4.1
Cheapo Electrons is an electricity retailer. Table 4.14 shows the load that it forecast
its consumers would use over a 6-h period. Cheapo Electrons purchased on the
forward market and the power exchange exactly enough energy to cover this
forecast. The table shows the average price that it paid for this energy for each
hour. As one might expect, the actual consumption of its customers did not exactly
match the load forecast and it had to purchase or sell the difference on the spot
market at the prices indicated. Assuming that Cheapo Electrons sells energy to its
customers at a flat rate of 24.00 $/MWh, calculate the profit or loss that it made
during this 6-h period. What would be the rate that it should have charged its
customers to break even?
