i. Calculate the utility bill for a facility during one month characterized by the following parameters:
• Actual demand: 450 kW • Energy consumption: 85,000 kWh • Average power factor: 70 percent • The facility is subject to the following rate structure:
• Customer charge: $150/month • Billed demand charge: $10/kW • Energy charge: $0.025/kWh • The rate structure includes a power factor clause that states that the billing demand is determined as the actual demand multiplied by the ratio of 85 and the actual average power factor expressed in percent.
ii. Determine the cost savings achieved for the month if the facility power factor is improved to be at least 85 percent.