What’s electricity?
The electricity that we pay for is electrical power, not the amount of electrical energy generated. Electrical power is the rate at which electrical energy is transferred. Electrical power is measured in units called watts. Watts (power) is calculated by multiplying volts and amps.

P = V X I

Answer the following two questions based on what you have just read.

1. How many volts (V) would there be if you had 15 amps (I) of energy and 10 ohms (R) of resistance?
2. How many watts (P) would be transferred if you had 50 volts (V) and 5 amps (I)?

Part 2: Calculating electricity use

It doesn’t take much to use up one watt, so our electricity usage is measured in kilowatts.

1 kilowatt = 1,000 watts

But, we don’t really pay for electrical power itself. Electrical rates are based on how long we use an amount of power that is transferred to us. In other words, we pay for the cost per kilowatt-hour (Kwh). One kilowatt hour means that 1 kilowatt (1,000 watts) is transferred continuously for a period of 1 hour.