This document discusses the input-output, heat rate, and incremental cost characteristics of thermal power plants. It defines input-output characteristics as a plot of fuel input versus power output. Heat rate is the ratio of fuel input to energy output and is the slope of the input-output curve. An incremental fuel rate curve plots the incremental fuel rate, or change in input divided by change in output, versus output. The incremental cost curve multiplies incremental fuel rate by fuel cost to determine incremental cost in monetary terms per unit of output. Economic dispatch of power plants aims to minimize total incremental costs while meeting demand.