• Pricing SPS generated energy in this manner requires the operation of the SPS at a loss for roughly twenty years. The risks associated with this arrangement are too large for private industry- financial guarantees from the government would be required. • If the government provides financial guarantees to a corporation intending to price SPS energy in this manner, this may be interpreted as a statement that the government is either willing to subsidize the SPS or that it expects the inflation rate to continue at its present level or higher.
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