What the problem is these extreme events, no one wants to be caught short in the extreme events. So we’re seeing — but to us, that’s putting an elevated price on the power market because it’s just so punitive to be caught in these extreme pricing events which are happening with more frequency, just looking at the past data. And when you look at the United States is looking to retire half of its coal fleet within the next 10 years, we think that’s a lot of generators that have on-site fuel that suddenly not going to be there. And that is going to change the fundamental fabric of the power market because the new generation has different attributes. But the one that’s missing from everything that’s being built is on-site fuel storage, right? You can’t turn on the renewables and gas doesn’t store fuel on-site.
And the performance that we’ve seen of all of those assets and the storm events is not good. So we think that makes the value of our assets go up with each additional retirement that we see because the market will, over time, we believe, continue to pay us an equal amount or higher amounts for the attributes that we see today. So I get that it’s a little frustrating that we’re not saying, ALL right, we’re going to make x amount of money per quarter for the next 10 years at this number. Because we just haven’t locked that in, so we’re not willing to make that statement. What we’re saying is we think the potential is dramatically higher for our company but because we’re going to sell more in the spot market, our earnings are going to be much lumpier, right, because we’re seeing dramatic price differences for a megawatt hour in the month and a shoulder season month, versus a summer or winter month.
Now this winter was mild, but we’re seeing the power curves hold up better than we thought because I think the market is so afraid to be got short because of what we’ve seen in Winter Storm Elliott and Winter Storm Uri, where pricing paid legal limit. I mean real-time market in MISO on December 23, at $3,500 a megawatt hour in all eight zones, right? So when you take a power plant such as ours that realistically puts out 960-megawatt hours or megawatts per hour, you can start to see the revenue potential of such a plant. So that’s what we’re comfortable saying today. I hope as we continue to develop our strategy and additional forward sales positions, we’ll say more about that and we can give better guidance. But today, we’re not in a position to give forward guidance on the profitability of the plant only to say that we are convinced and we are investing in the plant so that it can be here for many years to come.
Mike Rybak: Okay. If I can just ask that question in a different way, I mean, obviously, at $58, which is where you contracted for 2023, that’s a very healthy margin for you guys and you’re probably incentivized to not sell into the plant. What is that what is that sort of price of indifference, right? Like is it a $50 at $45, you might see actually more of your volumes go into the plant rather than the coal wholesale market? I don’t know maybe you can give a range, but I’d love to just understand kind of that point of the difference.
