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The Hopkinson demand tariff charges the consumer

  • A.a charge on reactive energy in addition to active
  • B.a demand charge plus an energy charge
  • C.a single rate for all energy consumed
  • D.a charge on the connected load alone

Answer: B

Correct answer: a demand charge plus an energy charge

The Hopkinson tariff is the classical two-part form: a charge per kW or kVA of maximum demand plus a charge per kWh consumed. The two parts correspond to the two kinds of cost the utility incurs, capacity and energy, which is why it remains the basis of almost every industrial tariff.

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