Comment Re:This is not a Microsoft issue (Score 1) 295
Actually, I forgot to mention something in my first post, which shows that other users are also affected by Microsoft's overestimation of their demand. The reason is that the utility must pay the same amount to all generators. It starts with cheap sources, like wind, nuclear, and hydro, then adds on more and more expensive generation, such as coal, natural gas, etc. Microsoft overestimating its demand will cause the utility to turn on their next cheapest generator, which will be more expensive than all the generators already turned on. However, it must then pay the new price to all the previous generators as well. Also, when they run the electricity market, it's the typical demand vs supply curve (see http://www.mikeonads.com/wp-content/uploads/2007/05/supply_demand_11.JPG), meaning that because the price of electricity just went up, some guy just lost his bid to be powered. (Technically, it's the independent system operator (ISO) that runs the market, and the utility collects the fine for the ISO, but that's not important here.)