1977 A.D. Little SPS Effects On Electric Industry

Other conclusions reached in this study are as follows: • The large size and high plant cost of the SPS are major impediments to its inclusion in terrestrial power pools as presently constituted. • SPS outages which are limited to the actual duration of an eclipse of the sun by the earth would have no effect on the power pool's fixed costs (total required amount of generating capacity), if the power demand in :the pool varies by a factor of two during the day. • The large size of the SPS will probably force the power pool to "shed load" if and when the SPS shuts down unexpectedly; this could be true even if there were enough spinning reserve available to compensate for the loss of the generation capacity. • Utility ownership of the SPS will be financially difficult if the "fuel adjustment clause" continues in widespread use. • The risks associated with selling SPS energy at the incremental costs of terrestrial base-load alternatives are probably too large to be assumed by a private corporation.

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