A consumer has an annual consumption of 1200 MWh with a maximum demand of 2.4 MVA. The

Question:

A consumer has an annual consumption of 1200 MWh with a maximum demand of 2.4 MVA. The maximum demand charge is $30 per kVA per annum, and the energy charge per kWh is 4 cents.
(a) Determine the annual cost of energy.
(b) Calculate the charge per kWh with a flat-rate tariff if the revenue to the utility company is to remain the same as for the two-part tariff.