2. New Jersey Electricity Power

In the summer, peak electricity loads can force the startup of temporary power plants called peaker plants. Peaker Plants are used to augment the power supplied by the normal full time plants, called baseline plants. Suppose New Jersey Electric Power (NJEP) has baseline plants that can produce up to 18,000 MW (megawatts) as well as three peaker plants that can each add 500 MW of additional power.

In an emergency, NJEP can further reduce overall power consumption by up to 4% by dropping the transmission voltage (essentially, give everyone 4% less electric power than they want). This causes an intentional brownout. If power demand still exceeds what NJEP can handle using brownout conditions, they would be forced to implement rolling blackouts, which involves temporarily cutting power to a rolling subset of customers.

An epic 5-day heat-wave is forecast to hit New Jersey beginning in 24 hours. Based on the weather forecast, it is estimated that NJEP's peak load demand over each day of the 5 day heat-wave will be normally distributed with the following parameters: