Question

One recent cost analysis report indicates that electricity from hydroelectric power can be produced for about $0.05 per kWh , while electricity from conventional coal-fired power plants can be produced for an average of about $0.11 per kWh . Calculate the percent change in the cost of electricity for a typical house resulting from a switch between conventional coal-fired power plants to hydroelectric power. Show your work.

Answer 1

NB: Check the remainder of the question in the attached file

Answer:

% change in the cost of electricity for a typical house = 54.55%

Explanation:

A typical house uses 10,900 kWh of electricity per year

Average cost of electricity production from hydroelectric power = $0.05 per kWh

Cost of production of electricity from hydroelectric power in 1 yr= $0.05 * 10900 = $545

Average cost of electricity production from conventional coal-fired power plant = $0.11 per kWh

Cost of production of electricity from hydroelectric power in 1 yr= $0.11 * 10900 = $1199

Change in the cost of electricity due to the switch in power source = $1199 - $545 = $654

% change in the cost of electricity = (654/1199) * 100

% change in the cost of electricity = 54.55%