Florida Power and Light (FPL) faces demands during both peak-load and off-peak times. FPL must determine the price per kilowatt hour (kwh) to charge during both peak-load and off-peak periods. The...

Florida Power and Light (FPL) faces demands during both peak-load and off-peak times. FPL must determine the price per kilowatt hour (kwh) to charge during both peak-load and off-peak periods. The daily demand for power during each period (in kwh) is related to price as follows:

Objective To use a nonlinear model to determine prices and capacity when there are two different daily usage patterns: peak-load and off-peak.