7) A coal plant and a natural gas plant have the following attributes: Coal Baseload Gas Baseload Сарacity 1000 MW 1000 MW Fixed O&M $3000/hr $1500/hr Variable O&M $5/MWh $3/MWh Fuel Cost $3/MMBTU $? / MMBTU Heat Rate 10 MMBTU/MWh 7 MMBtu/MWh Emissions Rate 1.0 ton CO2/MWh 0.5 ton CO2/MWh Both plants are operating in an electricity market (uniform price auction) in which they are subject to a carbon tax of $20/ton of CO2. They both bid marginal cost (including the cost of carbon). What is the maximum natural gas price such that the Gas Baseload plant is dispatched before the Coal Baseload plant? (Assume if their bids are tied, the gas plant gets dispatched before the coal plant) Note: only submit a number ($/MMbtu), do not enter the unit Answer:

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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1)
A coal plant and a natural gas plant have the following attributes:
Coal Baseload
Gas Baseload
Сараcity
1000 MW
1000 MW
Fixed O&M
$3000/hr
$1500/hr
Variable O&M
$5/MWh
$3/MWh
Fuel Cost
$3/MMBtu
$? / MMBTU
Heat Rate
10 MMBTU/MWh
7 MMBTU/MWh
Emissions Rate
1.0 ton CO2/MWh
0.5 ton CO2/MWh
Both plants are operating in an electricity market (uniform price auction) in which they are subject
to a carbon tax of $20/ton of CO2. They both bid marginal cost (including the cost of carbon).
What is the maximum natural gas price such that the Gas Baseload plant is dispatched before the
Coal Baseload plant? (Assume if their bids are tied, the gas plant gets dispatched before the coal
plant)
Note: only submit a number ($/MMbtu), do not enter the unit
Answer:
Transcribed Image Text:1) A coal plant and a natural gas plant have the following attributes: Coal Baseload Gas Baseload Сараcity 1000 MW 1000 MW Fixed O&M $3000/hr $1500/hr Variable O&M $5/MWh $3/MWh Fuel Cost $3/MMBtu $? / MMBTU Heat Rate 10 MMBTU/MWh 7 MMBTU/MWh Emissions Rate 1.0 ton CO2/MWh 0.5 ton CO2/MWh Both plants are operating in an electricity market (uniform price auction) in which they are subject to a carbon tax of $20/ton of CO2. They both bid marginal cost (including the cost of carbon). What is the maximum natural gas price such that the Gas Baseload plant is dispatched before the Coal Baseload plant? (Assume if their bids are tied, the gas plant gets dispatched before the coal plant) Note: only submit a number ($/MMbtu), do not enter the unit Answer:
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