Economic Aspects of Energy Generation: Cost of Generation of Electric Energy

This paper is a general discussion of the subject of the cost of electric energy, with particular emphasis on the cost of generation and the related items of transmission and distribution. It covers the economics of steam power versus water power and shows that, in most cases, present-day steam power can be produced more cheaply than present-day water power. It shows that there is no economy in long-distance transmission of electric energy and that so und economics require the location of the generating plant near the load. The cost of distribution is presented briefly, emphasizing the point that this item is the major cost in expenditure for electric service.

The paper concludes that the trend in cost of producing, transmitting, and distributing electric energy is downward-although no sharp dip is to be expected-and that future power requirements will be met by steam plants located economically with reference to loads.