(Answered) A petrochemical mixing facility pays 007 per kwh for

Management Studies

A petrochemical mixing facility pays $0.07 per kWh for electric energy, and $6.66 per kW/mo for peak electrical demand. The facility also has a ratchet clause, where the facility is charged either: 80% of their highest demand peak for the last 12 months, or 100% of the current month's peak demand, whichever is greater.

The peak demand (in kW) for the last 12 months is:

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

900 735 680 695 740 720 710 650 660 690 685 710

Once a year in January, the facility tests their large fire suppression system pump during the afternoon, by running them at full load for 4 hours.

The pump size 300hp (224 kW).

What are the estimated cost savings by scheduling the tests to be run by at night, when no production processes are occurring.

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Business Management, Management Studies

Category:- Business Management
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