The amount of energy sold by the power pool each year is defined to be P x .56 x 8760 kW-hrs per year where P is the yearly peak max r ' max * power demand in 1994 and .56 is the assumed system load factor. If the yearly peak demand grows at the rate of g per year, the peak demand would be P _„(1 + g)n max The total cost of fuel per kW-hr (p.u. fuel cost) of all the energy sold by the power pool would be the per unit cost if the generation mix remained the same minus the per unit savings caused by the SPS: Fixed and Operating Cost Increases The change in the fixed and operating costs of a power pool caused by installing an SPS in 1994 is the increase in costs caused by adding the SPS and a corresponding decrease caused by not adding the otherwise required conventional capacity. The cost increases due to the SPS are the sum of the following capital recovery costs and the SPS operating costs;
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