U.S. Northeast natural gas spot prices jumped to about a five-year high on Dec. 22, 2022 as

Fantastic news! We've Found the answer you've been seeking!

Question:

U.S. Northeast natural gas spot prices jumped to about a five-year high on Dec. 22, 2022 as a cold snap brought below-freezing temperatures throughout the region. Algonquin city-gates natural gas prices jumped to $30/MMBtu on Dec. 22, its highest price since January 2018. Assume your company operates a power plant in this area that has a Heat Rate of 8,500. Assume at this time that power can be sold in the market at $100 per MWh. Is it profitable to run the power plant? What is the spark spread given this information? Hint: Use the Spark Spread calculation. Spark Spread ($/MWh) = Price of Power per MWh- [Price of Natural Gas per MMBtu * (Heat Rate/1,000)]

Posted Date: May 18, 2024 11:03 AM

See More Questions

Jen and Barry's Ice Milk Company used cash to purchase a new ice milk mixer on January 1, 2013. The new mixer is estimated to have a 20,000 - hour service life. Jen and Barry's depreciates equipment...
The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed...
Discuss the three concepts upon which the law of increasing cost is based.
Discuss some of the consequences you believe might follow from the shift in UK share ownership over the past 30 years.
Husky Industries has the following account balances: The company wishes to raise $40,000 in cash, and is considering two financing options. Either it can sell $40,000 of bonds payable, or it can...
Direct gain, passive solar heat will provide part of the heat for a workshop in a new building near Montreal. This room has 32 square metres of solar glazing. For the floor slab to act as an...
Alfred Hansen publishes an online travel blog. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit an income statement, statement of owner's...
A skydiver falls a distance d 512 m in a time t 8.2 s before opening her parachute. After 90.2 s. Use a coordinate the chute opens, she falls an additional distance d = 1084 m in t system where the...
2) a) [15 Pts.] Find the curve fit of the form y = (xAB)-1 for the following data xk 0.5 0.9 1 1.5 1.333 0.4115 0.333 0.231 b) [10 Pts.] Determine E(f) Hint: E2(f)==1lex]1/2
If 3 f(x) x2+5x+7, for all x, find lim f(x). -8
Laker Company reported the following January purchases and sales data for its only product. For specific identification, ending inventory consists of 3 8 5 units from the January 3 0 purchase, 5...
The accounts receivable balance for Renue Spa at December 31, Year 1, was $85,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,300. Total retained earnings at the end...
Three households are shareholders in a terraced house with just one heated garage. If the garage is used for parking then only one of the households can use it. Alternatively, the garage could be...
Maria Castigliani is head of the purchasing department of Ambrosiana Merceti, a medium-sized construction company. One morning she walked into the office and said, The main problem in this office is...
An increase in which component of quality costs is most likely to result in a decrease in the other three components? a. prevention costs b. inspection costs c. internal failure costs d. external...
Activity-based costing can be used to refine which of the following? a. job-order costing b. process costing c. both job-order and process costing d. neither job-order nor process costing
How might the proportion of total quality control costs in each of the four components of quality control (prevention, inspection, internal failure, and external failure) vary for different types of...

U.S. Northeast natural gas spot prices jumped to about a five-year high on Dec. 22, 2022 as

Question:

Expert Answer:

Students also viewed these finance questions