APPENDIX B CHANGE IN POWER POOL COSTS DUE TO SPS When a five gigawatt SPS is included in a power pool (peak yearly demand = PmnY) instead of five one gigawatt nuclear power plants (installed over a 5 - 8 year period), there is a significant decrease in the power pool fuel costs and a corresponding increase in the power pool fixed and operating costs. Since many utilities have separate fuel and fixed rates, the size of these individual changes may have a significant impact on the financial position of the utilities. In this Appendix, the equations used to calculate the changes in both cost categories are derived. Fuel Cost Shavings When the SPS comes on-line, the fuel cost savings per kilowatt hour of energy sold (per unit fuel savings) during the first year would be energy delivered by the SPS x average cost of power .___________________________ pool energy______________________ p.u. ue sav ngs total energy delivered by the power pool It is expected that the SPS will deliver 4.16 x 10^ kW-hrs per year. The average cost of energy from the power pool is assumed to be $.015/kW-hrs in 1974. If the cost of fuel inflates at the rate of i^ per year, the average cost of energy from the power pool, n years after 1974, would be $.015(1 + if)n per kW-hr.
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