5000 hr of the year, 420 kw for 1000 hr, and 20 kw for the remainder. What is the unit cost of production of electric energy? Solution: Plant consumption = 150 x 5000 + 420 x 1000 + 20 (8760-5000 - 1000) = 1,225,200 kw-hr Capital cost = 500 x 95 = $47,500.00 Fixed charges = 0.14 x 47,500 = $6,650.00 Operating cost = 1.3 x 1,225,200 / 100 = $15,927.60 Unit cost of production = Fixed charges + Operating cost Unit cost of production = $6,650.00 + $15,927.60 = $22,577.60 (answer) ‘The load duration of a group of residential customers served by a substation is given by the following data: Percent of the year | 0 | 10] 20] 30] 40] 50] 60] 70] 80) 90] 100 Kilowatts 95 | 50 | 40 | 30 | 29 | 29 | 28 | 28 | 22/12] 8 Average efficiency of distribution is 95%. Customer's rate is 8¢ per kw for the first 25 kw-hr, 5¢ per kw hr for the next 30 kw hr, 3¢ per kw hr for the next 50 kw hr, and 2¢ per kw hr for all remaining energy. What is the average monthly gross income from this group of customers if 20 of them average taking 300 kw hr per month, 50 of them take 130 kw hr per month, while the remaining average 70 kw hr per month each? How many customers are there in the whole group? Solution: Energy Consumption = (1/2)(95 +2 x50 +2x40+2x 3042x2942 x29 42x28 +2x28+2x22 +2.x 12 +8)(10/100)(8760) = 279,882 kw-hr/year = 23,323,5 kw-hr/month B22. 23, 24, CHAPTER 3 ~ POWER PLANT ECONOMICS Remaining number of customer 20x 300 + 50x 130 + Px 70 = 23,3235 x0.95 P = 138 customers Average monthly gross income For 20 taking 300 kwhr per month = (0.08 x 25 + 0.05 x 30 + 0.03 x 50 + 0.02(300 ~ 50 ~ 30 ~ 25))x20 = $ 178.00 For 50 taking 130 kwhr per month = (0.08 x 25 + 0.05 x 30 + 0.03 x 50 + 0.02(130 ~ 50-30 ~ 25))x50 = $275.00 For 138 taking 70 kwhr per month = (0.08 x 25 + 0.05 x 30 + 0.03(70 ~ 30 -25))x138 = $545.10 Average monthly gross income = $178.00 + $275.00 + $545.10 = $998.10 (answer) A customer's meter reads 29,543 kw hr on May 1, and 29,598 kw hr on June 1. Find the amount of his electric bill for May based on the following rates. (2) 7¢ per kw hr (b) 10¢ per kw hr for the first 35 kw hr; 5¢ per kw hr for the next 25 kw hr; 3¢ per kw hr forall in excess of 60 kw hr. Solution: (a) Electric Bill = (29,598 - 29,543)(0.07) = $3.85 (answer) (b) Electric Bill Energy consumption - 29,598 - 29,543 = 55 kw hr 35+ 25 = 60 kwhr> 55 kw hr Electric Bill = (55 ~35)(0.05) + (35)(0.10) = $4.50 (answer) Assume that a customer's maximum monthly demand was recorded as 120 kw. His energy consumption for the same period was 40,500 kw hr. His rate is: $2.40 per month per kw for the first 50 kw of maximum demand; $2.00 per month per kw for the excess of maximum demand ‘over 50 kw; plus 5¢ per kw hr for the first 1000 kw hr per month; 3¢ per kw hr for the next 4000 kw hr per month; and 2¢ per kw hr for all energy in excess of 5000 kw hr. What is his bill for the month considered? Solution: Bill = (120 - 50)(2) + (50)(2.4) + (40,500 - 4000 ~ 1000)(0.02) + (4000)(0.03) + (1000)(0.05) = $1,140 (answer) A customer having a 7-room house used 55 kw hr during a certain month. What i his electric bill for that month if his rate is that given as the example of “Room rated charge,” Sec 3-9, and ‘there is a 5% discount for payment in 15 days. Solution: From Example of Sec 3-9. 1425. 26. CHAPTER 3 ~ POWER PLANT ECONOMICS 10 ¢ per kw hr per month for the first 3 kw hr per counted room; plus 7 ¢ per kw hr per month for the next three kw hr per counted room; plus 4 ¢ per kw hr per month for the excess over 6 kw hr per counted room. Electric Bill =[ (55 —7(6)](0.04) + 7(3)(0.07) + 7(3)(0.10)](1- 0.15) = $3.89 ‘A customer owning an eight-room house has electric service under the following rate: 9¢ per kw bir for the first 3 kw hr per room; 5¢ per kw hr for the next 5 kw hr per room; 3¢ per kw hr for all in excess of 8 kw hr per room. His meter readings for three consecutive months were: May 5— 2789 kw hr; June 5 ~ 2984 kw hr; July 5 ~ 3154 kw hr. What is the amount of his bill for May 5 ~ June 5? For June 5 — July 5? What is the average cost per kw hr for each of the two periods? Solution: May 5 to June 5: 2984 ~ 2789 = 195 kw hr Bill = [195 ~ (8)(8)](0.03) + (5)(8)(0.05) + (3)(8)(0.08) = $8.09 (answer) June 5 to July 5: 3154-2984 = 170 kw hr Bill = [170 ~ (8)(8)](0.03) + (5)(8)(0.05) + (3)(8(0.08) = $7.34 (answer) Average cost per kw hr from May 5 toJune 5 = ($8.09)/(195 kw hr) = $0.0415 per kw hr= 4.15 ¢ per kw hr (answer) Average cost per kw hr from June 5 to July 5 = ($7.34)/(170 kw hr) = $0.0432 per kw hr 32 ¢ per kw hr (answer) ‘The rate for a commercial customer is $6.00 per kw per month for the first kw of maximum demand, plus $5.00 per kw per month for the next 6 kw of maximum demand, plus $4.00 per kw er month for all of the maximum demand in excess of 7 kw, plus energy charge as follows: First 1100 kw hr at 4¢ per kw hr. All remaining energy at 1 ¢ per kw hr. What type of rate is this? How much is the customer's bill in @ month when he registers 15-kw maximum demand and ‘consumes 1850 kw hr? Solution: ‘Type of rate = Block Hopkinson Demand Rate Bill = (15 ~7)(4) + (6)(5) + (2)(6) + (1850 - 100)(0.01) + (100}(0.04) = $89.50 (answer) - End~ 15