•Building
generation not needed for reserve is expensive
•Building
gas turbines ($600/KW) to curtail duopoly
pivotal power costs:
•CA:
Need 8.4 GW (16% of hours): $5 billion, 10.7¢/KWh for 1400 hours in 2000
•Offset some
of the costs with reserve benefit?
•Replace
12,000 Btu/KWh plant with 8,000 Btu plant – For $5/MCF gas, saves $26/1400 hours but costs $60 : offsets 1/3 of
costs
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