Economic Selection of Generating Capacity Additions

The method of selection of generating capacity additions described in this paper is one which applies to the general case where there are several possible choices of location for new units, and where each location has substantially different annual costs for unit additions, transmission, fuel, and other operating costs. In cases where investment costs or fuel costs are equal for some of the locations, the problem solution can be simplified. Once a study has been made and the next new unit committed, it should be repeated prior to the addition of each subsequent unit. This insures taking of due cognizance of all factors which may be subject to change. When the study is repeated at some future date, it should be conducted for the same span of years and the target date moved ahead accordingly.