Question-and-Answer Resource for the Building Energy Modeling Community
Get started with the Help page
Ask Your Question

site screen cost electricity

asked 2018-08-09 13:16:05 -0500

youssra gravatar image

updated 2018-08-10 11:09:28 -0500

Can you explain to me "fixed USD/month" and "marginal USD/kWh"? Where I can enter the cost of 1 kWh of electricity?

edit retag flag offensive close merge delete

1 Answer

Sort by » oldest newest most voted

answered 2018-08-09 19:35:09 -0500

updated 2018-08-09 19:35:50 -0500

If you use 1000 kWhs in a month and your utility bill is 100 USD, then your average electricity rate is 100/1000 = 10 cents/kWh. If your bill contains a monthly fixed charge of 20 USD that is independent of how much electricity you consumed, then the marginal electricity rate is (100 - 20)/1000 = 8 cents/kWh.

If you simply used the average electricity rate of 10 cents/kWh in a tool like BEopt, you'd get incorrect results. For example, for a month with 2000 kWhs consumption, it’d incorrectly calculate a utility bill of 2000 * 0.10 = 200 USD using the average rate when it is instead 20 + 2000 * 0.08 = 180 USD. In other words, it’s important to calculate utility bills using fixed charges and marginal electricity rates, not average electricity rates.

edit flag offensive delete link more

Your Answer

Please start posting anonymously - your entry will be published after you log in or create a new account.

Add Answer


Question Tools

1 follower


Asked: 2018-08-09 13:16:05 -0500

Seen: 14 times

Last updated: Aug 10