System planning production cost calculations

A METHOD of electric energy production cost calculation has been developed for use in the solution of a simulation problem by digital computers. Several new features have been incorporated to improve the flexibility as compared to previous methods without sacrificing accuracy. It constitutes one phase of a comprehensive system planning study which evaluates cost differences due to variations in types of peaking units, spinning reserve policies, unit outage rates, and use of pumped-storage hydro, as well as unit size, heat rate, location, etc.