The Effects Of Quality And Price On The Dispatch Of A Generating Station

As we compete for close margins in wholesale sales, the effects of both quality and price have a major impact on the cost of producing electricity.SO2 emission allowances have traded as low as$60/ton to as high as $215/ton over the last three years. This price spread in emission allowances clearly demonstrates the correlation between the quality of fuels versus the price utilities will be willing to pay for them. This paper provides an overview of the effects of the qualities of fuel, coupled with transportation as well as environmental concerns on the price of fuel and the ability to compete in a deregulated electric market.