Consider a 55%-efficient, 100-MW, NGCC merchant power plant with capital cost of $120million. It operates with a 50% capacity factor. Fuel currently costs $3/MMBtu and currentannual O&M is 0.4/kWh. The utility uses a levelizing factor of 1.44 to account for futurefuel and O&M cost (see Example 1.3 in the text). The plant is financed with 50% equity at14% and 50% debt at 6%. For financing purposes, the book life of the plant is 30 years.The FCR, which includes insurance, fixed O&M, corporate taxes, etc., includes anadditional 6% on top of the finance charges