imagine a market consisting of the following fleet of generators: a) If there is 2,200 MW of market demand, and the same market rules as Albertas electricity market, which unit sets the marginal price in this hour? What are the profits for each unit in this hour? What are the profits each company in this hour? [3 points]

b) If there is 2,200 MW of market demand that is completely inelastic, what is the total producer surplus? Consumer surplus (assume the maximum willingness to pay or VOLL is $1000/MWh) [2 points]

c) What is the productive efficiency loss associated with Unit 7 being on outage and being unable to run? [2 points]

d) Assume Unit 12 has a levelized cost of energy (LCOE) of $150/MWh. If there is a price cap of $1000/MWh in the above market, and Unit 12 has 150,000 MWh of production on average per year, how many MWhs of production are required to receive the price cap for Unit 12 to recover its LCOE and how many MWhs can earn its marginal cost of $75/MWh? What are the implications of this requirement? [3 points] (hint, unit 12 has the highest marginal cost)

Unit Type Owner 1 Coal 2 3 4 Capacity (MW) 400 250 200 300 250 200 150 400 50 80 5 Coal Coal Coal CCGT CCGT CCGT CCGT SC SC Marginal Cost ($/MWh) $13 $15 $18 $21 $24 $26 $28 $29 $38 $40 $50 $75 6 AlphaCo AlphaCo Centauri Centauri PowerGen PowerGen Centauri Centauri AlphaCo AlphaCo AlphaCo PowerGen 7 8 9 10 11 SC 120 50 12 SC Unit Type Owner 1 Coal 2 3 4 Capacity (MW) 400 250 200 300 250 200 150 400 50 80 5 Coal Coal Coal CCGT CCGT CCGT CCGT SC SC Marginal Cost ($/MWh) $13 $15 $18 $21 $24 $26 $28 $29 $38 $40 $50 $75 6 AlphaCo AlphaCo Centauri Centauri PowerGen PowerGen Centauri Centauri AlphaCo AlphaCo AlphaCo PowerGen 7 8 9 10 11 SC 120 50 12 SC