3-3 Cost of Energy

Review: Units of Power and Energy

Power is defined as how much energy is used per unit of time:

If we rearrange the equation to solve for energy, we get this:

When we're looking at a word problem, we need to make a decision about what set of units to use: base SI (metric) units, or "convenient" units for cost.

Here's when to use which set of units.

Use base units when...

  • it's a small device, like a single light bulb or small appliance

  • it's operating for a short period of time, on the order of seconds

  • there's going to be a small amount of power involved, measured in watts

Use convenient units when...

  • it's a large device or a whole house

  • it's operating for a long time, on the order of hours or days

  • there's a big amount of power involved, measured in kilowatts (or bigger)

Quick check

Which set of units would you use in each problem? Once you've chosen your units, use the power formula to solve the problem.

  1. A household has an average power of 14 kW of power in a day. How much energy did they use?

  2. A light bulb consumes 88 J of energy over 12 seconds. What is its power rating?

How much does electricity cost?

The short answer is: it depends. (But sometimes a short answer isn't quite enough, is it?) Either way, though, people pay for their energy by the kilowatt-hour, not the joule. That would just be silly.

A lot of people in Ontario buy their energy using time of use (TOU). That means that, depending on when the energy is used, it will cost a different rate. As you can see, the price also depends on what time of year it is.

Original source: oeb.ca

There are three different prices for electricity:

  • on-peak is the highest price... this happens when the demand for electricity is the highest

  • off-peak is the lowest price... this happens when demand is lowest

  • mid-peak is in the middle for both, as the name suggests

All of this is driven by the idea of supply and demand: when the demand for something is the highest, and/or there is a smaller supply of something, the price will be higher. This is true for a lot of things, and in Ontario a lot of people buy their electricity this way.

For example, dishwashers will often have a "Delay Start" button. Here's a button that allows you to delay the start of the dishwasher cycle by either two or four hours:

If you're washing a load of dishes after dinner, does it really matter if they're being washed at 6:30 pm, which might be either mid- or on-peak, or at 11:00 pm, when it's definitely off-peak and therefore cheaper? Probably not, so go ahead and save some money. Pennies turn into dollars pretty quickly.

Quick check

Determine if the following days and times are on-, mid- or off-peak: (a.) Sunday at 4:00 pm, (b.) Tuesday at 8:30 am in July, (c.) Thursday at 6:00 pm in January.

Calculating cost of energy

Example: A microwave oven has a power of 1.3 kW, and over a month it is used for a total of 6.5 h.

(a.) Find the toal amount of energy used.

(b.) If energy costs $0.15 for each kW·h, find how much it cost to run the microwave oven.

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(a.) Here we use the formula P = E/t, but we rearrange it and use the E = Pt version. Also, we look at the units and decide that it's better to use the "convenient" units of kW·h, kW and h.

P = 1.3 kW

t = 6.5 h

E = ?

E = Pt = (1.3 kW)(6.5 h) = 8.5 kW·h

(b.) We can think this one through without using a formula, really... if each kW·h costs $0.15, and we buy 8.5 of them...

total cost = ($0.15)(8.5) = $1.28 (rounded to the nearest cent)

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As of December 2022, here are the prices in Ontario for time-of-use (TOU) electricity:

Original source: oeb.ca

Note that these prices are given in cents per kilowatt-hour, not dollars. Be aware of this when doing these calculations.

Example: In a week, a household uses 78 kW·h of off-peak energy, 35 kW·h of mid-peak energy, and 122 kW·h of on-peak energy. Calculate the total cost of the electricity, given the prices in the chart above. Express the answer in dollars, rounding to the nearest cent.

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A good approach is to do the small calculations in pieces, then put the pieces together to get a final answer.

Off-peak cost: (7.4¢)(78) = 577¢ = $5.77

Mid-peak cost: (10.2¢)(35) = 357¢ = $3.57

On-peak cost: (15.1¢)(122) = 1842¢ = $18.42

Total cost: $5.77 + $3.57 + $18.42 = $27.76

Practice

The basics

  1. A clothes dryer has a power rating of 2.8 kW. If it is on for a total of 39 h, find the energy used by the dryer.

  2. If the cost of electricity is 7.4¢ per kilowatt-hour, determine the cost to use the dryer in the previous question. Answer in dollars, rounded to the nearest cent.

  3. When is electricity the cheapest: at 9:00 pm in March, noon in August, or 4:00 pm in December? When is it the most expensive out of those three choices?

Extensions

  1. Are there any other major appliances in your home that have a time-delay feature? (Hint: look in the laundry area.)

  2. Look at when the on-peak pricing occurs in the summer. What do you think is the major reason for this?