Earthquake drought fire economic famine flood and a

Reference no: EM13595179

Earthquake, drought, fire, economic famine, flood, and a pestilence of TV court reporters have caused an exodus from the City of Angels to Boulder, Colorado. The sudden increase in demand is straining the capacity of Boulder's electrical system. Boulder's alternatives have been reduced to buying 150,000 MWh of electric power from Tri-County G&T at a price of $75 per MWh, or refurbishing and re-commissioning the abandoned Pear Street Power Station in downtown Boulder. Fixed costs of that project are $10 million per year, and variable costs would be $35 per MWh. Should Boulder build or buy?

Reference no: EM13595179

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