SPS Hearings, 94th Congress January 1976

Jet Propulsion Laboratory, is indicated. The y-axis contains the "Economically Justifiable" 5 thousand megawatt SSPS unit cost, evaluated at a 7.5% discount rate. This is the value up to which could be spent on the unit cost of the system for it to be cost effective with.respect to alternative systems. Cost data prepared for this study encompasses nuclear and fossil fuel systems. In the following a comparison is made between SSPS and fossil (coal and oil) systems. The line, R, in Figure 3.1 relates the generation cost in mills/kwh of terrestrial systems over the period 1995-2025 as indicated on the x-axis to economically justified SSPS Unit Cost. The coal and oil system values are based on three projections of the future: « Relative fuel prices remain constant (C$, Oq) • The relative prices of coal increase by 2.6% per year, and the relative price of oil increases by 0.67% (CA, 0A) * The relative prices of coal and oil increase by 5.0% per year (C„ , 0„). D D As indicated by the suggested probability distributions, the first projection has a very low expectation. Regarding coal,

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