Because these gift cards may be redeemed by anyone to pay for electricity they can also be used to barter with anyone worldwide. Kilowatt Cards are issued by a non-profit corporation to demonstrate that financial liabilites denoted in kilowatt-hours represent an asset class having stable and universal value.
AUTHENTICATE - Verify that Kilowatt Cards are real and active by using the form below.
Enter the last six digits of the current serial number in the form. If the serial number is active, two new digits will be returned to you which should be written on the card, by hand, at the end of the old number, which defines a new six-digit serial number. Cross out the first two digits of the old number as shown below, since those first two digits have been canceled. This rolling process creates a new six-digit serial number each time a serial number is authenticated. The old number is canceled each time. This way nobody holding Kilowatt Cards can make effective copies of them since all copies have canceled serial numbers after any one of the copies has been authenticated.
These rolling serial numbers let anyone with access to the internet veryifty that the Kilowatt Cards are real even though they are printed on plain paper. If you are going to accept them as payment, authenticate them first.
How much is 10 kWh worth?
The limit of 35 cents/kWh was chosen because that is the typical cost for residential electricity in highly populated but isolated places, such as Alaska, Puerto Rico or the Dominican Republic.Record of All Redemptions
If Kilowatt Cards are redeemed to pay for electricity in places with above-average prices, such as Barrow, Alaska, where electricity costs about $1.10 per kWh (10 times the U.S. national average), they will not be redeemed at face value but instead recieve the existing redemption limit price (today 35 cents/kWh).
Most retail customers pay 11 to 28 cents per kWh. For them Kilowatt Cards are probably worth more to barter with or to save than to redeem for current electricity consumption.
Maintaining a relatively high redemption price limit (e.g., 35 cents/kWh) maintains the barter value of Kilowatt Cards, because consumers who pay relatively high prices for their electicity should be willing to buy and redeem Kilowatt Cards if the cash price drops much below their own cost for electricity (arbitrage).
Eventually the cash price for Kilowatt Cards may be determined on a public exchange for trading kWh notes against national currencies and kWh liabilities from other issuers, Until then Kilowatt Cards must be priced on fundamentals.
The fact that electricity rates are often less than US $3.50/10kWh affects the barter value of Kilowatt Cards but not very much.
To see why, imagine having a used Japanese car for sale in Detroit, MI, where Japanese cars are unpopular. If the national price for the car were $10,000, but your best offer in Detroit was $5,000, that would not mean that your car was worth $5,000. Instead it would be worth $10,000 minus your personal cost to move and sell the car elsewhere.
Using the top redemption price of $3.50/W10, one may discount the cash value of Kilowatt Cards by considering one's own ability to trade the cards elsewhere.
Kilowatt Cards probably have some barter value everywhere - even places without electricity - provided they could eventually be traded to someone who buys elecricity. .
One gallon of gasoline (US, no alcohol) contains 36.6 kWh of energy or about 30 kWh as heat (at 80% conversion efficency) and so might trade for W30 Kilowatt Cards.
As the cost of electricity rises, Kilowatt Cards should become more precious. Will the underlying assets hold value in the usual way of 2 - 10% annual inflation? They probably will if the assets are truly diversified.
As costs rise, will most electricity grids still serve the developed world 24 x 7, or will people come to rely mosly on private generators? Private generators will certianly become more important than they are today. But a delocalized, universal financial instrument might do quite well in that environment since it would still be redeemable by retail electricy consumers, even if that group did not include so many people anymore.
Some Kilowatt Cards are FREE but for postage and handling.