Cost of Electricity to the Grid Is Calculated in

question 92

Essay

Cost of electricity to the grid is calculated in $ per MWh. On a typical day, the Darlington plant produces an average of 84 000 MWh. The OEB recently ruled that Darlington would receive $51 per MWh of electricity produced. The cost of fuel is $5 per MWh. Operations and maintenance costs are $37 per MWh. How much profit will the Darlington plant make in a year?

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Definitions:

Monthly Net Operating Income

Net operating income calculated on a monthly basis, indicating the profitability of business operations within that month.

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent and salaries, remaining constant over a period.

Monthly Advertising Budget

A planned amount of money dedicated to promoting a company's products or services for a month.

Sales Commissions

Payments made to sales staff based on the value or volume of sales generated.