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A petrochemical mixing facility pays $0.07 per kWh for electric energy, and $6.66 per kW/mo for peak electrical demand. The facility also has a...

  1. A petrochemical mixing facility pays $0.07 per kWh for electric energy, and $6.66 per kW/mo for peak electrical demand. The facility also has a ratchet clause, where the facility is charged either: 80% of their highest demand peak for the last 12 months, or 100% of the current month's peak demand, whichever is greater.

       The peak demand (in kW) for the last 12 months is:

          Jan. Feb.  Mar.   Apr. May June  July  Aug. Sept. Oct. Nov. Dec.

          900 735    680   695  740  720   710   650   660   690  685  710

          Once a year in January, the facility tests their large fire suppression system pump during the afternoon, by running them at full load for 4 hours. 

          The pump size 300hp (224 kW).

What are the estimated cost savings by scheduling the tests to be run by at night, when no production processes are occurring?

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