A factory is on a rate schedule that has an on-peak and off-peak energy and demand clause (on peak is the months of June, July, and August). The utility rates are $0.06 per kWh off-peak and $0.15/kWh on-peak.

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A factory is on a rate schedule that has an on-peak and off-peak energy and demand clause (on peak is the months of June, July, and August). The utility rates are $0.06 per kWh off-peak and $0.15/kWh on-peak. Likewise, the demand charges are $5.00/kW off-peak and $20.00/kW on-peak. Demand is the maximum 15-minute average peak demand as recorded by the utility. In addition, the utility requires a power factor of at least 90%. Anything below 90% is penalized proportionally. The utility also has a 90% ratchet clause applied to the plant. The ratchet was reset in July (inclusive). PF = power factor

The plant has the following utility readings:

July 1,523 kW actual demand; 256,000 kWh; PF = 0.82

August 1,350 kW actual demand; 239,000 kWh; PF = 0.96

September 878 kW actual demand; 132,000 kWh; PF = 0.88

Based on the factors above, determine energy and demand electric bill charges for each month. (25 pts)

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