PSERC
8
Generator
(20 MW)
Generator
(15 MW)
Generator
(20 MW)
MW
$/MW
Key
Per Unit Prod. Cost
Price Offer
Market Price
Standby Cost
Fixed Cost
Profit
Generator Production Cost
Production Cost
Standby Cost
Standby Cost
Profit
Fixed Costs
Gen 1, 2, 3
$ 22
$ 5
$ 50
Illustration of Seller’s Problem
$ 61