1. The interested student should rewrite the equations for the vertically integrated utility to show that the total revenue received from all activities is equal to the sum of all input costs, plus the sum of all capacity charges. Note that the total revenue equals total cost.
2. The interested student should identify the regulations for his country and state (province). How many regulatory bodies are overlooking the utilities? How many interconnections exist? Which fuels are used? What storage is available? How many markets exist? How are they related? How many contracts exist for the utility (GENCO, etc.) and for the customer? Are there option contracts?