Problem 2 (25 Points) In the day ahead market for May 4th, 10-11 am: the clearing price is $28.75/MWh. In the real time market for May 4th, 10-11 am: the clearing price is $34.28 /MWh. Suppose at May 4th, 10-11 am, the demand of City M is 34,900 MW and the wind power generation of ABC generation company is 5,000 MW. Note: To sell electricity to the real time market, the price is (real time clearing price)* 0.9. To purchase electricity from the real time market, the price is (real time clearing price) * 1.1. Part A (15 Points) ABC generation company owns a natural gas power plant and wind power plant. The capacity of the natural gas power plant is 40,000MW. The cost of wind power generation is $4/MWh and the cost of natural gas generation is $15/MWh. ABC generation company provides its bid at $25/MWh for both wind power 7,000MW and natural gas 33,000MW in the day-ahead market. 1. At what price will this generation company sell its energy during May 4, 10-11 a.m.? (5 points) 2. Suppose ABC company is the only supply source in this city and must serve all loads. How much amount of natural gas energy this generation company will provide on May 4th from 10:00am to 11:00am. (5 points) 3. What is the total profit for this generation company? (5 points) Part B (10 Points) A utility company provides its bid at $30/MWh for purchasing 30,000MW in the day ahead market. It sells the energy to their customers at the flat rate 11.5 cents/ KWh. This utility company covers 90% of the demand in the city M. 1. How much energy does this company need to buy or sell in the real-time market? (5 points) 2. What is the total profit for this utility company? (5 points)