Byline:
Hyde M. Merrill and Richard D. Tabors
In competitive power markets based on locational marginal pricing (LMP), the facts sometimes conflict with popular belief. Most notably: 1. When there’s congestion, the books don’t balance, and ratepayers always pay more than the generators receive. The difference is sometimes called “congestion cost.” 2. Congestion in a competitive market doesn’t necessarily increase ratepayers’ costs; and 3. Reductions in LMP are incomplete and sometimes misleading measures of economic benefits of transmission upgrades. These three facts and their implications should be considered in transmission planning, market design, tariffs, and system operations.
Author Bio:
Hyde M. Merrill (hm@merrillenergy.com) is the proprietor of Merrill Energy, LLC. Richard D. Tabors (rtabors@crai.com) is a vice president at CRA International, and previously was a faculty member at MIT. The views in this article are solely the authors.’ They acknowledge the insightful help of J. Dan Watkiss.
Competitive market problems and their implications for customers’ net costs.
State commissions can select from a toolkit of regulatory approaches to promote desired utility cybersecurity behavior. One approach is to allow the industry to selfregulate, and another approach is to leave the job to the federal government. But sofar, neither the industry nor the federal government have developed and implemented adequate standards for securing the smart grid. States can play a constructive role—albeit perhaps not in the form of traditional regulation.
Author Bio:
Nancy Brockway is the principal of independent consultancy NBrockway & Associates. Previously she was a commissioner with the New Hampshire Public Utilities Commission, and served on commission staffs in Massachusetts and Maine before that. Brockway acknowledges the insightful help of Alison Silverstein, but retains sole responsibility for errors and opinions.
The regulator’s role in promoting cybersecurity for the smart grid.
Not Just for Reliability Anymore
Bruce W. Radford, Public Utilities Fortnightly
In a recent order, the Federal Energy Regulatory Commission (FERC) said that by paying the wrong price for the ancillary service known as frequency “regulation,” system operators have encouraged too many gas-fired turbines and other conventional fossil power plants to supply regulation service.
Did FERC Jump the Gun?
Bruce W. Radford, Public Utilities Fortnightly
In an October order, the Federal Energy Regulatory Commission (FERC) trimmed the authorized rate incentive for the RITELine transmission project by one-third. The action prompted Commissioner Moeller to ask whether the commission is retreating from its incentive policy on needed transmission lines.
Vegetation Management and FERC Compliance
Darin Sloan, DuPont Land Management
An integrated approach can trim the cost of keeping utility rights of way clean -- and green.
RTO Bidding Rules
Bruce W. Radford, Public Utilities Fortnightly
FERC OK's PJM's capacity price floor, but questions remain about 'legitimate interests.'
Why integrating utility-scale solar will follow the wind model.
Perry Schugart, American Superconductor
If made fully “grid-friendly,” utility-scale solar ought to be able to act like a traditional power plant — aiding voltage stability and supporting grid integrity during transmission system disturbances.
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