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A chargeback system for electrical power use is being proposed as a means to encourage reduced consumption and to lower utility costs. What approach might be MOST equitable in attaining this goal?
Correct Answer: D
Installing sub-meters for each department (D) is the most equitable way to ensure accurate and fair distribution of electrical costs. Sub-metering provides real-time, precise measurement of energy consumption by each department, ensuring that they are only charged for what they actually use. * Advantages of sub-metering (D): * Encourages accountability and energy conservation. * Ensures fair and accurate billing. * Allows facility managers to monitor and optimize energy use. * Comparison with Other Options: * Net area occupied (A): Does not account for actual energy consumption-departments with energy-intensive equipment would be unfairly subsidized by those with lower usage. * Negotiating chargeback rates (B): Creates inconsistency and potential disputes; lacks transparency. * Headcount-based charging (C): Fails to consider that energy usage varies based on equipment, not just the number of people.