Capacity Factor Estimator
Problem: Management needs to determine whether to buy electricity
or gas, when gas prices are low. An Xcel Energy contract establishes several parameters under which electricity will be bought from Utilities plant. There is no tool to perform a Cost-Benefit analysis into the
future.
Solution: This computer program evaluates the cost/benefit of selling electricity to public service vs. producing it. It is based on several intrinsic equations (from contract) that consider 12 month rolling calculations projected to the future.
Result: A simulation through June 05, using zero as capacity factor for one out of six months rolling average of 35%, shows another inconsistency in contract to be reviewed by Xcel energy.
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