Peaking plants, those that are only called into service during times of peak demand, are typically cheaper

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Peaking plants, those that are only called into service during times of peak demand, are typically cheaper to build (compared to base-load plants, which operate all of the time), but have relatively high operating costs. Explain why it makes sense for utilities to use this lower-capital, high-operating-cost type of plant for peaking and the high-capital, lower-operating-cost type of plant for base load.

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