1) There are three different types of charges that AEP uses to determine the amount it will charge a household for electricity usage each month. The first type of charge is the "customer charge", which is a flat monthly rate (adjusted annually) that each household is charged. A second type of charge is the "transmission service" charge, which reflects how much it costs the electric company to move electricity from the power generating plants to the different substations (before being distributed to the households). A customer's fee for transmission service depends on the amount of electricity used by that individual household. The third type of charge is the "distribution service" charge, which reflects the cost to distribute the electricity from the local substation to the household. The distribution service charge is also based on the amount of electricity used by the individual household. Suppose that AEP charges a monthly fee of $8.40 to each household as its customer charge; it charges 2.93 cents per kilowatt hour (kWh) of electricity used for its transmission service; and it charges 4.17 cents per kWh of electricity used for its distribution service. a) The Jackson household used 1,042 kWh of electricity during the month of September. Determine the amount of their AEP bill for the month of September. Round your answer to the nearest cent. b) The Jackson household used 320 kWh of electricity more in August than what they had used in July. How much more was their August bill compared to their July bill?

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1) There are three different types of charges that AEP uses to determine the amount it will charge a household
for electricity usage each month. The first type of charge is the "customer charge", which is a flat monthly
rate (adjusted annually) that each household is charged. A second type of charge is the "transmission
service" charge, which reflects how much it costs the electric company to move electricity from the power
generating plants to the different substations (before being distributed to the households). A customer's fee
for transmission service depends on the amount of electricity used by that individual household. The third
type of charge is the "distribution service" charge, which reflects the cost to distribute the electricity from
the local substation to the household. The distribution service charge is also based on the amount of
electricity used by the individual household.
Suppose that AEP charges a monthly fee of $8.40 to each household as its customer charge; it charges 2.93
cents per kilowatt hour (kWh) of electricity used for its transmission service; and it charges 4.17 cents per
kWh of electricity used for its distribution service.
a) The Jackson household used 1,042 kWh of electricity during the month of September. Determine the
amount of their AEP bill for the month of September. Round your answer to the nearest cent.
b) The Jackson household used 320 kWh of electricity more in August than what they had used in July. How
much more was their August bill compared to their July bill?
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Transcribed Image Text

1) There are three different types of charges that AEP uses to determine the amount it will charge a household for electricity usage each month. The first type of charge is the "customer charge", which is a flat monthly rate (adjusted annually) that each household is charged. A second type of charge is the "transmission service" charge, which reflects how much it costs the electric company to move electricity from the power generating plants to the different substations (before being distributed to the households). A customer's fee for transmission service depends on the amount of electricity used by that individual household. The third type of charge is the "distribution service" charge, which reflects the cost to distribute the electricity from the local substation to the household. The distribution service charge is also based on the amount of electricity used by the individual household. Suppose that AEP charges a monthly fee of $8.40 to each household as its customer charge; it charges 2.93 cents per kilowatt hour (kWh) of electricity used for its transmission service; and it charges 4.17 cents per kWh of electricity used for its distribution service. a) The Jackson household used 1,042 kWh of electricity during the month of September. Determine the amount of their AEP bill for the month of September. Round your answer to the nearest cent. b) The Jackson household used 320 kWh of electricity more in August than what they had used in July. How much more was their August bill compared to their July bill?

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