The Virginia PUC is considering a subsidy program to encourage consumers to install improved insulation in walls and ceillings of homes as a way of reducing the need for building a new CCGT plant. The insulation program would cost $1,500,000 and would save 10MWH of power. What is the negawatt cost in MWh of this power savings?

The Virginia PUC is considering a subsidy program to encourage consumers to install improved insulation in walls and ceillings of homes as a way of reducing the need for building a new CCGT plant. The insulation program would cost $1,500,000 and would save 10MWH of power. What is the negawatt cost in MWh of this power savings?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3.4CE

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