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Water and Electricity on the Test Server


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Mike Finn
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What's going on with Water and Electricity supplies in the B2B? The prices and supplies are up and down a lot lately. Has the demand gone up that much? Or the suppliers dwindling? Or is someone buying up the supplies to drive the price up?
Nick Sirock
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From what I saw today, GLORIOUS POWER bought out all the other electricity companies, and then raised the price to $1 per unit. Anytime anyone put up electricity less than $1.00 they would quickly buy it out. From their user profile, they got off at about 7:30, at which time the electricity stopped getting bought up.
Mike Finn
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Thanks to the folks putting up reasonably priced electricity - is your electricity being bought by someone who is now trying to sell it at a higher price?
Arlene Breh
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I have a small energy company and yes, my electricity does get bought up quickly. It's not so bad because I can always specify who I sell to if I need some but I empathize with people who can't get their hands on any at a reasonable price, I started the company to make sure I had enough.

It's interesting stuff seeing the resource be fought over by a few companies and it seems like supply is WAY up while demand shouldn't increase over the normal increase over time, assuming the entire economy is growing.
Mike Barnett
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I'm putting up at least 100 billion of each at .15. Every day. If you're not here, you're not here. If you're selling under .15, I'm the guy buying that up as well.
Mark Petz
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Most of my plants are in upgrade, I will put up as much as I can usually at 10 cents, but supply will be short for the next 2 months while I grow my plants, If I could hurry the 10,000 sq foot up grade on 50 buildings it would be sooner.
Mike Barnett
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Don't worry. I can cover you in the meantime. I'm over 2 million m2 of wells and power plants active right now. I've got another entire company with 25 wells that I won't start to produce with until it's up to 1 million itself.

As for pricing, I think that .15 is more than fair for both water and electricity. If you're a producer and think that's too high, you're selling yourself short. If you're a purchaser and think that's too high, maybe producing your own would show you how easy it is. I would love to see prices stay right in that .14 to .16 range. But if needs be, I can really put the hurt on producers selling too cheap. I can produce 100 billion units of electricity a day at .02. I can make money at .04. Not as much as I'd like, but still a lot, given my capacity. I'm not sure that there are more than two or three guys that can make money at those prices, so it would be beneficial to all producers to try to hold a line.
Algen Galvin
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It's very easy to get electricity and water production costs down to .03, or what rounds to .03 (it's less than 0.04, anyway). I have all of my companies on the test server producing their own water and electricity, with a little extra to sell.

A well producing water at 0.15 a pop will pay for itself in slightly over a day; at 0.10, it takes two days. Right now I'm comparing that with my farm producing flax seeds, which will pay for itself in 5 days (roughly what a well does when water is priced at 0.06). I think the current prices provide a strong incentive for more people to enter the market, if only to produce their own utilities.
Mike Barnett
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actually, i have electricity costs down to .02. that's because my producing plants are over 45,000 m2. add that to the fact that i have about 2.3 million m2 of mines to produce coal, and when the mines are 100 m2 and up, the coal is dirt cheap.

capacity will double in the next 45 days. i'm thinking that should be a very strong incentive to stay out of the market. producing enough for your own companies is one thing, but to get into this market is going to take some dedication. i'm not the only one getting ready to get serious in this area.
Algen Galvin
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I'm not talking about pushing you out of the market, I'm talking about participating in the market and making a profit. If you're fixing the prices at $0.15, then undercutting you by selling at $0.14 will produce more profit than many other industries, even if you buy all of it.

Having a massive capacity is really no threat. The only threat is the possibility of your competitors not making (much) money, which doesn't seem likely while you're fixing prices high.

Also... you use coal? I ran a spreadsheet a few days ago and found that natural gas is about 4.5% more efficient than coal. Specifically, minimum price 0.0225 for coal power, and 0.0215 for gas power. I guess 4.5% doesn't make much difference, though.
Mike Barnett
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i guess i wasn't clear. i'm not worried about you pushing me out of the market. and if you think mass capacity is no threat, i worry about your concept of the game. since when does someone making a lot of resources constitute a 'threat'? as for the efficiency of natural gas, i don't want to waste well capacity, and i'm making my mining companies rich at the same time. i'll give up the 4.5%

i'm not selling for the next 30 days. i'm going into expansion mode. when i hit the market again, i'm looking at .05 electricity and .10 water. happy times for the rich and poor alike, unless you're accustomed to selling for .15.
Nick Sirock
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I don't see why you would want to cut so many newbies out of the electricity market by selling electricity at .05. It takes most newbies a couple days to get their power plants able to produce a substantial amount of electricity at 0.03, and it will only take longer with prices so low. Sure they'll be able to buy it from you, but in the end its only going to narrow the electricity market. Different prices and competition are a very important part of any economy, and I doubt that any attempt to limit that is going to be beneficial. Remember that in the end do not what's best for only yourself, but what is best for the whole.
Mike Barnett
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if i sell water or electricity at that rate, i'm doing what's best for a lot more people than i'm harming. there are far more consumers than producers. if i hurt the producers, i hurt 10% of the base, and help 90% by making reasonable utilities available to them.

if i'm looking out for what's best for myself, i'd hold them at .15. i haven't seen any water or electricity last for more than 36 hours at that price.

by the way, where did i say i wanted to cut out anyone? i suggested that it's probably not the best market to get into right now, which i believe. hell, i built my main water and power producing company into over a million feet2 by selling .05 cent water and electricity. if i can do it, anyone can.
Nick Sirock
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If you think it is best, then I personally will be fine with selling the electricity at a lower price. Though obviously that means nothing in your decision process. You've been playing this a lot longer than I have. But I honestly think that if you are willing to sell your electricity for .05, producing it at roughly .03, then you would be making a .02 profit, but whats to stop someone from buying up all your electricity and selling it for .07 at their own .02 profit? Wouldn't this cycle just happen over and over again?
Mike Barnett
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yes. that's exactly what would happen. some people would benefit from re-selling, most would benefit from cheap resources to manufacture their goods, and i would still make money.

i haven't put any water or electricity up for sale for 3 days or so now. every time i check prices, they are anywhere from .15 to .20 for the cheapest water or electricity. just tell me that you wouldn't want to see a few hundred trillion out there for .05 from time to time. perhaps you'd be happier to see a few of the big producers get together and hold it at .20. that would be great for us, but i don't think it helps the rest of the playerbase.
Nick Sirock
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I agree with you, just wasn't sure that the long term goal was to get bought out and resold. Basically you want to do what my fiancé and I have been doing but on a much larger scale.
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