A manufacturing company consumes on average 250,000 kWh per month and has a billed demand of 1,200

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A manufacturing company consumes on average 250,000 kWh per month and has a billed demand of 1,200 kW during each month. The company can select between two rates: Rate-1 and Rate-2 (described below). Determine the best rate suitable for the company.

Rate-2:

i. Customer charge: $250.00/month ii. Energy charge: $0.0225/kWh/month iii. Demand charge applicable to the billing demand:

– On-peak season: $400 for the first 100 kW

– plus $6.00/kW for any additional kW

– Off-peak season: $250 for the first 100 kW

– plus $4.00/kW for any additional kW The on-peak season extends from June to September and the off-peak season spans from October to May.

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