This question is based on a two node network with one transmission line connecting the two nodes. Assume that a Regional Transmission Organization operates the electricity market for this system, and that all generators provide supply offers equal to their marginal costs. Node A has 50 MWh of electricity demand and a generator with a marginal cost of $15/MWh. Node B has 30 MWh of electricity demand and a generator with a marginal cost of $45/MWh. Assume that both generators have 100 MW of capacity, and the transmission line connecting Nodes A and B has 100 MW of capacity. How much congestion revenue does the RTO collect in this market?
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