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Suppose a utility charges its large industrial customers $0.08/kWh for energy plus $10/mo per peak kVA (demand charge). Peak kVA means the highest level drawn by the load during the month. If a customer uses an average of 750 kVA during a 720-h month, with a 1000-kVA peak, what would be their monthly bill if their power factor (PF) is 0.8

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Answer:

$42,560

Explanation:

Given that :

Charge per kwh = $0.08

Peak kvA = $10 /month

Total hours = 720 hours / month

Peak = 1000kVA

Power factor (PF) = 0.8

Averga power = 750k

Power consumption (Active) = PF* average Powe

Active consumption =. 0.8 * 750 = 600kW

Energy used = 600 * 720 = 432000 KW

Cost = 432000 *$0.08 = $34,560

Peak Energy = 0.8 * 1000 = 800 KW

Cost = $10 * 800 = $8000

Total = $(34,560 + 8000)

Total = $42,560

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