The price they pitch is the price they are paid per mwh. If they can't produce it that cheaply they can choose to either sell at a loss or shut down. People do sometimes sell at a loss - but that is a business decision.

Basically the contracts say - for every mwh supplied, this is what we will pay for you for this period. So it is self governing - no point in lying, as you simply won't get paid any more.