CHAPTER 1

ELECTRICAL THEORY
1.1

HISTORY
OF
ELECTRICITY
TIMELINE

Ewald Georg von

William Gilbert Kleist
Static electricity • coined the term electricity • German Inventor
through rubbing from electricus - “produce
Peter van
an from amber friction” (Latin)
Musschenbroek
amber with a and elektor - “burning sun”
• Dutch physicist
piece of
Otto von Guericke both invented an
wool or fur
• German experimenter electrical storage device,
(Thales)
• built the first electric a jar coated inside and
generating machine outside.
TIMELINE

Luigi Galvani
Benjamin kite experiment • Italian anatomy professor
Franklin conducted by • observed that a discharged static
• American Franklin ; electricity made a dead frog’s leg
inventor and proving twitch
statesman electricity and Alessandro Volta
• attractive force lightnings • built voltaic pile/electric cell or
and repulsive similarity battery
force
TIMELINE

Andrea Marie Ampere

Hans Christian Michael Faraday
• coil of wires acts as a magnet
Oersted • developed a
when there is an electrical
• Danish crude electric
current.
physicist D.F. Arago motor
• discovered that • invented the electromagnet. Michael Faraday &
magnetic field Joseph Henry Henry
surrounds a • demo of electromagnetic • electric generator
current - device that can lift over a was invented to
carrying wire. thousand pounds power the motor
 1831
Samuel Morse James Prescott Joule,
• “Morse Code”. Gustav Robert Kirchoff and
• an electromagnetic telegraph James Clerk Maxwell
and a code of electrical • developed mathematical
impulses relationships concerning
electrical circuiting.

Charles de Coulumb Georg Simon Ohm

• measured the amount of • formulated a law- "Ohm's Law"
electricity and magnetism. between volts, currents (amps)
and resistance.
TIMELINE

• limited power stations

The ideal Invention
incandescent
use of of arc lights • Edison’s design is the
lamp basis in distribution of
electricity for lighting developed electricity.
was streets
• DC system could not
electric be economically
transmitted over long
lighting
distance.
only.
TIMELINE

George
Westinghouse
General Nikola Tesla • bought Tesla’s first alternating power
Electric • experimented alternating station operarion
Company generators current
-demonstrated system.
L. Caulard and
streetlights and Large scale
J.D Gibbs
lamps in London electric power
• announced distribution
and New York first
City Commercialization
transformer
of electric power
TIMELINE

Alternating United States Rural Electric California

current motor large cities Administration legislated to
was introduced had deregulate electric
(REA)
and became electricity, 10% power business in
commonly used in rural areas established states and
in buildings. hundreds of established a
had
electric competitive
electricity.
cooperatives market.
TIMELINE

- Bankruptcy of Power failure

Power failure in
state utilities occurred
northeast United
again in
States and
- Californians Northeast
Canada
suffered from United states
electricity and Canada
shortage and
blackouts.
1.2

ELECTRICAL
THEORY
 CLASSICAL THEORY:
FLOW OF ELECTRONS
REVIEW:
•
 •

•
 MODERN THEORY:
FLOW OF CHARGED PARTICLES
Electricity is tied to smaller subatomic particles that possess either
a positive or negative electromagnetic charge.

Only the subatomic charged particles, those with an

electromagnetic charge, are associated with electricity.

Electromagnetic force between two charged particles > gravitational

force between the two, therefore, the flow of electricity = flow of
charged subatomic particles caused by these repelling and
attracting forces.
 ELECTRICAL CURRENT ELECTRICITY
-the rate of flow of -movement of subatomic
negative charges of the particles (electrons or charged
conductor particles) that is attributable to
the existence of a charge.

Actual movement
of a single Averaging about one-half inch per second.
subatomic particle However, the chain-reaction effect of current flow
occurs very rapidly, at about the speed of light
(about 186,000 miles or 300,000,000 m/s).
 INSULATOR

CONDUCTOR SEMICONDUCTOR
CONDUCTOR INSULATOR SEMICONDUCTOR
Producing Current Flow
1. Static electricity from friction
Charge of static electricity caused by the heat from friction thus
imbalance transferring of electrons from one object to another
occurs.
Example :
• comb becomes electrostatically
charged after hair brushing
• soles of shoes become statically
charged once they are rubbed
across carpet
2. Thermoelectricity
Thermoelectric Charge is produced when the two joined
dissimilar metals are heated. Charge dissipates when the
materials cool.
Thermocouple
• consists of two dissimilar metal wires,
joined together at one end
3. Piezoelectricity 4. Electrochemistry
• electricity from pressure, the • electricity from a chemical
electrons becomes negatively
reaction
charged due to pressure while
• a galvanic reaction
the side losing the electrons
becomes positively charged.
produces opposite
electrical charges in two
dissimilar metals when
• a piezoelectric charge is
placed in a certain chemical
produced from crystalline
solutions.
substances when a force
deforms or strains the
substance.
5. Photoelectricity 6. Magnetoelectricity
• electricity from light - • magnetic field can drive
releases energy that can electron flow resulting
cause atoms to release electricity from magnetism
electrons when a small • the forces of the field causes free
particles of light called electrons to move in one direction
photons strike a material. across the conductor when a good
conductor moves through a
magnetic field.
• reversed direction of conductor
movement → reversed direction of
electron flow
Electromagnetism study
Notable People
1.3

UNITS
OF
ELECTRICITY
3 BASIC UNITS OF ELECTRICITY
VOLTAGE (E)
AMPERAGE (I)
RESISTANCE (R)
VOLTAGE it is the driving force
behind the current flow,
from the results of
difference in charges,
creating an electrical
pressure which moves the
current in one direction
 AMPERAG
the measurement of the
E
rate of current glowing in
a closed electrical
system, where the unit is
called ampere(A), which
is frequently called the
amp
 RESISTANCE

the ability of a conductor to

resist current flow, where the
unit used is ohm(Ω).
 OHM’S LAW
the formula used to
calculate the
relationship between
voltage, current, and
resistance in an
electrical circuit.
Where:
E = Voltage I = Ampere R = Resistance
 POWER
the rate at which work is accomplished; it is
work or energy released divided by time. The
electrical unit of power is watt.
1 horsepower(hp) = 746 watts
1 watt(W) = 3.413 Btu/hr
1 kilowatt(kW) = 1 000 W
1 megawatt(MW) = 1 000 00 W
 On a direct current
circuit, voltage, and
amperage are related
to wattage through
the DC power
equation, also known
as Joule’s Law
POWER = VOLTAGE (E) X AMPERAGE
EXAMPLE
ENERGY
electrical energy is caused by
moving electric charges called
electrons. The energy consumption
value is determined when the
power used by an appliance is
multiplied to the amount of time
that the unit operates.
Electrical energy consumption (q) in
watt-hours may be determined by the
following expression:
where power (P) is
expressed in watts, and
time in (t) in hours of
operation
1.4

ELECTRICAL
CIRCUITS
ELECTRICAL CIRCUITS
a continuous path along
which an electric current can
flow. It is mainly composed of:
• Power Source • Electrical
• Load Components
• Conductors • Optional Devices
 TYPES OF
ELECTRICAL CIRCUITS

• Closed Circuits • Series Circuits

• Open Circuits • Parallel Circuits
• Short Circuits
 CLOSED CIRCUITS
an uninterrupted path that allows a
continuous
flow of
electricity
through an
electric circuit
 OPEN CIRCUITS
path of
current flows
is interrupted
that prevents
flow of current
through an electrical circuit
SHORT CIRCUITS an inadvertent
shortcut
develops in a
circuit that
permits current
flow through
intentional path
 SERIES CIRCUITS
requires fewer
connections, if
one lamp fails;
the circuit
becomes open
and all lamps go
PARALLEL CIRCUITS
if one lamp
fails, the circuit
remains
closed and all
other lamps
remain lit
GUSTAV KIRCHHOFF
German Physicist, who
established two laws
known today as
Kirchhoff’s Laws.
Voltage Law and Current Law
KIRCHHOFF’S VOLTAGE LAW

the sum of potential differences

(voltages) in a complete circuit must
be zero
V1 + V2 + V3 + V4 = 0
KIRCHHOFF’S CURRENT LAW
when a charge enters a junction, it has
no place to go except to leave

I1 + I2 + (-I3 ) + (-I4 ) = 0
SERIES CIRCUIT PRINCIPLES
SERIES CIRCUIT PRINCIPLES
the total resistance of the circuit is
found by simply adding up the
resistance values of the individual
resistors

R1 + R2 + R3 = R total
SERIES CIRCUIT PRINCIPLES
the amount of current is the same
through any component

I1 = I2 = I 3 = I 4
SERIES CIRCUIT PRINCIPLES
the supply voltage in a series circuit is
equal to the sum of the individual
voltage drops

V + V + V + V = V
1 2 3 4 total
PARALLEL CIRCUIT
PRINCIPLES
 PARALLEL CIRCUIT
PRINCIPLES
the total resistance
1 1 1
____ = ____ + ____
in a parallel circuits Rtotal R1 R2
is less than any of
the individual
resistances
 PARALLEL CIRCUIT
PRINCIPLES
total amperage in a parallel circuit is
equal to the sum of the individual
branch of amperages
I1 + I2 + I3 + I4 = Itotal
 PARALLEL CIRCUIT
PRINCIPLES
components in a parallel circuit share
the same voltage

V1 = V2 = V3 = Vtotal
1.5
RELATIONSHIP
BETWEEN
MAGNETISM AND
ELECTRICAL
CURRENT
 WHAT IS MAGNETISM?
A phenomenon produced by the motion of
electric charges, which creates a magnetic
field. It is a force that can attract or repel
certain materials, particularly metals.
WILLLIAM GIBERT
He made the first actual
magnet and he is also
known as the father of
magnetism.
 HOW DO MAGNETS WORK?
• Magnetism is a physical
phenomenon by which a
substance is attracted or
repelled by a magnetic field.
 TYPES OF MAGNETISM
FERRIMAGNETISM
A type of permanent magnetism that
occurs in solids in which the magnetic
fields associated with individual atoms
spontaneously align themselves, some
parallel, or in the same direction.
FERROMAGNETISM
Is a physical phenomenon in which certain
electrically uncharged materials strongly
attract others.
ANTI-FERROMAGNETISM
In anti-ferromagnetic materials the
magnetic moments of neighboring
electrons point in opposite direction.
PARAMAGNETISM
A kind of magnetism characteristic of
materials weakly attracted by a strong
magnet, named and extensively
investigated by the British scientist
Michael Faraday in 1845.
DIAMAGNETISM
A kind of magnetism characteristic of
materials that line up at right angles to a
non uniform magnetic field and that
partly expel from their interior the
magnetic field in which they are placed.
 WHAT IS ELECTRICITY?
The presence and flow of electrical current.
Using electricity, we can transfer energy in
ways that make machines do work. Its best-
known form is the flow of electrons through
conductors such as copper wires.
RELATIONSHIP BETWEEN ELECTRICITY
AND MAGNETISM

The force of a magnetic field can produce

an electrical current in a conductor. Flow
of electrons or electric current, on the
other hand, produces a magnetic field.
MICHAEL FARADAY
An English physicist and chemist
whose experiments contributed
greatly to understanding
electromagnetism. Some of his
contributions to science are, Electric
motor, Discovery of Benzene,
Electromagnetic Induction,
Electromagnetic Generator,
Electrolysis, and Electromagnetism.
 ELECTROMAGNETISM
Electromagnetism is the interaction
between magnetism and electricity. It is
produced when electrical current flows
through a simple conductor, and as current
passes along the conductor, magnetic field is
formed along the whole conductor.
 ELECTROMAGNETIC INDUCTION
The process of generating an electric current in a
conductor by changing the magnetic field
around it. This occurs when a conductor moves
through a magnetic field or when the magnetic
field itself changes near the conductor. It is the
basic principle behind devices like generators
and transformers.
 MAGNETIC FIELD
It is the invisible region around a magnet or a
moving electric charge where magnetic forces
can be felt. Magnetic fields are essential in
phenomena like electromagnetism and are used
in various technologies, such as electric motors
and compasses.
 ACCELERATING CHARGE
An electric charge that is changing its velocity,
which can occur due to a change in speed,
direction, or both. When a charge accelerates, it
produces a changing electric field and a
changing magnetic field, which together creates
electromagnetic waves that propagate through
space.
1.6

DIRECT AND
ALTERNATING
CURRENT
DIRECT AND ALTERNATING
CURRENT
ELECTRIC CURRENT
is the rate of charge flow past a given point in
an electric circuit. The charge can be
negatively charged electrons or positive
charge carriers including protons, positive
ions or holes.
TYPES OF ELECTRICAL CURRENT

• DC - Direct Current
• AC - Alternating Current
DIRECT CURRENT

Direct current (DC) is a current flow in one

direction in an electrical circuit. It is always
from the negative to the positive terminals of
the power source, such as a battery.
 DC VOLTAGE VERSUS TIME

When a direct-current circuit is closed, the

voltage in the circuit climbs rapidly to a
constant voltage, which produces a steady
flow of current in one direction
EXAMPLE
For example, a battery provides 1.5V, which
can be described in mathematical equation
as:
V (t) = 1.5V
EXAMPLE
If we plot this over time, we see a constant voltage.
ALTERNATING CURRENT
Alternating current (AC) is a continuous
reversal of the direction of current flow such
that at one time current flow is in one
direction and another time it is in the reverse
direction. Direction of current flow reverses as
the polarity of the power source in the circuit
reverses.
ALTERNATING CURRENT
Alternating Current is used in most electronic
distribution for the main reason that it can be
transformed from one voltage to another.
Direct Current on the other hand is more
difficult and since there is a limitation to its
switches and circuit breakers which are also
expensive.
NIKOLA TESLA (1856- 1943)
a Serbian-American engineer and physicist.
He invented the first alternating current (AC)
motor and developed AC generation and
transmission technology.
WAVEFORMS
A waveform is a representation of how AC
varies with time. The sine wave is the most
common type of AC. The AC in most homes
and offices has an oscillating voltage that
produces a sine wave.
SINE WAVE
As the coil rotates the voltage
decreases according to the
sine of the angle until the
conductor is parallel to the
magnetic field. Further
rotation then increases the
voltage until once again it is
at a maximum (but in the
opposite direction).
SQUARE WAVES
These are typically generated
by metal–oxide– semiconductor
field-effect transistor (MOSFET)
devices due to their rapid on–
off electronic switching
behaviour, in contrast to BJT
transistors which slowly
generate signals more closely
resembling sine waves rather
than square waves.
TRIANGLE WAVE

Triangular wave is generated by alternatively charging and

discharging a capacitor with a constant current. This is
achieved by connecting integrator circuit at the output of
square wave generator as shown in the figure above. Triangle
waves are useful for testing linear electronics like amplifiers.
SINGLE-PHASE ALTERNATING
CURRENT POWER
A single-phase (1Φ) alternating current distribution
system refers to a system in which all the voltages of
the supply vary in unison. A basic system typically has
two conductors: one is neutral and the other carries
current (the hot or live conductor).
THREE-PHASE ALTERNATING
CURRENT POWER
A three-phase (3Φ) alternating current distribution
system consists of three separate lines of single-phase
power with each line out of phase by 120° (1 ⁄3 of a
cycle). Basic threephase circuits typically have three
current-carrying (hot or live) conductors plus one
grounded (neutral) conductor.
 HOW DO SINGLE AND THREE
PHASE SYSTEMS WORK?
Single-phase systems use alternating current electric
power in which the voltage and current flow changes
in magnitude and direction in a cyclical fashion,
typically 60 times per second. In the U.S., singlephase
voltage is 120 Volts, while several countries use 230
Volts as the standard. A variation of single phase,
called split phase system.
 HOW DO SINGLE AND THREE
PHASE SYSTEMS WORK?

Split phase system

There are two voltage sources, 180 ° phase shifted from each
other, which power two series=connected loads.
 HOW DO SINGLE AND THREE
PHASE SYSTEMS WORK?
In three-phase systems, the power circuit combines three
alternating currents that vary in phase by 120 degrees. As a
result, the power would never drop to zero, making it possible to
carry more loads. In a typical 120 Volts power arrangement, this
is equivalent to three 120 Volts singlephase power circuits and
one 208 Volt power circuit. Three-phase power supplies are
more efficient. A threephase power supply can transmit three
times as much power as a single-phase power supply, while only
needing one additional wire (that is, three wires instead of two).
1.7

TRANSFORMING
VOLTAGE
AND CURRENT
TRANSFORMERS
TRANSFORMERS
 THE AC CIRCUIT
1. ALTERNATING 2. CHANGING
VOLTAGE CURRENT FLOW
THE CURRENT FLOW
IN AN AC CIRCUIT, (RATE AND DIRECTION)
THE VOLTAGE IN AN AC CIRCUIT
DEPENDS ON THE
PROVIDED BY THE VOLTAGE. WHEN THE
POWER SOURCE POLARITY OF THE
DOES NOT STAY VOLTAGE CHANGES, THE
DIRECTION OF THE
CONSTANT. CURRENT FLOW
REVERSES.
SINE WAVE
TRANSFORMERS
THE FLOW OF
ELECTRONS
GENERATE A
CURRENT
DEPENDING ON
THE POWER
THE CURRENT EMMITS SOURCE.
A MAGNETIC FIELD.
TRANSFORMERS

MAGNETIC FIELD GENERATED BY A DIRECT CURRENT

IS CONSTANT
TRANSFORMERS MAGNETIC FIELD
GENERATED BY AN
ALTERNATING
CURRENT FLACTUATES
ALONG WITH THE
ALTERNATING
CURRENT. THEREFORE
IT
INCREASES/DECREASE
S IN STRENGTH.
 TRANSFORMERS
ADDING CABLES COMBINES
THEIR MAGNETIC FIELD
TOGETHER MAKING IT
STRONGER.

WRAPPING OUR CABLE

INTO A COIL, THE
MAGNETIC FIELD WOULD
BECOME EVEN STRONGER.
TRANSFORMERS

BASIC TRANSFORMER
 TRANSFORMERS

PLACING AN IRON CORE MAKES OUR BASIC

TRANSFORMER MUCH MORE EFFICIENT!
TRANSFORMERS
PRIMARY VOLTAGE
CAN BE STEPPED UP
TO A HIGHER
SECONDARY VOLTAGE
OR STEPPED DOWN TO
A LOWER SECONDARY
VOLTAGE BASED ON
THE RATIO OF NUMBER
OF WINDINGS!
1.8

IMPEDANCE
AND POWER
FACTOR
INDUCTORS
AN INDUCTOR IS A
COMPONENT IN AN
ELECTRICAL CIRCUIT
WHICH STORES
ENERGY IN ITS
MAGNETIC FIELD.

THEY RESIST CHANGES

IN CURRENT.
WHEN CURRENT INCREASES

An Inductor stops it with an opposing force

WHAT THEY LOOK LIKE
 WHERE DO WE USE
THEM?
1.MOTORS
2.TRANSFORMERS
3.LIGHT
BALLASTS
 WHAT IS INDUCTANCE?
Inductance is the tendency of an electrical conductor to
oppose a change in the electric current flowing through it.

The unit of inductance in the SI system is in henry (H),

named after American scientist Joseph Henry
CAPACITANCE

• STORE
ELECTRICAL
ENERGY IN AN
ELECTROSTATIC
FIELD AND
RELEASE IT LATER
 WHAT IS IT MADE OF?
IT IS COMPOSED OF
METAL PLATES
SEPARATED BY AIR OR
A DIELECTRIC
MATERIAL SUCH AS
PAPER, CERAMIC, OR
MICA.
 WHAT IS IT USED FOR?
OF?

IT IS USED TO BLOCK DIRECT CURRENT WHILE

ALLOWING ALTERNATING CURRENT TO PASS.
WHAT IS CAPACITANCE?
It is the ability of a component or a circuit to
collect and store energy in the form of an
electrical charge. Capacitance value of a
capacitor is measured in farads (F).
THE CAPACITIVE AND INDUCTIVE EFFECTS
The inductive effect on a series AC circuit causes the
phase of the current to lag behind the phase of the
voltage—that is, peak amperage lags peak voltage.

The capacitive effect on a series AC circuit causes the

phase of the current to lead the phase of the voltage—
that is, peak voltage lags peak current.
 IMPEDANCE

Impedance (Z) is a measure of resistance to

current flow on an AC circuit due to the combined
effect of resistance, inductance and capacitance.
Impedance is measured in ohms (Ω).
Ohm's Law For AC Circuits
True Power factor (PF) on an AC circuit is the ratio of
working power (true power) measured in kilowatts
(kW), and apparent power, measured in kilovolt
amperes (kVA). Apparent power, also known as
demand, is the measure of the amount of power
used to run machinery and equipment during a
certain period. It is the simple product of voltage and
current. Therefore, it is expressed in volt amperes
(VA) or kilovolt ampere (kVA)
 True Power (kW)
Power Factor = ____________________
Apparent Power (kVA)
OHM’S LAW FOR AC CIRCUITS
THE BEER ANALOGY
1.9
COST OF
ELECTRICAL
ENERGY AND
POWER
 ENERGY
CHARGE
THE COST OF ELECTRICITY CONSUMED BY USERS
DURING A BILLING PERIOD, AS INDICATED BY THE
ELECTRIC METER.
 ELECTRIC
METER
A DEVICE THAT MEASURES AND
RECORDS THE ENERGY USAGE OF
A BUILDING OR ESTABLISHMENT.
ENERGY CHARGE
FORMULA
THE PRODUCT OF TOTAL ENERGY
CONSUMED (KWH) AND RATE FOR
ENERGY (P/KWH)
ENERGY CHARGE
FORMULA

₱
₱ = q X kWh
_____
ENERGY
ENERGY CONSUMPTION (q)

q = Pt
P=POWER (KW),
T=TIME OF USAGE (HR)
EXAMPLE: A 60W LAMP REMAINS LIGHTED FOR 24 HOUR A DAY FOR
30 DAYS. DETERMINE THE ELECTRICAL ENERGY CONSUMED OVER
THIS PERIOD. CALCULATE THE ENERGY CHARGE FOR THE BILLING
PERIOD AT A RATE OF P0.1172/KWH.
Solution:
q = Pt
= (60W) * ( 24hr/day) * (30 days/billing period)
= 43,200 Wh
q = 43,200 Wh (1kW / 1000 W)
q = 43.2 kWh
₱energy = q * (₱/kWh)
= 43.3 kWh / billing period ₱ 0.1172 / kWh
₱energy = ₱ 5.06/ billing period
SERVICE CHARGE

A FEE PAID FOR ELECTRICAL

OPERATIONS AND SERVICES
Example: A large residence consumes 1155 kWh of electrical energy
over a billing period. Determine the total charge for the billing period
based on the rate schedule as provided below:
Service Charge = P5.16 Energy Charge
First 1000 kWh of billing period = P0.117 per kWh
Next 2000 kWh of billing period = P0.109 per kWh
Solution:
Total Charge = ₱ 5.16 + (₱ 0.117/ kWh * 1000 / kWh)
+ (₱0.109/ kWh * 155 kWh)
= ₱ 5.16 + ₱117.00 + ₱15.90
Total Charge = ₱139.06
 POWER “DEMAND”
CHARGE
MAXIMUM DEMAND
is the user’s highest rate at which energy is
consumed (or power) in kilowatts over a small time
interval which is usually 15 minutes
 DEMAND CHARGE
• is the billing fee that is related to maximum
demand determined by maximum demand
multiplied to the rate for demand charge
(P/kW)

rate
________
₱ = power demand x
power
 RELATIONSHIP OF MAXIMUM
DEMAND & DEMAND CHARGE

• Depending on the billing rate, the high

demand charge may remain at that rate for 12
months even though the succeeding months
is significantly lower.
 PURPOSE OF POWER
“DEMAND” CHARGE

• To keep consumers from using too much

energy when energy is most used so that
there would be enough for all the consumers.
SAMUEL INSULL

• introduced power “Demand”

charge during the early 1900's
LOAD SHEDDING

• a process of reducing load on

something, especially the interruption
of an electricity supply to avoid excess
loads on the generating plant.
LOAD SHIFTING

• moves nonessential loads to periods

of low demand.
• Essentially moves electricity
consumption from one time period to
another.
PEAK SHAVING
• A strategy or technique where energy storage and alternate
sources of energy can also be used to reduce demand peaks.

A graph of the energy use in a

retail store. Peak use occurs as
the store opens for operations.
If some HVAC and domestic hot
water consumption could be
shifted to before 9 am, peak
usage could be dropped to
about 5 kW.
Time-of-us (TOU) Rates
• is a rate plan in which rates vary according to the time of day,
season, and day type (weekday or weekend/holiday).

An example of a TIME-
OF-USE (TOU) Rate.
How do time-of-use rates work?

• at times when electrical demands are low (i.e. in the

middle of the night) the rate paid to use electricity is
very low. However, at times when electrical demands are
high (i.e. the hot afternoon of a hot summer day) the rate
of electricity is much higher.
ADDITIONAL CHARGES

BILLING CHARGE
• covers the cost of metering and bill collecting activities
such as meter reading and preparing and mailing billing
statements.
• is assessed even if no electricity was consumed.
ADDITIONAL CHARGES

FUEL ADJUSTMENT CHARGE

• reflects periodic changes in the cost of purchasing,
delivering, handling, and storing raw fuel( e.g., coal,
natural gas) that is used to produce electricity.
• it is typically applied to each kilowatt consumed.