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Problem Statement: For a 50MW power plant, with a cycle efficiency of 44% do we lock in a long-term fuel rate? Assume electricity retails for $25 MWh, the plant operates for 20 years, and a discount rate of 5%. Option 1: Buy energy on the market Option 2: Futures contract rate of $4 per mmBTU Price Year (S/mmBTU) 2019-2023 3.0 2024-2028 4.0 2029-2033 6.0 2034-2038 3.0

Problem Statement: For a 50MW power plant, with a cycle efficiency of 44% do we lock in a long-term fuel rate? Assume electricity retails for $25 MWh, the plant operates for 20 years, and a discount rate of 5%. Option 1: Buy energy on the market Option 2: Futures contract rate of $4 per mmBTU Price Year (S/mmBTU) 2019-2023 3.0 2024-2028 4.0 2029-2033 6.0 2034-2038 3.0

Introductory Circuit Analysis (13th Edition)
Introductory Circuit Analysis (13th Edition)
13th Edition
ISBN:9780133923605
Author:Robert L. Boylestad
Publisher:Robert L. Boylestad
Chapter1: Introduction
Section: Chapter Questions
Problem 1P: Visit your local library (at school or home) and describe the extent to which it provides literature...
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Problem Statement: For a 50MW power plant, with a cycle efficiency of 44% do we lock in a long-term fuel rate? Assume electricity retails for $25 MWh, the plant operates for 20 years, and a discount rate of 5%. Option 1: Buy energy on the market Option 2: Futures contract rate of $4 per mmBTU Price Year (S/mmBTU) 2019-2023 3.0 2024-2028 4.0 2029-2033 6.0 2034-2038 3.0
Transcribed Image Text:Problem Statement: For a 50MW power plant, with a cycle efficiency of 44% do we lock in a long-term fuel rate? Assume electricity retails for $25 MWh, the plant operates for 20 years, and a discount rate of 5%. Option 1: Buy energy on the market Option 2: Futures contract rate of $4 per mmBTU Price Year (S/mmBTU) 2019-2023 3.0 2024-2028 4.0 2029-2033 6.0 2034-2038 3.0
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