The method for calculating the cost of powers below 1 point per rank done by the ratio of power points to ranks. Normally, this will be multiple power points for one rank, so if a power cost 3 points per rank, it could be expressed by the ratio 3:1. When you lower the cost per rank below 1 point, each subtraction increases the opposite side of the ratio, so a 1 point per rank power with a 1 point discount grants 2 ranks per point, like a skill, an effective ratio of 1:2.
0 points per rank = 2 ranks per point (1:2)
-1 points per rank = 3 ranks per point (1:3)
-2 points per rank = 4 ranks per point (1:4)
-3 points per rank = 5 ranks per point (1:5)
It is not acceptable to get a power above rank 5 for 1 point, since that would just be silly. Similarly, powers that cost 0 points are allowed only in very specific circumstances (that is, when it's logically impossible for you to NOT have the power) No matter what, a power can never cost less than 0 points.
An example of the principle: Say that you have the Flight 4 power to represent your ability to telekinetically hurl yourself through the air at 30 miles per hour, and you have a secondary power to use your telekinesis on objects, a move object power with the damaging and subtle extras, each costing 1 additional point per rank, meaning that your move object power costs 4 points per rank. (therefore your secondary power is rank 4). This secondary effect costs 1 point, increasing the cost of your Flight power to 9 points. (from 8)
Next, you give yourself an additional secondary effect to create a telekinetic force field to protect yourself. This counts as a sustained protection effect, which requires a free action to use, but enables you to use extra effort to enhance your power. Since your other secondary effects require actions to use, it would make sense for your force field to require a move action to activate, so you give it the increased action flaw, reducing its cost per rank by 1. The increased action flaw means that, when you use a move action to activate your telekinetic force field, you gain your protection effect until the start of your next turn, at which point you must take another move action to continue to benefit from the shield. This enables you to buy 16 ranks of protection, which would be very difficult to make a balanced character from, given the limits imposed by your power level! Therefore, you take the distracting flaw as well, halving your active defenses while your force field is in use, and letting you squeeze more utility out of the power, adjusting your fighting style for dealing well with high accuracy, low damage foes. The additional cost reduction from the distracting flaw means that each power point invested in your protection effect grants 3 ranks of protection, enabling you to buy an insane 24 levels of protection! You would have to be PL 12 to even have that many levels of protection, so you'll need an additional extra to better pay down the power.
Impervious is a perfect choice, since it enables you to raise a defensive field which deflects all small arms fire, and most melee weapons wielded by human beings. (The strongest man in the world, wielding a claymore, could threaten you a little, but he couldn't even daze you in a single blow.) This grants you the power "Sustained Impervious Protection 16, Distracting, Increased Action (Move)" With this power, your active defenses (dodge and parry) will be limited to a level of 8, since using the power will halve them to 4, keeping you within power level defensive limits. This assumes you have a native toughness of 0, which is perfectly reasonable for a psychic character with telekinesis like that. Your character will likely want some kind of sustained protection effect at level 12 to provide protection when he doesn't want to spend a move action, but that sounds like a good idea for another power. With this second alternate power complete, your telekinesis power now costs 10 points, as an 8 point power with 2 alternate powers.
Anyway, Edison's Phonograph is the example power I explained in the last post of mine to show an example of a power with multiple flaws.
Variable 1, Activation (Standard Action), Limited (skills only), Quirk (Grants limited skills), Removable, Uncontrollable (1 point)
This drastically upgraded phonograph contains all of the death recordings and final will and testament of Thomas Edison. By spending a standard action putting the phonograph on, and a second standard action listening to Edison speak for a few moments, the listener temporarily gains up to 10 ranks in a skill chosen by Thomas Edison's recording from his advice. The phonograph will often grant skill in technology, but it frequently grants the following skills also:
Expertise: The Evils of Communism
Expertise: Concrete Furniture
Expertise: Copyright Law
Expertise: Tesla Sucks