How to reduce the cycling costs of conventional generation.
Grid system operators now hold the cards. That means a bidding war for talent and a new wave of mergers.
TBy issuing new rules for a Standard Market Design (SMD) for wholesale power, the Federal Energy Regulatory Commission (FERC) in all likelihood will usher in a new wave of utility mergers. But the pattern will differ from what we have seen in recent years.
The deals will center on the transmission sector, and take a horizontal shape, rather than vertical.
1 A representation of a generic interconnection, with thermal, hydro, and nuclear generation sharing a grid with a winter peaking load.
2 , 93 FERC 61,294, Dec. 15, 2000.
3 For a survey of methods, see J.W. Marangon Lima "Allocation of Transmission Fixed Charges: An Overview,", Vol. 11, No. 3, 1996.
News Digest
State PUCs
Restructuring Plans. The Ohio PUC denied rehearing of its restructuring order for FirstEnergy issued two months earlier, rejecting arguments by all petitioners-utility, marketers, and consumer watchdog groups.
Power plants can bid on more than one product. That's why most spark-spread studies miss the mark.
Forward energy prices can make it look easy to place a value on a power plant. Yet something is missing. Plants can sell more than one product. One price may be up while another is down. As Einstein said, a theory should be as simple as possible, but no simpler.
That is why it is worth reexamining the methods commonly used to calculate forward price curves and estimate the expected revenues and profits of generating assets.
A case study shows how today's typical tariffs can force some industrial electric customers to subsidize others.
There ought to be a better way for electric utilities to set prices for ancillary services - so that customers pay rates that fairly reflect the needs they impose on the bulk power system. However, while federal officials seem to agree with this point, so far they have done little to turn the idea to action.
But not for long (em as power producers and
customers get more creative in matching plants with loads Dynamic scheduling is a "sleeper" issue in the move toward electric competition. Industry players are debating independent system operators. They are focusing on issues of governance and the form of transmission pricing. Consequently, they are ignoring critical issues concerning ancillary services. These services are not receiving the attention they deserve.