PPT Slide
The Hocking Valley Authority consists entirely of hydroelectric plants. Preliminary planning studies indicate that the authority must expand its generating resources by six plants over six years. Hydro resources have been depleted and govern-ment regulations limit expansion candidates to two technologies, namely fossil (coal) and nuclear. Because of financial and manpower limitations and govern-ment regulations, only a single plant (either fossil or nuclear) can be brought on line each year. The forecasts for each technology’s operating and construction cost are tabulated below.
Production Cost (M$/yr.) Construction Cost (M$)
Year Fossil Nuclear Fossil Nuclear