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Comparing an interruptible load contract with a peaking generator as a means of meeting a rare peak, the contract

  • A.requires no metering at the consumer's premises
  • B.costs nothing when it is not called upon
  • C.provides a more certain reduction than any generator
  • D.increases the utility's energy sales

Answer: B

A generator built for fifty hours a year carries its capital cost for all 8760, whereas the contract is paid a retainer and an energy rate only when used. Its reliability is generally lower than a generator's, which is the trade.

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