A system consists of two plants connected by a transmission line. The only load is located at plant 2. When 200 MW is transmitted from plant 1 to plant 2 power loss in the line is 16 MW. Find the required generation for each plant and the power received by the load when lambda for the system is $12.50 per Megawatthour. Assume that incremental fuel costs can be approximated by the following expressions:

Below are my steps


I have doubts on the red numerator. Why is it 0.01 and not 0.001 as stated in the question?

 

Well, since you say that these are your steps, why did you use 0.01 and not 0.001?