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The day ahead PJM market for on peak power is trading $80/MWh. The bid for the four (4) hour super-peaking period, hours ending 16:00 to
The day ahead PJM market for on peak power is trading $80/MWh. The bid for the four (4) hour super-peaking period, hours ending 16:00 to 19:00, is trading $120/MWh. a). If you buy the day ahead on peak swap for $80 and sell the super-peak swap for $120, what do you expect to happen? (3 pts) b). As in (a), what is the real time average on peak break even price? Show work! (3 pts)
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Microeconomics Theory and Applications
Authors: Edgar K. Browning, Mark A. Zupan
12th edition
9781118920060, 1118758870, 1118920066, 978-1118758878
