How to Calculate October Electric Bill With Ratchet Clause, kVAR Charges, and Sales Tax?

The discussion centers on calculating the total electric bill for October using a rate structure that includes billing demand charges, energy consumption rates, kVAR charges with an allowed threshold, a ratchet clause based on peak demand from summer months, and a utility sales tax. The key parameters are $12.00 per kW of billing demand, $0.0535 per kWh energy charge, allowed kVAR at 70% of billed demand with excess billed at $0.85 per kVAR, a 5% sales tax, and a ratchet clause set at 90% of the highest recorded kW from June to August. The October actual demand is 1,000 kW, actual kVAR is 800, and consumption is 300,000 kWh. Previous peak demands were June 1,150 kW, July 1,350 kW, and August 1,300 kW. The ratchet clause sets the billing demand at 1,215 kW (90% of 1,350 kW). The allowed kVAR is 70% of 1,215 kW = 850.5 kVAR, so no excess kVAR charge applies since actual kVAR is 800. The total cost calculation involves demand charge ($12 × 1,215 kW), energy charge ($0.0535 × 300,000 kWh), and applying 5% sales tax on the subtotal. The forum responses include unrelated discussions on electricity rates in other regions, energy-saving behaviors, and some debate about the nature of the question, but no direct step-by-step solution was provided.
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