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Example(1):
four power systems has submitted the following buy/sell offers to the broker
Example(2):
Σ𝐹𝑖 ∗ 𝐸𝑖
𝐹̅ =
Σ𝐸𝑖
seller’s weighted average incremental cost
($42.5/𝑀𝑊ℎ − $25/𝑀𝑊ℎ)
𝑆1 = 100𝑀𝑊ℎ ∗ ∗ 0.9 = $787.5
2
($42.5/𝑀𝑊ℎ − $30/𝑀𝑊ℎ)
𝑆2 = 100𝑀𝑊ℎ ∗ ∗ 0.9 = $562.5
2
($35/𝑀𝑊ℎ − $27.5/𝑀𝑊ℎ)
𝑆3 = 50𝑀𝑊ℎ ∗ ∗ 0.9 = $168.75
2
($45/𝑀𝑊ℎ − $27.5/𝑀𝑊ℎ)
𝑆4 = 150𝑀𝑊ℎ ∗ ∗ 0.9 = $1181.25
2
subtotal $ 7150.00
subtotal $ 6850.00