Discussion
Match the charge with what it recovers.
1. Demand charge 2. Energy charge 3. Cross-subsidy surcharge
P. Fuel and variable cost Q. Cost of capacity held ready R. Subsidy the departing consumer was providing
Answer: B
Each component of a bill answers to a different cost, and knowing which is which tells the consumer which measure reduces it. Cutting units does nothing to a demand charge and cutting the peak does little to an energy charge.
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