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Off Peak

Fortnightly Magazine - September 1 1996

could sell economy energy at market prices to FP&L customers, even though the munis and co-ops bought "partial requirements" service from FP&L, priced at FP&L's average cost of generation and transmission.

For example, assume that FP&L generates energy at a given hour at 12 mills per Kwh (incremental cost), but sells to partial requirements customers at 6 mills (average cost). Those customers can then offer the

6-mill power through a broker on FP&L's economy energy bulletin board to an FP&L customer with a 10-mill avoided cost, causing FP&L to incur a 12-mill cost to avoid a 10-mill resource.

The FERC saw no problem and weighed in against any market restriction.

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