Question

The tri-county generation and transmission association is a nonprofit cooperative organization that provides electrical service to rural customers. Based on a faulty long-range demand forecast, tri-county overbuilt its generation and distribution system. Tri-county now has much more capacity than it needs to serve its customers. Fixed costs, mostly debt service on investment in plant and equipment, are $89.2 million per year. Variable costs, mostly fossil fuel costs, are $29 per megawatt-hour (mwh, or million watts of power used for one hour). The new person in charge of demand forecasting prepared a short-range forecast for use in next year's budgetin

Answer 1

Answer:

The tri-county generation and transmission association is a nonprofit cooperative organization that provides electrical service to rural customers. Based on a faulty long-range demand forecast, tri-county overbuilt its generation and distribution system. Tri-county now has much more capacity than it needs to serve its customers. Fixed costs, mostly debt service on investment in plant and equipment, are $89.2 million per year. Variable costs, mostly fossil fuel costs, are $29 per megawatt-hour (mwh, or million watts of power used for one hour). The new person in charge of demand forecasting prepared a short-range forecast for use in next year's budgetin