Electricity is measured in units of power called watts. It was named to honour James Watt, the inventor of the steam engine. It would require nearly 750 watts to equal one horsepower. A kilowatt represents 1,000 watts. A kilowatt-hour (kWh) is equal to the energy of 1,000 watts working for one hour. The amount of electricity a power plant generates or a customer uses over a period of time is measured in kilowatt-hours (kWh). Kilowatt-hours are determined by multiplying the number of kW's required by the number of hours of use. For example, if you use a 40-watt light bulb 5 hours a day, you have used 200 watts of power, or .2 kilowatt-hours of electrical energy.