... and therefore the consumers, who are now used to electricity, find the good to be inelastic and don't mind paying any given amount for it. Most people do not see the long term effects of using so much electricity, which means that the demand will continue to grow as people's incomes increase and they are able to buy more luxurious goods that require more energy to power them. The creation of the new plant will increase supply because there will be more suppliers in the market. This plant, using about 20% of the companies capacity, will be it's largest contribution to the electricity supply and demand gap in Wisconsin. The 500-megawatt plant will power about 200,000 homes, but will still cost about $650 million dollars to build. It would be in operation by 2008, only 2 years before the demand for electricity is expected to exceed supply. In summary, the demand for ...

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