3 ms·
> The government will make up the difference if retail prices are lower … and pocket it if higher, right?
by credit_guy 4y ago
> The government will make up the difference if retail prices are lower
… and pocket it if higher, right?
- bobthepanda 4y agoNope! It’s a price floor.
- credit_guy 4y agoIt's not a price floor [1]. If the wholesale price of power is higher than the strike price, then the operator pays the difference to the regulator. [1] https://www.jstor.org/stable/pdf/resrep14807.4.pdf https://www.jstor.org/stable/pdf/resrep14807.4.pdf