rstofer sounds a bit more qualified than I. I took one power systems class years ago.
You don't need engineering, just go through the logic and you see that it can't work unless you make massive and totally unfounded assumptions. The answer is calculated as demonstrated by applying two conditions that do not occur together.
Let's try to go through it piece by piece. AFAIK, I didn't make any assumptions, I took what was given.
1) I guess we can agree that "units" is really
MWhrs kWhrs but it doesn't matter for this problem because everything is measured in "units".
2) "The factory is charged $0.025 per unit" for energy and uses 520,000 units ->
$13,000 (I really dislike the wording of "A factory has an average demand of 520,000 units" when "units" are energy and demand is really power. It should say "A factory has a consumption of 520,000
MWhrs kWhrs" - but that is just semantics. Poor wording but ok...
3) There is a demand penalty above 18 MW and the factory has a maximum demand of 20 MW which we get from the 25 MVA at 0.8 pf. Remember, these are the peak numbers at the end of the week, not average values. Demand has been up and down, pf has been all over the map but, at the end of the week, the plant looks like 25 MVA at 0.8 or 20 MW. The excess demand is 20 MW - 18 MW or 2 MW which is 4 blocks of 500 kW demand.
Each block is charged at $0.002 so the penalty is $0.008 * 520,000 ->
$4160.
The
subtotal is $13,000 + $4,160 =>
$17,160 Every number, up to this point is straight out of the problem statement, no assumptions of any kind.
4) The power factor penalty is added to the subtotal (stated in the problem) and is based on the minimum power factor of 0.6 as it is the minimum below 0.8. So, we have 0.2 units of pf penalty (0.8 - 0.6) which is 4 increments of 0.05. Multiply the 4 increments times 0.03 (penalty percentage) * $17,160 (subtotal so far) =>
$2,059.205) Now add up the subtotal and the pf penalty $17,160 + $2,059.20 =>
$19,219.20I believe the book has the right answer, I'm pretty confident in my number crunching and this method of calculating power bills is fairly common. You buy the energy, you pay a charge for maximum demand and another charge for power factor below 0.8. Around here, the pf penalty is based on the average, not some minimum or maximum but the problems says minimum, so be it.
I don't see where I made any assumptions, every number is straight out of the problem statement and it seems to work out. I'll stand by it until somebody knocks me over.