Megawatts to Kilowatt-Hours

My monthly electric bill shows an average charge of 14 cents per kilowatt-hour (kw-hr). That 14 cents includes generation, profit, and transmission from the generator to the house.

To calculate the kw-hrs carried by the NYRI transmission line multiply the nameplate rating * the capacity factor * 365 days per year *24 hours per day * 1000 kilowatts per megawatt

1200*.36*365*24*1000=3,784,320,000 kw-hrs.

At 14 cents per kw-hour the retail price is $530 million per year.

Now, let's calculate how much NYRI must make to get their guaranteed 13.5% profit. Transmission lines are depreciated over 15 years. If you use a 15-yr planning horizon, an initial cost of $2.1 billion, and a 13.5% rate-of-return, $333 million per year for 15 years is needed to recover initial costs (Find A given P factor). That doesn't include operating and maintaining the line so let's add another $2 million for an even $335 million per year.

$335 million divided by 3,784,320,000 kw-hours is 9 cents per kw-hr.

That 9 cents per kw-hr does not include generation or the transmission infrastructure from a substation to a house.