A city council is planning to install new LED streetlights throughout the city to reduce energy consumption and maintenance costs. There are currently 50,000 traditional streetlights in the city, which consume 150 watts each. The new LED streetlights consume only 50 watts each. Calculate the potential energy savings and reduction in electricity costs if the city replaces all traditional streetlights with LED streetlights, assuming an electricity cost of $0.12 per kilowatt-hour and an average daily usage of 12 hours per streetlight. Provide step-by-step calculations.

Step 1: Calculate the total energy consumption of traditional streetlights
Total energy consumption = Number of streetlights * Energy consumption per streetlight * Hours used daily

Traditional streetlights:
Total energy consumption = 50,000 * 150 watts * 12 hours
Total energy consumption = 90,000,000 watt-hours

Step 2: Convert the energy consumption to kilowatt-hours (kWh)
1 kilowatt-hour (kWh) = 1000 watt-hours

Traditional streetlights:
Total energy consumption = 90,000,000 watt-hours / 1000
Total energy consumption = 90,000 kWh

Step 3: Calculate the total energy consumption of LED streetlights
LED streetlights:
Total energy consumption = 50,000 * 50 watts * 12 hours
Total energy consumption = 30,000,000 watt-hours

Step 4: Convert the energy consumption to kilowatt-hours (kWh)
LED streetlights:
Total energy consumption = 30,000,000 watt-hours / 1000
Total energy consumption = 30,000 kWh

Step 5: Calculate the potential energy savings
Energy savings = Traditional streetlights energy consumption - LED streetlights energy consumption
Energy savings = 90,000 kWh - 30,000 kWh
Energy savings = 60,000 kWh

Step 6: Calculate the reduction in electricity costs
Reduction in electricity costs = Energy savings * Electricity cost per kWh
Reduction in electricity costs = 60,000 kWh * $0.12/kWh
Reduction in electricity costs = $7,200

By replacing all traditional streetlights with LED streetlights, the city can potentially save 60,000 kWh of energy and reduce electricity costs by $7,200 per day.