Ampere's Law Explained

Capacitance: Understanding the Ability to Store Electricity

Capacitance is an essential concept in electrical circuits, and it describes the ability of a capacitor to store electrical energy. Capacitors are electronic components used in many circuits to perform various functions, such as filtering, timing, and power conversion. Capacitance is a measure of a capacitor's ability to store electrical energy, and it plays a crucial role in the design and operation of electrical circuits. This article provides an overview of capacitance, including its definition, SI unit, and the difference between capacitor and capacitance.

What is Capacitance?

Capacitance is the ability of a capacitor to store electrical charge. A capacitor consists of two conductive plates separated by a dielectric material. The conductive plates are connected to an electrical circuit, and the dielectric material is placed between them to prevent direct contact. When a voltage source is applied to the plates, electrical charge builds up on the surface of the plates. The amount of charge that a capacitor can store is determined by its capacitance, which depends on the size and distance between the plates, as well as the dielectric constant of the material.

The energy storing capability of a capacitor is based on its capacitance. This means that a capacitor with a higher capacitance can store more energy than a capacitor with a lower capacitance. The energy stored in a capacitor is given by the formula:

Energy (Joules) = 0.5 x Capacitance (Farads) x Voltage^2

The ability to store energy is essential for many applications, including filtering, timing, and power conversion. Capacitors are commonly used in DC circuits to smooth out voltage fluctuations and prevent noise. They are also used in AC circuits to filter out high-frequency signals.

What is Capacitance and the SI Unit of Capacitance?

Capacitance is defined as the ratio of the electrical charge stored on a capacitor to the voltage applied to it. The SI unit of capacitance is the Farad (F), which is defined as the amount of capacitance that stores one coulomb of electrical charge when a voltage of one volt is applied. One Farad is a relatively large unit of capacitance, and most capacitors have values that are much smaller. Therefore, capacitors are often measured in microfarads (µF) or picofarads (pF).

The capacitance of a capacitor depends on several factors, including the distance between the plates, the surface area of the plates, and the dielectric constant of the material between the plates. The dielectric constant is a measure of the ability of the material to store electrical energy, and it affects the capacitance of the capacitor. The higher the dielectric constant of the material, the higher the capacitance of the capacitor.

What is the Difference Between Capacitor and Capacitance?

Capacitor and capacitance are related concepts but are not the same thing. Capacitance is the ability of a capacitor to store electrical energy, while a capacitor is an electronic component that stores electrical charge. A capacitor consists of two conductive plates separated by a dielectric material, and it is designed to store electrical charge. Capacitance is a property of a capacitor, and it determines the amount of electrical charge that the capacitor can store. Capacitance is measured in Farads, while the capacitor is measured in units of capacitance, such as microfarads (µF) or picofarads (pF).

What is an Example of Capacitance?

One example of capacitance is a common electronic component known as an electrolytic capacitor. These capacitors are used in a wide range of electronic circuits to store electrical energy, filter out noise, and regulate voltage. They consist of two conductive plates separated by a dielectric material, which is usually an electrolyte. The electrolyte allows for a high capacitance, which means that these capacitors can store a large amount of electrical energy.

Another example of capacitance is the human body. Although the capacitance of the human body is relatively small, it can still store a significant amount of electrical charge. This is why people can sometimes feel a shock when they touch a grounded object, such as a metal doorknob or a handrail. The capacitance of the human body is affected by several factors, including the size and shape of the body, as well as the material and proximity of the objects it comes into contact with.

Wattmeters measure electrical power in watts, monitoring energy use in industrial power systems. They provide accurate active power readings for efficiency and load management, utilizing voltage and current measurements to achieve precise results.

What are Wattmeters?

Wattmeters are instruments used to measure electrical power. They:

✅ Measure active electrical power in watts for various applications.

✅ Are used in industrial, commercial, and residential energy monitoring.

✅ Help optimize efficiency, manage loads, and ensure system safety.

A wattmeter measures instantaneous (or short-term) electrical power in watts, while a watthour meter accumulates that power over time and reports energy used (e.g. in kWh). Energy meters and smart meters extend this concept by recording consumption continuously for billing, load analysis, and energy audits.

Working Principle of Wattmeters

Electrical power is calculated using the formula:

P = E × I

Where:

• P = Power in watts

• E = Voltage in volts

• I = Current in amperes

In DC circuits, watts are sometimes expressed as volt-amperes (VA). In AC circuits, wattmeters measure true (or active) power, taking into account the power factor to compensate for phase differences between voltage and current. Unlike reactive power (measured in kvar) or apparent power (measured in kVA), active power is the usable portion that does real work. This relationship is often represented in the power triangle, where vector analysis explains how apparent, reactive, and active power interact.

Construction and Internal Components

A typical wattmeter consists of two main coil assemblies:

1. Current Coil (CC)

   • Heavy-gauge copper wire with low resistance.

   • Connected in series with the load to carry the circuit current.

2. Voltage Coil (VC)

   • Fine-gauge wire with high resistance.

   • Connected in parallel with the load to measure voltage.

The electrodynamometer, commonly referred to as a dynamometer wattmeter, is a classic analog device that operates on the principle of a motor. The interaction between the magnetic fields of the current and voltage coils produces a torque proportional to the power, causing the pointer to move over a calibrated scale. Understanding wattmeter principles is a foundation of basic electricity training, helping learners connect theory to practical power measurement.

Figure 1 – Construction of a dynamometer wattmeter showing current and voltage coil arrangement.

Types of Wattmeters

• Analog/Dynamometer – Durable, reliable, suited for laboratory and field measurements.

• Digital – Higher accuracy, data logging, and integration with monitoring systems.

• Clamp-on  – Measure power without breaking the circuit, ideal for quick diagnostics.

• Specialized  – Designed for RF power, audio power, or other niche applications.

In three-phase systems, wattmeters are often applied in accordance with Blondel’s theorem, which specifies the number of measurement elements required in multi-phase circuits. They are frequently used in conjunction with 3 phase electricity concepts to ensure balanced load distribution and optimal system efficiency.

Fig. 2. Power can be measured with a voltmeter and an ammeter.

Measuring Power in DC and AC Circuits

In DC circuits, power measurement can be as simple as multiplying voltage and current readings from separate meters.

Example:

If a circuit operates at 117 V DC and draws 1 A, the power is:

P = 117 × 1 = 117 W

In AC systems, especially with reactive or distorted loads, a wattmeter is essential because voltage and current may not be in phase. The device automatically accounts for the phase angle, providing accurate true power readings. Advanced digital wattmeters also compensate for harmonic distortion and poor waveform quality, providing more reliable measurements than older analog designs.

By measuring energy transfer in circuits, they also relate to other power measurement instruments such as ammeters, voltmeters, and multimeters, which measure supporting parameters needed for complete electrical analysis. Accurate wattmeter readings are crucial for diagnosing performance issues in 3-phase power networks, where the relationships between voltage and current are critical. By measuring energy transfer in circuits, they help explain fundamental laws of electromagnetism, such as Ampère’s Law, which underpins the interaction between current and magnetic fields.

Fig. 2. Power can be measured with a voltmeter and an ammeter.

Practical Examples and Load Considerations

A household iron may consume 1000 W, drawing 8.55 A at 117 V.

A large heater may draw 2000 W, or 17.1 A, potentially overloading a 15 A breaker.

In industrial settings, watt meters help prevent equipment overloading, reduce downtime, and improve energy efficiency.

Modern Wattmeter Applications

Today’s wattmeters are often part of smart energy monitoring systems that:

• Track energy consumption over time.

• Integrate with SCADA and IoT platforms.

• Enable predictive maintenance through power trend analysis.

• Support compliance with energy efficiency regulations.

Accuracy, Standards, and Advanced Considerations

Measurement accuracy is a crucial factor in determining wattmeter performance. Devices are often classified by a class of accuracy, with error limits defined by international standards such as IEC, ANSI, or IEEE. Regular calibration and testing procedures ensure watt meters continue to deliver reliable results in both laboratory and field conditions.

Modern digital watt meters feature true RMS measurement, which accurately captures distorted waveforms caused by nonlinear loads. This is especially important in power systems where harmonic distortion is present. In commercial and industrial environments, accurate wattmeter data support energy audits, load analysis, and regulatory compliance, making them indispensable tools for engineers and facility managers. Wattmeter usage is closely linked to the fundamentals of electrical energy, enabling precise monitoring for efficiency and cost control.

Key Advantages of Wattmeters

• Accurate real-time power measurement.

• Enhanced energy management and cost savings.

• Improved system reliability through overload prevention.

• Compatibility with both AC and DC systems.

Wattmeters remain a vital tool for measuring and managing electrical power. Whether in a simple residential circuit, a commercial energy audit, or a high-tech industrial monitoring system, they ensure that electrical systems run efficiently, safely, and cost-effectively. As technology advances, digital and networked wattmeters continue to expand their role, integrating into smart grids and energy-optimized infrastructures. 

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Geothermal electricity delivers renewable baseload power by converting subsurface heat through turbines, generators, ORC binary cycles, and heat exchangers, enabling grid integration, high capacity factor, low emissions, and efficient power plant control systems.

What Is Geothermal Electricity?

Geothermal electricity converts geothermal heat to power using turbines and generators for low-emission baseload.

✅ Uses steam, flash, and binary cycle power plant designs

✅ Employs ORC, heat exchangers, and closed-loop systems

✅ Provides baseload, high capacity factor, and grid stability

Geothermal Electricity is produced through geothermal power plants capturing the thermal energy contained in the Earth. Use of geothermal energy is based thermodynamically on the temperature difference between a mass of subsurface rock and water and a mass of water or air at the Earth's surface. This temperature difference allows production of thermal energy that can be either used directly or converted to mechanical or Geothermal Electricity. For context on broader methods and terminology, see this overview of electricity generation and how heat energy is converted to power.

Commercial exploration and development of Plant Geothermal water generated into Electricity to date have focused on natural geothermal reservoirs—volumes of rock at high temperatures (up to 662°F or 350°C) and with both high porosity (pore space, usually filled with water) and high permeability (ability to transmit fluid). The thermal energy is tapped by drilling wells into the reservoirs. The thermal energy in the rock is transferred by conduction to the fluid, which subsequently flows to the well and then to the Earth's surface where it can be converted into Geothermal Electricity. This well-to-turbine pathway is a fundamental part of electricity production from thermal resources.

There are several types of natural geothermal reservoirs. All the reservoirs developed to date for electrical energy are termed hydrothermal convection systems and are characterized by circulation of meteoric (surface) water to depth. The driving force of the convection systems is gravity, effective because of the density difference between cold, downward-moving, recharge water and heated, upward-moving, thermal water. A hydrothermal convection system can be driven either by an underlying young igneous intrusion or by merely deep circulation of water along faults and fractures. Depending on the physical state of the pore fluid, there are two kinds of hydrothermal convection systems: liquid-dominated, in which all the pores and fractures are filled with liquid water that exists at temperatures well above boiling at atmospheric pressure, owing to the pressure of overlying water; and vapor-dominated, in which the larger pores and fractures are filled with steam. Liquid-dominated reservoirs produce either water or a mixture of water and steam, whereas vapor-dominated reservoirs produce only steam, in most cases superheated. Because water acts as the primary working fluid in most systems, understanding the interplay of water and electricity helps clarify operational safety and design.

These hydrothermal systems are distinct from hydroelectricity produced by river impoundments, even though both ultimately rely on water as a medium.

Although geothermal energy is present everywhere beneath the Earth's surface, its use is possible only when certain conditions are met: (1) The energy must be accessible to drilling, usually at depths of less than 2 mi (3 km) but possibly at depths of 4mi (6–7km) in particularly favorable environments (such as in the northern Gulf of Mexico Basin of the United States). (2) Pending demonstration of the technology and economics for fracturing and producing energy from rock of low permeability, the reservoir porosity and permeability must be sufficiently high to allow production of large quantities of thermal water. (3) Since a major cost in geothermal development is drilling and since costs per meter increase with increasing depth, the shallower the concentration of geothermal energy the better. (4) Geothermal fluids can be transported economically by pipeline on the Earth's surface only a few tens of kilometers, and thus any generating or direct-use facility must be located at or near the geothermal anomaly. When these conditions align, engineered systems can efficiently generate electricity from accessible geothermal gradients.

The use of geothermal energy for Geothermal Electricity has become widespread because of several factors. Countries where geothermal resources are prevalent have desired to develop their own resources in contrast to importing fuel for power generation. In countries where many resource alternatives are available for power generation, including geothermal, geothermal has been a preferred resource because it cannot be transported for sale, and the use of geothermal energy enables fossil fuels to be used for higher and better purposes than power generation. Also, geothermal steam has become an attractive power generation alternative because of environmental benefits and because the unit sizes are small (normally less than 100 MW). Moreover, geothermal plants can be built much more rapidly than plants using fossil fuel and nuclear resources, which, for economic purposes, have to be very large in size. Electrical utility systems are also more reliable if their power sources are not concentrated in a small number of large units. In energy planning, geothermal is often evaluated alongside other forms of alternative electricity to balance portfolios and grid resilience. Many developers also highlight its contribution to green electricity targets thanks to low lifecycle emissions.

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Resistance in series refers to the arrangement of individual resistors in a circuit, where the current flows through each resistor end to end. In this configuration, the total resistance (R) of the circuit is equal to the sum of the individual resistances, also known as the equivalent R.

What is Resistance in Series?

Resistance in series refers to a circuit configuration where resistors are arranged in a single path:

✅ Total resistance is the sum of all resistors in the circuit

✅ The same current flows through each resistor

✅ Voltage divides across each resistor based on its value

To calculate the total R in a series circuit, the individual resistances of each resistor are added together. The formula to calculate the equivalent resistance in a series connection is Rtotal = R1 + R2 + R3 + ..., where R1, R2, R3, and so on, represent the individual resistances of each resistor in the circuit.

Ohm's law also applies to series circuits, where the current through each resistor is the same, but the voltage across each resistor is proportional to its R. The total voltage across the series combination of resistors equals the sum of the voltage drops across each resistor.

It is essential to note that the total resistance in a series circuit is always greater than the resistance of any individual resistor in the circuit, due to the cumulative effect of each resistor's resistance.

On the other hand, resistors connected in parallel result in a parallel circuit. The equivalent R of a parallel circuit is calculated differently from a series connection. Instead of adding the individual resistances, the reciprocal of each R is added, and the resulting value is inverted to obtain the equivalent resistance.

R in Series - Parallel

When you place R-I-S, their ohmic values add up arithmetically to reach the total (or net) R.

We can connect a series of resistors (equal to the sum of the individual resistances of a parallel circuit), all having identical ohmic values, in parallel sets of series networks or series sets of parallel networks. When we do either of these things, we create a series-parallel network that can significantly increase the total power-handling capacity of the network compared to the power-handling capacity of a single parallel resistor.

Fig. 4-14. Three resistors in series. 

Sometimes, the total single equivalent R of the combination circuit in a series-parallel network equals the value of any one of the resistors. This always happens if the parallel branches or parallel combinations of the connection components are all identical and are arranged in a network called an n-by-n (or n x n) matrix. That means when n is a whole number, we have n series sets of n resistors connected in parallel, or else we have n parallel sets of n resistors connected in series in the circuit. These two arrangements yield the same practical result for electrical circuits.

A combination of series parallel combinations array of n by n resistors, all having identical ohmic values and identical power ratings, will have n2 times the power-handling capability of any resistor by itself. For example, a 3 x 3 series-parallel matrix of 2 W resistors can handle up to 32 x 2 = 9 x 2 = 18 W. If we have a 10 x 10 array of 1/2 W resistors, then it can dissipate up to 102 x 1/2 = 50 W. We multiply the power-handling capacity of each individual resistor by the total number of resistors in the matrix.

The above-described scheme works if, but only if, all of the resistors have identical ohmic values according to ohms law and identical power-dissipation ratings in terms of total voltage drops when the sum of the voltage drops across each resistor. If the resistors have values that differ even a little bit from one another, one of the components will likely draw more current than it can withstand, so that it will burn out, no matter the voltage source. Then the current distribution in the network will change further, increasing the likelihood that a second resistor will fail, and maybe more.

If you need a resistor that can handle 50 W, and a certain series-parallel connection of the network will handle 75 W, that's fine. But you should not "push your luck" and expect to get away with using a network that will handle only 48 W in the same application. You should allow some extra tolerance, say 10 per cent over the minimum rating. If you expect the network to dissipate 50W, you should build it to handle 55W or a bit more. You don't have to use "overkill," however. You'll waste resources if you cobble together a network that can handle 500W when you only expect it to cope with 50W—unless that's the only convenient combination you can make with available resistors.

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Nominal voltage is the standard voltage level assigned to electrical equipment or systems for identification. It helps ensure compatibility, performance, and safety across devices without indicating actual operating voltage, which may vary slightly.

What is Nominal Voltage?

Nominal voltage refers to the labelled voltage value of an electrical system or device.

✅ Represents standard system voltage, not an  exact measurement

✅ Helps match equipment compatibility and safety standards

✅ Common in power distribution, residential, and industrial systems

Nominal voltage (NV) is a vital aspect of electrical systems, serving as a reference point for designing, manufacturing, and testing equipment. Additionally, it affects the performance, efficiency, and safety of electrical systems, with voltage regulation ensuring that voltage levels (V) remain within acceptable tolerances. Understanding the differences between nominal voltage, operating voltage (OV), and rated voltage (RV) is crucial for professionals and enthusiasts to ensure the effective operation and maintenance of electrical systems. To better understand how nominal voltage fits within broader system design, see our comprehensive overview on voltage.

It is vital to understand the definition and importance of nominal voltage in electrical systems. NV refers to the standard voltage value assigned to an electrical system, typically the voltage that electrical equipment is designed to operate under normal conditions. This value is crucial because it serves as a reference point for designing, manufacturing, and testing electrical equipment to ensure satisfactory performance. Maintaining voltage stability is essential—learn how voltage drop impacts performance and how to accurately calculate it.

Determining nominal voltage for electrical systems involves considering factors such as the type of equipment being used, the overall power requirements, and the voltage standards set by industry organizations. In some cases, the NV is set by the equipment manufacturer, while in others, it depends on the power grid's Voltage levels. Standard nominal voltages have been established to streamline equipment design and manufacturing processes. Use our voltage drop calculator to determine how wiring distance and load affect nominal voltage in real applications.

The terms NV, OV, and RV often appear in discussions about electrical systems. While they may seem interchangeable, each has a distinct meaning. As previously mentioned, nominal voltage is the standard voltage value designated for an electrical system. On the other hand, OV is the actual voltage at which equipment functions during operation. Similar to nominal voltage, RV refers to the maximum voltage at which equipment can operate continuously without sustaining damage. See how voltage regulators are used to maintain nominal levels and protect sensitive equipment.

Nominal voltage has a direct impact on the performance of electrical systems. Equipment designed for specific NVs operates safely within a particular voltage range. Operating outside this range can result in equipment damage, decreased efficiency, and even electrical fires. Therefore, it is essential to maintain the voltage levels as close as possible to the NV. Our guide to what is voltage explains the differences between nominal, operating, and actual voltage in power systems.

Electrical systems worldwide adhere to common national voltage (NV) standards for alternating (AC) and direct (DC) systems. For AC systems, NV  ranges include 110V, 220V, and 380V, while DC systems typically have NVs of 12V, 24V, or 48V. These standardized voltage levels enable the compatibility and interoperability of electrical equipment across various regions and industries. Learn how wattmeters and voltmeter tools help monitor nominal and real-time voltage values in field diagnostics.

Voltage regulation plays a critical role in controlling an electrical system's output voltage to ensure it remains within the acceptable voltage tolerance. Voltage regulation can be achieved through various means, including transformers, voltage regulators, and software algorithms in modern power systems. By maintaining NV, the electrical system The voltages more efficiently and safely, ensuring the longevity of the equipment.

The voltage tolerance is the range of voltage deviation from the nominal voltage value within which equipment can still operate effectively and safely. Different electrical systems have different voltage tolerances depending on the nature of the equipment and its intended use. For instance, a residential electrical system may have a voltage tolerance of +/- 5%, while an industrial system might tolerate a deviation of +/- 10%. Maintaining the acceptable V tolerance is crucial for the satisfactory operation of electrical equipment.

Nominal Voltage (NV) vs Operating Voltage (OV)

Nominal voltage and OV are two related yet distinct concepts in electrical engineering systems. Understanding the different essentials to ensure electrical systems' safe and efficient operation.

Nominal voltage refers to the standard or reference voltage level assigned to an electrical system, circuit, or device. It is the ideal voltage at which the equipment is designed to operate under normal conditions. NV is a baseline value that allows manufacturers, engineers, and technicians to design, test, and rate electrical equipment consistently.

Conversely, OV is the actual voltage level at which a particular electrical system, circuit, or device is functioning during real-time operation. Unlike nominal voltage, OV can fluctuate due to factors such as load changes, temperature variations, and power supply issues. Although electrical equipment is designed to operate optimally within a specified voltage range around the nominal voltage, slight variations in the operating V are often unavoidable.

In essence, NV serves as the benchmark or target voltage level, while OV reflects the real-world voltage conditions experienced by the electrical equipment. To ensure the efficient and safe operation of electrical systems, it is crucial to maintain the OV as close as possible to the NV. When the operating voltage falls within the acceptable voltage tolerance range, electrical equipment can function efficiently and safely without the risk of damage or performance degradation. Discover how alternating current systems rely on standardized nominal voltages like 120V or 240V for safe and consistent operation.

Nominal Voltage (NV) vs Rated Voltage (RV)

Nominal voltage and RV are related terms in electrical engineering but have distinct meanings and implications. Understanding the difference between the two is crucial for designing, operating, and maintaining electrical systems and devices properly. Differences between high voltage, medium voltage, and low voltage categories are based on standardized nominal values used in system classification.

It refers to the standard or reference voltage level assigned to an electrical system, circuit, or device. It is the ideal voltage at which the equipment is designed to operate under normal conditions. NV serves as a baseline value that enables manufacturers, engineers, and technicians to design, test, and rate electrical equipment consistently across various industries and applications.

On the other hand, RV is the maximum voltage at which an electrical device or component can operate continuously without incurring damage or experiencing a significant reduction in performance. RV is a critical parameter to ensure electrical equipment's safe and efficient functioning. Operating an electrical device within its RV range prevents excessive stress on the device, thereby reducing the risk of failure or shortened lifespan. Understanding the concept of electrical resistance is key to managing voltage drop and maintaining nominal voltage across circuits.

Nominal voltage is the target or reference Voltage level for the design and operation of electrical systems. In contrast, RV defines the maximum allowable Voltage for the continuous operation of electrical equipment. To ensure the efficient and safe performance of electrical systems, it is essential to maintain the operating voltage within the acceptable voltage tolerance range around the nominal voltage and not exceed the RV.  The relationship between power factor and nominal voltage affects system efficiency, especially in industrial electrical networks.

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Electricity prices reflect tariffs, kWh rates, time-of-use schedules, peak demand charges, and grid congestion, driven by generation costs, transmission losses, and load profiles in power systems and industrial electrical engineering.

What Are Electricity Prices?

Electricity prices are costs per kWh shaped by tariffs, time-of-use, demand charges, and grid operating constraints.

✅ Defined per kWh with time-of-use and demand charges

✅ Influenced by generation mix, transmission losses, congestion

✅ Managed via load control, demand response, smart metering

Electricity prices, or rates, are usually determined by electric utilities and the governmental organizations that oversee them. The fees an electric utility company charges its customers for service aer based on electricity prices set by government, except in the case where they cost electricity prices on a deregulated basis. In that case, electricity prices are determined by marketplace factors such as supply and demand. Electric utility companies charge their customers different rates, depending on the type of customer, the kind of contract, and on the customer's needs. Electricity Prices bill energy on the kwh basis of the individual customer's rate, the level of consumption, and other charges, such as taxes and fuel adjustments. This is how electricity billed. For a deeper breakdown of typical rate components, resources like electricity cost guides explain line items and surcharges clearly.

That collection of rates is called a tariff. The power tariff is designed to provide the privately owned electric utility with enough income to allow investors to earn a cash return and cover operation and maintenance costs. Most of the larger utilities operate as regulated franchises, meaning that the prices they charge are subject to public review, often by a State public utility commission. In competitive markets, customers may choose an electricity supplier while the utility still handles delivery services and billing oversight.

Publicly owned electric utilities are nonprofit, local government agencies established to provide service to their communities and nearby consumers at cost, returning excess funds to the consumer in the form of community contributions, more economic and efficient facilities, and lower power rates. To meet these community objectives, public power agencies plan their electricity supply over multiyear horizons to manage risk and affordability.

Publicly owned electric utilities (which number approximately 2,000) include municipals, public power districts, State authorities, irrigation districts, and other State organizations. Some of these organizations also own or contract for electricity generation assets to enhance self-sufficiency and rate stability.

There are approximately 900 cooperative electric utilities in the United States currently doing business in 47 States. These utilities are owned by their members and are established to provide power to those members. Because member education supports better usage decisions, many cooperatives provide primers on what electricity is and how it is measured on bills.

Average retail Electricity prices of power are calculated by dividing utility revenue by retail sales. The resulting measurement is the cost, or average revenue per kilowatthour, of power sold. (A kilowatthour is equal to one watt of power supplied to an electric circuit steadily for 1,000 hours.) Electric utilities usually offer three primary classes of service: residential, commercial, and industrial. The average price per kilowatthour for residential consumers is generally higher than for any other sector due in part to higher costs associated with serving many consumers who use relatively small amounts of power. In Ontario, the industrial sector has the lowest energy prices and energy bills rates every month due to the economies of serving a few consumers who use relatively large amounts of electricity. Understanding the distinction between energy in kilowatthours and instantaneous electricity power demand helps customers interpret peak charges and capacity fees. Regional consumption patterns, including trends in electricity demand in Canada, can influence wholesale prices and cross-border power flows affecting local rates.

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