EC3(5) Cost per MWh Generated
Dollars
| Performance Measure | 2003/2004 | 2004/2005 |
| Cost per Megawatt Hour Generated (targets) | 22.33 | 21.86 |
| Cost per Megawatt Hour Generated (actuals) | 19.32 | |
| Definition | Cost per megawatt hour generated is all generation costs divided by the volume of energy generated under average water conditions. | |
| Variance Explanation | The 2003/2004 target has been revised from $26.00 to $22.33 and $19.56 to $21.86 respectively to reflect the forecasted embedded costs of supplying Heritage electricity. Dividing the embedded costs by the forecast output provides an indication of Generation's efficiency of production. The reduction in Generation's "Cost per Megawatt Hour Generated" reflects a drop in the market price of energy purchases (replacing planned thermal generation) of $12/MWh, plus a reduction in finance costs. | |
| Benchmark Comparison | Currently, all major hydroelectric generating units place in the 1st and 2nd quartiles for cost efficiency (Hadden Jackson). | |
Last Modified: Jul 9, 2004
