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Benchmarks

Fortnightly Magazine - November 15 2001

forms of generation based on average power production costs-typically dispatching before gas-fired units in most regions of the country. Keeping costs low, particularly fuel costs, will be important to the success of new coal-fired generation. However, because the capital investment required to build a coal-fired plant is relatively high, developers need to be concerned that the revenue generated by these plants is enough to cover those costs and make an adequate return on their investment, especially given the uncertainty stemming from the length of construction time.

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