An electricity market run by a Regional Transmission Organiz…
An electricity market run by a Regional Transmission Organization has four generators: Generator A: 10 MW, marginal cost of $5/MWh Generator B: 30 MW, marginal cost of $10/MWh Generator C: 10 MW, marginal cost of $50/MWh Generator D: 10 MW, marginal cost of $65/MWh All generators offer into the day-ahead and real-time markets at their marginal cost. You may assume that there is never any transmission congestion in this market, and that the generators have no fixed costs. In the day-ahead market, the RTO forecasts that demand will be 35 MW. Once the RTO gets to running the real-time market, however, its demand forecast has increased to 37 MW. Calculate the total revenue from the day-ahead and real-time markets for Generator C.