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benpope · 09-01-10, 01:45 PM

I think they want us to conserve mostly to reduce peak power demand which is more expensive to produce or buy than power produced a normal rates. Most power plants are steady, churn and burn producers that output a fairly constant amount of electricity. When you hit peak usage, utilities often rely on more expensive sources of power. In my area most power comes from a coal plant but under peak conditions extra power comes from small, natural gas turbines which are more expensive to operate. The marginal cost for producing power in excess of base level demand increases at a pretty high clip, meaning that their profits go down.

09-01-10, 01:45 PM	#10
benpope Helper EcoRenovator Join Date: Jan 2010 Location: Little Rock, AR Posts: 95 Thanks: 16 Thanked 13 Times in 12 Posts	I think they want us to conserve mostly to reduce peak power demand which is more expensive to produce or buy than power produced a normal rates. Most power plants are steady, churn and burn producers that output a fairly constant amount of electricity. When you hit peak usage, utilities often rely on more expensive sources of power. In my area most power comes from a coal plant but under peak conditions extra power comes from small, natural gas turbines which are more expensive to operate. The marginal cost for producing power in excess of base level demand increases at a pretty high clip, meaning that their profits go down.