A look at electricity generation from gas
Comparing the social costs of alternative forms of electricity produces some surprising findings. The full cost of electricity from a new natural gas plant is roughly 6.5 cents per KWh, according to a new Hamilton Project paper. This is more than 25 percent less than the full cost of electricity generated from existing coal plants.
AXP plans to produce 750kw so:
1. Electricity cost in USA is ~ 15.5c/kwh
2. Production cost 6.5c/kwh
3. Assuming 24hr/day = $US1620/day profit x 365= $US 591,300.00/ year profit.
4.AXP supplies it's own gas so that's subtracted from the cost of production and added to the bottom line.
All in all to me this appears to have pretty good potential. However should AXP decide to produce x 10= 7500kw it becomes quite substantial with the added beneficiation it gives to AXPs' oil and condensate production.
Ergo I'm pleased with my investment.
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