Levelling means that a constant annual figure is determined for all the years that a transformer will be used. Using energy as the example , with energy costs rising, the levellized energy charge is higher than the initial energy cost and lower than the final energy cost. It is not an average! Levellized energy cost is determined by adding energy costs on a year-by-year basis , taking present worth into account . The result is multiplied by the capital recovery factor to obtain the levellized energy cost. Levellized annual peak load is similarly determined .