(a) (10 Marks Consider the generation offers in Table 2 and the demand bids in Table 3. Ignore the effects of transmission system. 1. What is the price of electricity? 2. If the generator in offer 1 is at a remote location (Location A) and the transmission line connecting the remote location to the rest of the system (Location B) has a capacity of 90 MW, determine the price of electricity at the location B. Ignore the resistance of the line. All loads are at B. 3. In addition to the transfer limit of 90MW on line AB, the resistance of that line results in an 8MW loss when operating under the maximum cpapcity. What are the marginal prices at A and B? Table 2: Offers to sell electricity Offer number Quantity (MW) | Price 100 $1.0 240 $2.0 150 $2.5 Table 3: Bids to buy electricity Bid number Quantity (MW) Price 125 $3.00 $2.75 100 $1.50 200 CON (a) (10 Marks Consider the generation offers in Table 2 and the demand bids in Table 3. Ignore the effects of transmission system. 1. What is the price of electricity? 2. If the generator in offer 1 is at a remote location (Location A) and the transmission line connecting the remote location to the rest of the system (Location B) has a capacity of 90 MW, determine the price of electricity at the location B. Ignore the resistance of the line. All loads are at B. 3. In addition to the transfer limit of 90MW on line AB, the resistance of that line results in an 8MW loss when operating under the maximum cpapcity. What are the marginal prices at A and B? Table 2: Offers to sell electricity Offer number Quantity (MW) | Price 100 $1.0 240 $2.0 150 $2.5 Table 3: Bids to buy electricity Bid number Quantity (MW) Price 125 $3.00 $2.75 100 $1.50 200 CON