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1 The fuel costs and future escalation of the three fuels are projected to be: Coal Natural Gas Distillate Oil Fuel cost ($/MBtu) 2.0 4.50

1 The fuel costs and future escalation of the three fuels are projected to be: Coal Natural Gas Distillate Oil Fuel cost ($/MBtu) 2.0 4.50 5.50 Escalation (1990-2010) 6% per year 9% per year 8% per year Escalation (2011-2020) 6% per year 5% per year 5% per year The utility has a 10% present-worth discount rate. (a) Compute the 20-year levelized fuel cost (1991-2010) for these three fuels. (b) Compute the 30-year levelized fuel cost (1991-2020) for these three fuels

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