ABSTRACT

This chapter follows our utility system through economic analyses of four different Supply options to consider as possible choices with which to meet its projected resource need 5 years in the future. The four Supply options of our utility system includes: two gas-fired combined cycle (CC) units, one gas-fired combustion turbine (CT) unit, and a photovoltaic (PV) facility that uses sunlight to generate electricity. Because CC and CT options come in pre-determined sizes, our utility system considering CC and CT options of a size considerably larger than its next projected resource need of 120 MW. Because PV options require relatively little planned maintenance, the availability of PV is primarily limited by the number of expected daylight hours. The chapter calculates the cumulative present value of annual revenue requirements (CPVRR) for our utility system with each resource plan. The CPVRR value represents the total costs for each resource plan.