Appendix:
In this appendix to “Opening the Black Box,” (Fortnightly, January 2014), we briefly describe the basic components of the models for managing aging assets: how to represent the condition of such assets and the outcome of replacement, maintenance, and testing decisions.
The model structure is one of optimal control with dynamic state variables and uncertainty. Let
A new approach to utility asset management.
PJM approved a $1.2 billion 345-kV double-circuit transmission investment designed to resolve short-circuit concerns in northern New Jersey.
Xcel Energy began work on a new substation in the town of Brunswick, Wisconsin. The substation will tie into an existing transmission line. Xcel Energy received all state regulatory approvals in early November, and construction work began in late November. The substation is scheduled to be in service by April 2014 and is estimated to cost $4 million.
The design framework for a California Independent System Operator (ISO) energy imbalance market (EIM) received approval from the ISO board of governors. The EIM will allow western grid operators, known as “balancing authorities”, to voluntarily participate in a real-time energy market that enhances grid reliability and responsiveness, effectively integrates renewable power and saves wholesale energy costs. The ISO’s first EIM partner, PacifiCorp, has been working with the ISO to prepare for implementing the market expected to go live on October 1, 2014.
State regulators address transformative forces.
The Kentucky Public Service Commission (PSC) ruled that it lacks jurisdiction to approve a merchant transmission company’s plan for providing wholesale electric transmission service in Kentucky. The commission found that the new company, AEP Kentucky Transmission Company, Inc. (KY Transco), did not fit the definition of a utility under the state utility code even though the company had averred that its transmission service would be subject to both PSC and Federal Energy Regulatory Commission (FERC) jurisdiction. Dissenting Vice Chairman James W.
A practical guide to explaining the value of the smart grid.
Calculating and allocating costs for non-traditional utility services.
Alternative ways to calculate utilities’ costs of service allow policy makers to achieve social goals in a way that’s fair and economically efficient.