Segregation of hydroelectric power costs

THE PRODUCTION COST of electric power is made up of the power or demand cost per kilowatt and the energy cost per kilowatt-hour. The relative amount of each of these items which make up the total cost of power at the power station determines the cost at any load factor. The above segregation of the annual production cost of power is essential in determining the power rates and the economic design of the production plants of an electric system.