Regulation and Antitrust Policy (Econ 180) Drake University, Spring 2007 William M. Boal

Regulation of Electric Power

### Version A

I. Multiple choice [2 pt each: 32 pts total]

(1)c. (2)c. (3)c. (4)d. (5)b. (6)d. (7)e. (8)b. (9)a. (10)d.
(11)c. (12)d. (13)a. (14)a. (15)b. (16)c.

II. Problems

1. \$0.12 per kWh;
2. 70 thousand kWh;
3. \$0.02 per kWh;
4. 60 thousand kWh;
5. 80 thousand kWh;
6. 20 thousand kWh;
7. increase;
8. 10 thousand kWh;
9. \$1.7 thousand.

(2) [Wholesale power markets, economic dispatch: 23 pts]

1. Both curves are stairsteps, intersecting at price=\$50 and quantity=100 megawatt-hours;
2. Generator A at 50 megawatt-hours, generator B at 40 megawatt-hours, generator C at 10 megawatt-hours, generator D at zero megawatt-hours;
3. \$50 per mWh;
4. Generator C.

### Version B

I. Multiple choice [2 pt each: 32 pts total]

(1)a. (2)c. (3)d. (4)a. (5)d. (6)b. (7)e. (8)a. (9)d. (10)c.
(11)c. (12)a. (13)c. (14)c. (15)d. (16)a.

II. Problems

1. \$0.10 per kWh;
2. 80 thousand kWh;
3. \$0.02 per kWh;
4. 60 thousand kWh;
5. 90 thousand kWh;
6. 30 thousand kWh;
7. increase;
8. 10 thousand kWh;
9. \$1 thousand.

(2) [Wholesale power markets, economic dispatch: 23 pts]

1. Both curves are stairsteps, intersecting at price=\$20 and quantity=70 megawatt-hours;
2. Generator A at 50 megawatt-hours, generator B at 20 megawatt-hours, generator C at zero megawatt-hours, generator D at zero megawatt-hours;
3. \$20 per mWh;
4. Generator B.