Duke energy coal allocation

Purcsae contract Power Demand

Amount Avl. Cost

Minimg Co. (tons) ($/tons) BTUs/lb Generating Unit
Fixed RAG 350,000 22 13000 Mimai Fort #5
Tonnage: Peabody 300,000 26 13300 Mimai Fort #7
American 275,000 22 12600 Beckjord
Variable Consol 200,000 32 12250 East Bend
Tonnage: Cyprus 175,000 35 12000 Zimmer
Addington 200,000 31 12000 Total
Waterloo 180,000 33 11300
Total 1,680,000

Transportation cost ($/Ton)

Mimai Fort #5 Mimai Fort #7 Beckjord East Bend Zimmer Mimai Fort #5
RAG 5 5 4.75 5 4.75 10
Peabody 3.75 3.75 3.5 3.75 3.5 10
American 3 3 2.75 3 2.75 13
Consol 3.25 3.25 2.85 3.25 2.85 10
Cyprus 5 5 4.75 5 4.75 10
Addington 2.25 2.25 2 2.25 2 5
Waterloo 2 2 1.6 2 1.6 11

Duke Energy Coal Allocation Model

Objective Function coefficients

Mimai Fort #5 Mimai Fort #7 Beckjord East Bend Zimmer
RAG 37 37 36.75 32 32.75
Peabody 39.75 39.75 40.5 35.75 36.5
American 38 38 39.75 34 33.75
Consol 45.25 45.25 45.85 42.25 41.85
Cyprus 50 50 49.75 45 45.75
Addington 38.25 38.25 39 37.25 37
Waterloo 46 46 45.6 42 43.6

Minimization of Coal Cost 53407249.329

Decision variables matrix
Mimai Fort #5 Mimai Fort #7 Beckjord East Bend Zimmer Total shipped
RAG 0 0 61538.46 288461.5 0 350000
Peabody 36654.135338 191729.32331 71616.54 0 0 300000
American 0 0 0 0 275000 275000
Consol 0 0 33877.55 0 166122.4 200000
Cyprus 0 0 0 0 0 0
Addington 200000 0 0 0 0 200000
Waterloo 0 0 98672.57 0 0 98672.5663716815

Total mWh 550000 500000 650000 750000 1100000

Equals Equals Equals Equals Equals
mWh Required 550,000 500,000 650,000 750,000 1,100,000
Amont Required Heat Rate
(mWh) (BTU/kWh)
550,000 10,500
500,000 10,200
650,000 10,100
750,000 10,000
1,100,000 10,000
3,550,000

Add-On cost
Mimai Fort #7 Beckjord East Bend Zimmer
10 10 5 6
10 11 6 7
13 15 9 9
10 11 7 7
10 10 5 6
5 6 4 4
11 11 7 9

Demand constrant matrix

Mimai Fort #5 Mimai Fort #7 Beckjord East Bend Zimmer
2.4761904762 2.5490196078 2.5742574 2.6 2.6
2.5333333333 2.6078431373 2.6336634 2.66 2.66
2.4 2.4705882353 2.4950495 2.52 2.52
2.3333333333 2.4019607843 2.4257426 2.45 2.45
2.2857142857 2.3529411765 2.3762376 2.4 2.4
2.2857142857 2.3529411765 2.3762376 2.4 2.4
2.1523809524 2.2156862745 2.2376238 2.26 2.26

equals 350,000
equals 300,000
equals 275,000
<= 200,000
<= 175,000
<= 200,000
<= 180,000