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Electricity Rates Basic Charge: $3.95 per month First 3,500 kilowatt hours (kWh): $0.04 per kWh All additonal kilowatt hours: $0.07 per kWh If a customer uses 4,000 kilowatt hours in the month of May, what will be the charge on the bill?
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User has to pay the Basic Charge always , so we begin with $3.95 then for first 3,500 kWh he pays 3,500 x $0.04 additional kWh left = 4000 - 3500 = 500 so for these 500 kWh he pays 500 x $0.07
so over all he pays $3.95 + $(3500 x 0.04) + $(500 x 0.07)
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