A B C D E F G H

1 Electricity pricing model Range names used:

2 Common_Capacity =Model!$B$21:$C$21
3 Input data Demands =Model!$B$19:$C$19
4 Coefficients of demand functions Prices =Model!$B$13:$C$13
5 Constant On-peak price Off-peak price Revenue =Model!$B$24
6 On-peak demand 2.253 -0.013 0.003
7 Off-peak demand 1.142 0.005 -0.015
8
9 Cost of capacity/mWh $75
10
11 Decisions
12 On-peak Off-peak
13 Price per mWh $136.78 $75.06
14
15 Capacity (millions of mWh) 0.700
16
17 Constraints on demand (in millions of mWh)
18 On-peak Off-peak
19 Demand 0.700 0.700
20 <= <=
21 Capacity 0.700 0.700
22
23 Monetary summary ($ millions)
24 Revenue 148.291

Exhibit 9
Oneway analysis for Solver model in Model worksheet

Capacity (cell $B$15) values along side, output cell(s) along top

Demands_1

Demands_2

Revenue
Prices_1

Prices_2
1
0.600 $146.78 $85.06 0.600 0.600 139.107
0.625 $144.28 $82.56 0.625 0.625 141.778
0.650 $141.78 $80.06 0.650 0.650 144.199
0.675 $139.28 $77.56 0.675 0.675 146.370
0.700 $136.78 $75.06 0.700 0.700 148.291
0.725 $134.28 $72.56 0.725 0.725 149.962
0.750 $131.78 $70.06 0.750 0.750 151.383
0.775 $129.44 $68.23 0.775 0.766 152.561
0.800 $127.48 $68.09 0.800 0.758 153.602

For capacities
For capacities upup to
to 0.750,
0.750, prices
prices are
are
alwaysset
always setso
so that
that the
thebot
bot demands
demandsare are
equal to
equal tocapacity.
capacity. However,
However, forfor larger
larger 150
capacities, prices
capacities, prices are
areset
set so
so there
there isis
leftover capacity in the off-peak
leftover capacity in the off-peak period.period. 145
140
135
130
125
120
115
0.600 0.625
Sensitivity of Prices_1 to Capacity

Data for chart

When you select an output from the
dropdown list in cell $K$4, the chart
Prices_1

will adapt to that output.

146.78
144.28
141.78
139.28
136.78
134.28
131.78
129.44
127.48

Sensitivity of Prices_1 to Capacity

150
145
140
135
130
125
120
115
0.600 0.625 0.650 0.675 0.700 0.725 0.750 0.775 0.800
Capacity ($B$15)