Homework 6 Read following and provide a one-page summary. You can add your own idea about the subject in the paper. Benjamin F. Hobbs, "Optimization methods for electric utility resource planning. A. European Journal of Operational Research, Volume 83, Issue 1, Pages 1-20, May 1995. 2. The aggregate capacity of existing power system at the beginning of year 1995 is shown in Table Reliability studies indicate that the utility requires an additional 1000 MW of effective capacity in the year 1995. The utility is considering two options: (a) adding new combined-cycle units or oil-steam to 2500 MW of coal-fired generation. The utility would also add either combined-cycle or gas-turbine additions in conjunction with the second option. The characteristics of these altermatives are shown in Table 2. The fuel price is forecast to escalate over the next 20 years as shown in Table 3. The annual load duration curve is shown in Table 4. The utility uses a IO%year present-worth discount rate and a 20% levelized annual Requirements: Compute the 20-year levelized operating costs (SMWh) for each generating unit type (new combined-cycle or new gas turbine). (2) On the basis of a simplified 20-year levelized annual analysis of how the generation system would operate in 1995, determine which alternative is the most economical? Alternative 1: Combined-cycle additions. Alternative 2: Oil-to-coal conversion of oil-steam units with additional combined-cycle units Alternative 3: -to-coal conversion of oil-steam units with additional gas-turbine units. Oil Fuel Cost in 1995 Rated Capacity Average Heat Rate Average MW T MWh) Availability Generating Unit Coal steam Gas turbine oil) 2222 Percent MW Effective Capital Cost Heat Rate Alternative TMW sine vailability T capacity oil-to-coal conversion of New gs turbines 30 45 12 Table