Cost of Electrical Energy and Power

Prepared by:

Engr. Ramsey V. Bercades

Course Facilitator
 OVERVIEW

The students will learn on how to compute electrical energy and power, cost and other charges that are
included in computing the total billing of electricity per month and importance of usage of power in a
building or establishment

LEARNING OUTCOMES

The students are assumed to be able to familiarize the computations on getting the cost of electric energy
and power in a building. Furthermore, they will be able to understand the definition of terms that are used in
distribution system.
 INTRODUCTION

Design of a building electrical installation involves computation with Power (P), expressed in watts; voltage
(E), in volts; amperage (I), in amps; and volt-amp (VA), in volt and amperes, the power factor (PF) is used.
 TO FIND DIRECT CURRENT (DC)
DC Power (W) P=ExI
CONVERSION
Ampere (I) I=P/E
OF
FORMULAS
 ALTERNATING CURRENT (AC)
TO FIND
Single Phase Three Phase
AC Real Power E x I x PF 1.73 x E x I x PF
AC Apparent Power (VA) 1.73 (VA)
CONVERSION I = P / E x PF I = P / (1.73 x E x PF)
OF Ampere (I)
I = (VA) / E I = (VA) / (1.73 x E)
FORMULAS
PF = P / (E x I) PF = P / (1.73 x E x I)
Power Factor (PF)
PF = P / (VA) PF = P / (1.73 x VA)
 The energy
charge is
simply the cost This may be
of electrical computed by the
energy following equation,
consumed (₱ where energy
energy) consumption (q) is
expressed in
kilowatt-hours and
unit cost of
ENERGY ₱energy = q * ₱/kWh electricity (₱/kWh)
CHARGE
The energy charge is
based on energy
consumed by the
customer during a
billing period, say once
a month or every 30
days. Energy consumed
is determined by
reading the electric
meter.
 EXAMPLE:

1. A 60W lamp remains lighted for a 24 hrs a day for 30 days. Determine the
electrical energy consumed over this period. Calculate the energy charge for the
billing period at a rate of ₱ 1.25 / kWh.

Solution:
q=Pxt
ENERGY = (60 W) (24 hr/day *30 days)
q = 43.2 kWh
CHARGE
₱energy = q x ₱/kWh
= 43.2 kWh x ₱ 1.25/kWh
₱energy = ₱ 54.00 / billing period
 EXAMPLE:

2. A large residence consume 1,155 kWh of electrical energy over a billing period.
Determine the total charge for the billing period based on the rate schedule
provided below:

Particulars Rate
Service Charge ₱ 310.00
ENERGY First 1000 kWh of billing period ₱ 7.02 per kWh
CHARGE Next 2000 kWh of billing period ₱ 6.54 per kWh

Total Charge = ₱310.00 + (₱7.02/ kWh x 1000 kWh) + (₱6.54/ kWh x 155 kWh)
= ₱310.00 + ₱7,020.00 + ₱1,013.70
Total Charge = ₱8,343.70
 The highest level of electrical demand monitored in a particular
period usually for a month period or over a small time interval
Maximum (usually 15 min. but sometimes 30 or 60 min.)
Demand

kWh consumed:

Day 1 – 1000 kWh

Day 2 – 900 kWh
Maximum
Day 3 – 1125 kWh
Demand
Day 4 – 990 kWh
Day 5 – 1100 kWh
 Commercial and industrial consumers (and some all-electric
Power residential users) are assessed an additional charge based on the
“Demand” highest rate that energy is consumed.
Charge

Power “Demand” Charge are additional fees for maintaining

constant supply of electricity.
 SAMPLE RATE OF SCHEDULE FOR
COMMERCIAL AND INDUSTRIAL
OPERATIONS

Service Charge Rate

Single Phase ₱ 366.00
Three Phase ₱ 621.60

Energy Charge Rate

First 1000 kWh of month ₱ 5.856 per kWh
Next 2000 kWh of month ₱ 5.31 per kWh
Next 5000 kWh of month ₱ 4.926 per kWh
Next 10000 kWh of month ₱ 4.272 per kWh
Additional kWh of month ₱ 0.0657 per kWh
 SAMPLE RATE OF SCHEDULE FOR
COMMERCIAL AND INDUSTRIAL
OPERATIONS

Demand Charge Rate

First 25 kW of month ₱ 531.00 per kW per month
Next 475 kW of month ₱ 477.00 per kW per month
Next 1000 kW of month ₱ 450.00 per kW per month
Additional kW of month ₱ 432.00 per kW per month
Example 1: Energy Charge Rate
A small manufacturing Service Charge for three-phase ₱ 621.60 per kWh
plant on a single three- service
phase service consumes First 1000 kWh of month ₱ 5.856 per kWh
104,000 kWh of Next 2000 kWh of month ₱ 5.31 per kWh
electrical energy over a Next 5000 kWh of month ₱ 4.926 per kWh
billing month period. Next 10000 kWh of month ₱ 4.272 per kWh
Peak demand is Additional kWh of month ₱ 3.942 per kWh
measured at 400 kW
during the day and 200 Demand Charge Rate
kW at night. Determine First 25 kW of month ₱ 531.00 per kW per month
the total monthly charge Next 475 kW of month ₱ 477.00 per kW per month
based on the rate Next 1000 kW of month ₱ 450.00 per kW per month
schedule provided:
Example 1:
Energy Charge Solution Total amount
A small manufacturing
plant on a single three- Service charge for 3phase ₱ 621.60
phase service consumes First 1000 kWh 1000 kWh x ₱ 5.856/kWh ₱ 5,856.00
104,000 kWh of Next 2000 kWh 2000 kWh x ₱ 5.31/kWh ₱ 10,620.00
electrical energy over a Next 5000 kWh 5000 kWh x ₱ 4.926/kWh ₱ 24,630.00
billing month period. Next 10000 kWh 10000 kWh x ₱ 4.272/kWh ₱ 42,720.00
Peak demand is Additional kWh Remaining 86000 kWh x ₱ 339,012.00
₱ 3.942/kWh
measured at 400 kW Subtotal ₱ 423,459.60
during the day and 200
kW at night. Determine
the total monthly charge
based on the rate
schedule provided:
Example 1:
Energy Charge Solution Total amount
A small manufacturing
plant on a single three- Service charge for 3phase ₱ 621.60
phase service consumes First 1000 kWh 1000 kWh x ₱ 5.856/kWh ₱ 5,856.00
104,000 kWh of Next 2000 kWh 2000 kWh x ₱ 5.31/kWh ₱ 10,620.00
electrical energy over a Next 5000 kWh 5000 kWh x ₱ 4.926/kWh ₱ 24,630.00
billing month period. Next 10000 kWh 10000 kWh x ₱ 4.272/kWh ₱ 42,720.00
Peak demand is Additional kWh Remaining 86000 kWh x ₱ 339,012.00
₱ 3.942/kWh
measured at 400 kW Subtotal ₱ 423,459.60
during the day and 200
kW at night. Determine
the total monthly charge
based on the rate
schedule provided:
Example 1: Demand Charge Solution Rate
A small manufacturing First 25 kW of month 25 kW x ₱ 531.00/kW ₱ 13,275.00
plant on a single three- Next 475 kW of month Remaining 375 kW x ₱ 178,875
phase service consumes ₱ 477.00
104,000 kWh of Subtotal ₱ 192,150.00
electrical energy over a
billing month period.
Total Monthly Charge:
Peak demand is
measured at 400 kW ₱ 423,459.60 + ₱ 192,150.00
during the day and 200
kW at night. Determine Total = ₱ 615,609.60
the total monthly charge
based on the rate
schedule provided:
Example 2:
A small manufacturing
plant on a single three-
phase service consumes Energy Charge Rate
126,000 kWh of electrical Service Charge for three-phase ₱ 621.60 per kWh
service
energy over a billing
First 1000 kWh of month ₱ 5.856 per kWh
month period. Peak
Next 2000 kWh of month ₱ 5.31 per kWh
demand is measured at
400 kW during the day Next 5000 kWh of month ₱ 4.926 per kWh
and 200 kW at night. Next 10000 kWh of month ₱ 4.272 per kWh
However, because of an Additional kWh of month ₱ 3.942 per kWh
abnormality in plant
operation, demand power Demand Charge Rate
increases to 1200 kW over First 25 kW of month ₱ 531.00 per kW per month
a 15 min. period on one
Next 475 kW of month ₱ 477.00 per kW per month
day during the month.
Next 1000 kW of month ₱ 450.00 per kW per month
Determine the total
monthly charge based on
the rate schedule provided:
Example 2:
A small manufacturing
plant on a single three-
phase service consumes Energy Charge Solution Total amount
126,000 kWh of electrical Service charge for 3phase ₱ 621.60
energy over a billing First 1000 kWh 1000 kWh x ₱ 5.856/kWh ₱ 5,856.00
month period. Peak
Next 2000 kWh 2000 kWh x ₱ 5.31/kWh ₱ 10,620.00
demand is measured at
Next 5000 kWh 5000 kWh x ₱ 4.926/kWh ₱ 24,630.00
400 kW during the day
and 200 kW at night. Next 10000 kWh 10000 kWh x ₱ 4.272/kWh ₱ 42,720.00
However, because of an Additional kWh Remaining 108000 kWh x ₱ 425,736.00
₱ 3.942/kWh
abnormality in plant
Subtotal ₱ 510,183.60
operation, demand power
increases to 1200 kW over
a 15 min. period on one
day during the month.
Determine the total
monthly charge based on
the rate schedule provided:
Example 2:
A small manufacturing
plant on a single three-
Demand Charge Solution Rate
phase service consumes
126,000 kWh of electrical First 25 kW of month 25 kW x ₱ 531.00/kW ₱ 13,275.00
energy over a billing Next 475 kW of month 475 kW x ₱ 477/kW ₱ 226,575.00
month period. Peak Next 1000 kW of month Remaining 700 kW x ₱ 315,000.00
demand is measured at ₱ 450.00
400 kW during the day Subtotal ₱ 554,850.00
and 200 kW at night.
However, because of an Total Monthly Charge:
abnormality in plant ₱ 510,183.60 + ₱ 554,850.00
operation, demand power
increases to 1200 kW over Total = ₱ 1,065,033.60
a 15 min. period on one
day during the month.
Determine the total
monthly charge based on
the rate schedule provided:
Demand Limiting
- Is accomplished by disconnecting loads that are not needed during periods of high demand.

Load Shedding
- Is a method by which nonessential equipment and appliances are deliberately switched off to
maintain a uniform and thus limit demand.

Load Shifting
- Moves nonessential loads to periods of low demand. In small installations, load shedding and
shifting may be accomplished manually by scheduling the start up and shutdown of a piece of
equipment during certain periods of the day when known peaks occur.

Peak shaving
- Energy storage and alternate sources of energy can also be used to reduce demand peaks.
Time-of-Use Rates
- Rewards the users for reducing
power consumptions during
periods when electrical demand is
highest and a lower rate for the
remainder of the year. In most
climates, this peak period occurs
during the midday and early
evening hours during the cooling
season, because the weather is
hottest and power consumption is
greatest.
Additional Charges

- Additional Surcharges for service and fuel adjustment may also be assessed. The service or
billing charge covers the cost of metering and bill collecting activities such as meter reading,
preparing, and mailing billing statements. This charge is assessed even if no electricity was
consumed.
- The fuel adjustment charge reflects periodic changes in the cost of purchasing, delivering,
handling and storing raw fuel (e.g coal and natural gas) that is used to produce electricity. It
is typically applied to each kilowatt consumed.
END OF PRESENTATION
THANK YOU!