In our discussion of California’s power crisis, we noted tha…

In our discussion of California’s power crisis, we noted that market prices in the state reached even higher levels in the winter and spring of 2000/2001 than during the summer of 2000. Which of the following best describes the reason that the crisis lasted so long?

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.