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Five year Henry Hub gas strip is valued at $6.00/MMB Five year firm gas transmission from the Henry Hub to your 700MW combined cycle gas

Five year Henry Hub gas strip is valued at $6.00/MMB Five year firm gas transmission from the Henry Hub to your 700MW combined cycle gas fired power plant is offered at $.12/MMB. Plant heat rate is 7MMB/MW. O&M cost are $5/MW Five year firm power transmission to the CENTERGY Hub is $.50/MW. An electric cooperative is looking for a firm quote for five years, 24/7, CENTERGY base load power of 100 MW per hour. (1826 days) a). What quote could you offer assuming you want to lock in a $8/MWh margin? Show your work! b). What would be your total gross margin?

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