The Stott-Gorsuch method is applied to the determination of the cost of manufacturing electricity in a 60-cycle station of 100,000 kilowatts installed capacity. The results correspond to the assumption that such a station is capable of delivering from 350,000,000 to 700,000,000 kelvins per annum for load factors ranging from 0.50 to 1.00. For unity load factor the cost of three-phase electricity at the outgoing cables ranges from 0.65 cent per kelvin with coal at $5.00 per ton, down to a matter of 0.20 cent per kelvin for fuel of negligible cost. A method is indicated for tracing through the increase in the cost of the electricity at later stages of its journey from the source to the consumer.