Economics of Planning
LEW HANES: I want to talk some more about the economic issues in planning. What are the things that are important in deciding which resources you call upon?
BILL MELTON: We are given an economic price for all of our generation
except hydro power. We will load from cheapest to highest.
Generation Energy Marketing personnel are involved in the economic decisions
for dispatching the generation resources. You notify marketing that
you need 200 megawatts between 11 am and 12 noon. Is there any electricity
below the system lambda that can be purchased? The reference price
(system lambda) might be based on the cost of electricity from your combustion
turbines. If cheaper power can be purchased off-system and the interface
is available to bring this power in to our system, then this is the most
economical plan for our system.