The correct answer is C. both (A) and (B).
In a Hopkinson demand rate or two-part tariff, the demand rate or fixed charges are dependent upon both the energy consumed and the maximum demand of the consumer. The demand rate is a charge per kilowatt of demand, and the energy charge is a charge per kilowatt-hour of energy consumed. The total charge for a customer is the sum of the demand charge and the energy charge.
The demand charge is intended to reflect the cost of the capacity that the utility must have available to meet the customer’s peak demand. The energy charge is intended to reflect the cost of the energy that the customer actually uses.
The Hopkinson demand rate is a common type of tariff used by electric utilities. It is designed to encourage customers to use energy more efficiently by charging them more for their peak demand. This can help to reduce the overall cost of electricity for all customers.
Here is a brief explanation of each option:
- Option A: The demand rate or fixed charges are dependent upon the energy consumed. This is true because the demand charge is a charge per kilowatt of demand, and demand is equal to the energy consumed divided by the time period.
- Option B: The demand rate or fixed charges are dependent upon the maximum demand of the consumer. This is also true because the demand charge is a charge per kilowatt of demand, and demand is equal to the maximum demand of the consumer divided by the time period.
- Option C: Both (A) and (B). This is the correct answer because the demand rate or fixed charges are dependent upon both the energy consumed and the maximum demand of the consumer.
- Option D: Neither (A) nor (B). This is not the correct answer because the demand rate or fixed charges are dependent upon both the energy consumed and the maximum demand of the consumer.