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QUESTION

Consider the Block Energy Rate structure defined below: Block 1:065/kWh for the first 1100 kWh + 200 kWh per kW demand Block 2:

Consider the Block Energy Rate structure defined below:

Block 1:  $0.065/kWh for the first 1100 kWh + 200 kWh per kW demand

Block 2:  $0.045/kWh for all additional energy

What is the avoided cost of electrical energy?

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