Lightning wrote:Yeah I agree with Smitty.. 6 cents per KW doesn't seem right.. Sure mine is 6 cents per KW + 4 cents per KW supplier fee + 2 or 3 cents whatever plus a charge just to have it on.. So my TRUE cost per KW is like 12.5-14.5 cents per KW depending on the variable supplier fee. I think you might need to take another look at that

Divide the total dollars by your total KW usage for the month to get your real cost per KW. I think you will find that your break even point is much higher...

OK, here is where I made my

MAJOR mistake. I

assumed that our electricity "service and distribution fees" were fixed cost items and then the KWH's of electricity were added on top of that at only 6 cents per KWH. Boy was I wrong. As it turns out, the various service and distribution fees are keyed to the KWH's consumed by a multiplicative factor, so the various service and distribution fees are linearly variable (as opposed to fixed).

For me it appears that on average 2.06 x cost of KWH's consumed = Total Electricity Bill

Therefore: service and distribution fees alone = 1.06 x actual cost of KWH's consumed (at 6 cents per KWH in my case)

Adding it all together, my "effective" cost per KWH is therefore 12.36 cents, and

this changes everything. Coal for me is suddenly very cost effective again. My break even point for anthracite cost equality to electricity is actually about $494 per ton. My savings are in the neighborhood of $1,200 per year.