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LarryB gravatar image
EWB USA Energy

The sliding scale Martinager noted - "First 45 Kva at US$0.024/Kva Next 225Kva at US$0.112/Kva Therefter 0.150/Kva " is fairly typical since the kVA demand of a customer dictates the size of the transformer and contributes to the wire size of the distribution path, along with the other customers kVA demand on that circuit.

Most U.S. homes, even in deep south with air conditioning, have demand under 10-15 kVA, so only larger commercial or industrial customers anywhere would be expected to exceed 45 kVA demand. The energy charge is the cost per kW and relates back to the cost to produce power. The kVA charge portion of the bill really relates to the cost to transport and deliver the power to the customer.