Skip to main content

Power Systems Operation: Old vs. New

  • Chapter
Power Systems Restructuring

Abstract

In this chapter, we describe the basic tasks of power system operation by first reviewing these for today’s industry, and then describing possible solutions for the evolving industry. We suggest that the new solutions strongly depend on the type of the electricity market (system structure) in place and illustrate possible solutions in the context of specific representative system structures.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Security Coordinator Procedures, NERC, October 14–15, 1997.

    Google Scholar 

  2. Gaebe, G.P., “California’s Electric Industry Restructuring”, Proc. of the EPRI Workshop on The Future of Power Delivery in the 21st Century, La Jolla, CA, November 18–20, 1997.

    Google Scholar 

  3. Ilić, M., Zaborszky, J., Analysis and Control of Electric Power Systems,Wiley Interscience, Inc. (in press)

    Google Scholar 

  4. Ellerman, D.A., Schmalensee, R., Joskow, P.L., Montero, J.P., Bailey, E.M., Emmissions Trading Under the U.S. Acid Rain Program, MIT Center for Energy and Environmental Policy research, 1997.

    Google Scholar 

  5. The organized markets in Nord Pool, the Nordic Power Exchange; The Day-Ahead Market“, Nord Pool, May 1996.

    Google Scholar 

  6. The organized markets in Nord Pool, the Nordic Power Exchange; The Futures Market“, Nord Pool, November 1995.

    Google Scholar 

  7. Graves, F., “Antitrust Questions Raised by Peak Price Intensity and Market Volatility in Deregulated Power Markets”, Stanford Energy Modeling Forum, September 1997.

    Google Scholar 

  8. Proceedings of the Workshop on Available Transfer Capability, National Science Foundation, June 26–28, 1997.

    Google Scholar 

  9. Ilić, M., Galiana, F., Fink, L., Bose, A., Mallet, P., Othman, H., “Transmission Capacity in Power Networks”, International Journal of Electrical Power and Energy Systems, 1998 (also, Proceedings of the Power Systems Computation Conference, Dresden, Germany, August 1996.)

    Google Scholar 

  10. Marceau, R.J., Malihot, R., Galiana, F.D., “A generalized shell for dynamic security analysis in operations planning”, IEEE Trans. on Power Systems, vol. 8, pp. 1099–1106, August 1993.

    Article  Google Scholar 

  11. Cheng, J., Galiana, F.D., McGillis, D., “Studies of bilateral contracts with respect to steady state security in a deregulated environment”, Proceedings of the 20th International Conference on Power Industry Computer Applications, pp. 31–36, May 11–16, Columbus, OH.

    Google Scholar 

  12. Radinskaia, E., Galiana, F.D., “Generation scheduling and the switching curve law”, the IEEE Transactions on Power Systems (submitted for review, December 1997.)

    Google Scholar 

  13. Hunt, S., Shuttleworth, G., Competition and Choice in Electricity, John Wiley, 1996.

    Google Scholar 

  14. Hunt, S., Shuttleworth, G. “Unlocking the grid”, IEEE Spectrum, July 1996, pp. 20–25.

    Google Scholar 

  15. Fink, L.H., Ilic, M.D., Galiana, F. D., “Transmission access rights and tariffs”, Electric Power Systems Research 43 (1997) 197–206.

    Article  Google Scholar 

  16. Younes, Z., Ilic, M., “Physical and Financial Rights for Imperfect Electric Power Markets”, M.I.T. LEES WP 97–005, May 1997.

    Google Scholar 

  17. Ilić, M.D., Hyman, L., Allen, E., Cordero, R., Yu, C-N., “Interconnected System Operations and Expansion in a Changing Industry: Coordination vs. Competition”,, pp. 307–355, in The Virtual Utility: Accounting, Technology and Competitive Aspects of the Emerging Industry,Shimon Awerbuch and Alistair Preston (coeditors), Kluwer Academic Publishers, 1997, series on Topics in Regulatory Economics and Policy Series.

    Google Scholar 

  18. Hyman, L.S., Ilic, M., “Scarce resource, Real Business or Threat to Profitability?”, Public Utilities Fortnightly, October 1, 1997.

    Google Scholar 

  19. Ilić, M., Hyman, L.S., “Transmission Scarcity: Who Pays?”, The electricity Journal, July 1997, pp. 38–49.

    Google Scholar 

  20. Ilić, M.D., Liu, S.X., “Hierarchical Power Systems Control: Its Value in a Changing Electric Power Industry”, Monograph in the Springer-Verlag London Limited Series, Advances in Industrial Control, March 1996.

    Google Scholar 

  21. Paul, J.P., Leost, J.Y., Tesseron, J.M., “Survey of the secondary voltage control in France”, IEEE Trans. on Power Systems, vol. PWRS-2, 1987.

    Google Scholar 

  22. Bernard, J., Either, R., Mount, T., Schulze, W., Zimmerman, R., Gan, D., Murillo-Sanchez, C., Thomas, R., Schuler, R., “Experimental results for single period auctions”, Proc. of the 31st Annual Hawaii International Conference on System Sciences, vol. III, 1998, pp. 15–23.

    Google Scholar 

  23. North American Electric Reliability Council, “NERC Policy on Generation Control and Performance”, 1997.

    Google Scholar 

  24. Ilić, M.D., Graves, F.C., Fink, L.H., DiCaprio, A., “A Framework for Operations in Competitive Open Access Environment”, The Electricity Journal, March 1996, Special Issue on Restructuring of the Utility Industry.

    Google Scholar 

  25. Interconnected Operations Services: Defining system requirements under open access, NERC working document, 1997.

    Google Scholar 

  26. Cohn, N., “Research Opportunities in the Control of Bulk Power and Energy Transfers on Interconnected Systems”, Special Report on Power System Planning and Operations: Future Problems and research Needs, EPRI EL-377-SR, February 1977.

    Google Scholar 

  27. VanSlyck, L., “A brief Overview of Control Criteria Development”, IEEE Winter Power Meeting, February 1997 (submitted).

    Google Scholar 

  28. Fernando, C., Kleindorfer, P., Tabors, R., Pickel, F., Robinson, S., “Unbundling the US Electric Power Industry: A Blueprint for Change”, TCA Co. Report, March 1995.

    Google Scholar 

  29. Hogan, W., “Contract Networks for Electric Power Transmission”, Journal of Regulatory Economics, vol. 4, 1992.

    Google Scholar 

  30. Hogan, W., “To Pool or Not to Pool: A Distracting Debate”, Public Utilities Fortnightly, January 1, 1995.

    Google Scholar 

  31. Lecinq, B.S., Peak-load Pricing for Transmission in a Deregulated Electric Utility Industry, Master of Science in Technology and Public Policy Thesis, MIT, June 1996.

    Google Scholar 

  32. Lecinq, B.S., Ilic, M., “Peak-load Pricing for Electric Power Transmission”, Proceedings of the 30th Hawaii International Conference on Systems Sciences, January 1997, pp. 624–632.

    Google Scholar 

  33. Skantze, P., Closed-loop market dynamics in a deregulated electric power industry, Master thesis, M.I.T., Department of Electrical Engineering and Computer Science, February 1998.

    Google Scholar 

  34. Johnson, R., Oren, S., Svoboda, A., “Equity and Efficiency of Unit cornmittment in Competitive Electricity Markets”, Washington D.C, June 1–2, 1995.

    Google Scholar 

  35. Li, C.A., Johnson, R.B., Svoboda, A.J., “A new unit commitment method”, IEEE Trans. on Power Systems, vol. 12, pp. 113–119, Feb 1997.

    Article  Google Scholar 

  36. Allen, E., Ilic, M., “Stochastic Unit Committment in a Deregulated Utility Industry”, Proc. of the North American Power Symposium, Univ of Wyoming, October 1997.

    Google Scholar 

  37. Wolak, F.A., “Market Design and Price Behavior in Restructured Electricity Market”, Stanford Energy Modeling Forum meeting, 1997. CAREFUL

    Google Scholar 

  38. The US Power Market: Restructuring and Risk Management Risk Publications, London, July 1997.

    Google Scholar 

  39. Kaminski,V., “The challenge of pricing and risk managing electricity derivatives”, ibid, pp. 149–175.

    Google Scholar 

  40. Graves, F., Overview of utility finance, M.I.T. lecture notes, 6. 683, October 1997.

    Google Scholar 

  41. Green, R., “The electricity contract market”, Working paper, Cambridge University, Department of Applied Economics, UK, May 1996.

    Google Scholar 

  42. Newberry,D.M., “Power markets and market power”, The Energy Journal 16 (3) 41–66.

    Google Scholar 

  43. Okuguchi, K., Expectations and Stability in Oligopoly Models, Springer-Verlag, Lecture Notes in Economics and Mathematical Systems, 1976.

    Book  MATH  Google Scholar 

  44. Backerman, S.R., Rassenti, S.J., Smith, V.L., “Efficiency and income shares in high demand energy networks: Who receives the congestion rents when a line is constrained?”, The Univ. of Arizona Working paper, January 21, 1997.

    Google Scholar 

  45. Smith, V.L., “Regulatory Reform in the Electric Power Industry”, Regulation, 1, 1996, pp. 33–46.

    Google Scholar 

  46. Samuelson, P.A., “The stability of equilibrium: Comparative Statics and Dynamics”, Econometrica, p. 111, April 1941.

    Google Scholar 

  47. Shaw, J., “A direct method for security-constrained unit commitment”, IEEE Trans. on Power Systems, vol. 10, pp. 1329–1342, August 1995.

    Article  Google Scholar 

  48. Bertsekas, D., Lauer, G., Sandell, N., Posbergh, T., “Optimal short-term scheduling of large-scale power systems”, IEEE Trans. on Automatic Control, vol. AC-28, pp. 1–11, Jan 1983.

    Google Scholar 

  49. Takriti, S., Birge, J., Long, E., “A stochastic model for the unit committment problem”, IEEE Trans. on Power Systems, vol. 11, pp. 1497–1506, August 1996.

    Article  Google Scholar 

  50. Erwin, S., et al, “Using an optimization software to lower overall electric production costs for Southern Company”, Interfaces, vol. 21, pp. 27–41, Jan 1991.

    Article  Google Scholar 

  51. Hara, K., Kimura, M., Honda, N., “ A method for planning unit committment and maintenance of thermal power systems”, IEEE Trans. on Power Apparatus and Systems, vol. PAS-85, pp. 427–436, May 1966.

    Google Scholar 

  52. Bertsekas, D., Dynamic Programming and Optimal Control: Volume I, Belmont, MA, Athena Scientific, Inc., 1995.

    Google Scholar 

  53. Kaye, R.J., Outhred, H.R., “A theory of electricity tariff design for optimal operation and investment”, IEEE Trans. on Power Systems, vol. 4, May 1989, pp. 606–613.

    Article  Google Scholar 

  54. Kaye, R.J., Outhred, H.R., Bannister, C.H., “Forward contracts for the operation of an electricity industry under spot pricing”, IEEE Trans. on Power Systems, vol. 5, February 1990, pp. 46–52.

    Article  Google Scholar 

  55. Barta, S., Varaiya, P., “Stochastic models of price adjustment”, Annals of Economic and Social Measurement, 5 /3, 1976, pp. 267–281.

    Google Scholar 

  56. Negishi, T., “The stability of a competitive economy: A survey article”, Econometrica, October 1962, pp. 635–669.

    Google Scholar 

  57. Siljak, D.D., Large-Scale Dynamic Systems,North-Holland, 1978 (chapter four on Economics: Competitive Equilibrium).

    Google Scholar 

  58. Dixit, K.A., Pindyck, S.R., Investment Under Uncertainty, Princeton University Press, 1994.

    Google Scholar 

  59. Fink,L.H., Erkman, I., “ Economic Dispatch to Match Actual Data to the Actual Problem”, Proc. EPRI 1987 Power Plant Performance and Monitoring and System Dispatch Conference, EPRI CS/EL-5251-SR, pp.4/23–43.

    Google Scholar 

  60. Ross, D.W., Kim, S., “Dynamic Economic Dispatch of Generation”, IEEE Trans. v.PAS-99, n. 6, 1980; pp. 2060–68.

    Google Scholar 

  61. Schweppe, F.C., Caramanis, M.C., Tabors, R.D., Bohn, R.E., Spot Pricing of Electricity, Kluwer Academic Publishers, 1988.

    Google Scholar 

  62. Allen, E.H., “Stochastic Unit Committment in a Restructured Electric Power Industry”, M.I.T. PhD Thesis, May 1998.

    Google Scholar 

  63. Gross, G., Finlay, D.J., “Optimal bidding strategy in competitive electricity market”, Proc. of the Power System Computation Conference, p. 815–823, Dresden, Germany, August 1996.

    Google Scholar 

  64. Kirchmayer, L.K., Economic Operation of Power Systems, John Wiley and Sons, Inc., New York, 1958.

    Google Scholar 

  65. Brown, E.H., Solution of Large Networks by Matrix Methods, John-Wiley and Sons, Inc., 1985.

    MATH  Google Scholar 

  66. Desoer, C., Kuh, E.S., Basic Circuit Theory, Mc-Graw Hill Book Co., 1969.

    Google Scholar 

  67. Alvarado, F.L., Hu. Y., Ray, D., Stevenson, R., Cashman, E., “Engineering foundations for the determination of security costs”, IEEE Trans. on Power Apparatus and Systems, vol. PWRS-6, pp. 1175–1182, August 1991.

    Google Scholar 

  68. Shirmohammadi, D., et al, “Evaluation of Transmission Network Capacity Use for Wheeling Transactions”, IEEE Trans. on Power Systems, vol. 4, October 1989.

    Google Scholar 

  69. Head, W.J., “MAPP Transmission Service Charge”, Mid-Continent Area Power Pool, Minneapolis, MN, 1996.

    Google Scholar 

  70. Ilić, M., Yoon, Y.T., Zobian, A., Paravalos, M.E., “Toward regional transmission provision and its pricing in New England”, Utilities Policy, Elsevier Science Ltd., 1997.

    Google Scholar 

  71. Ng,W.Y., “Generalized generation distribution factors for power system security evaluations”, IEEE Trans. on POwer Apparatus and Systmes, vol. PAS-100, pp. 1001–1005, March 1981.

    Google Scholar 

  72. Laffont, J-J., Tirole, J., A Theory of Incentives in Procurement and Regulation, The MIT Press, 1993.

    Google Scholar 

  73. Perez-Arriaga, I., “A conceptual model for pricing analysis of tranmsisison services”, IEEE WM 1991.

    Google Scholar 

  74. Ilić, M., Cordero, R., “On providing interconnected operations services by the end user: Case of transmission losses”, Proc. of the NSF Workshop on Restructuring, Key West, FL, November 1996.

    Google Scholar 

  75. Phelan, M., Loss Allocation Under Open Access, M.Eng. Thesis, McGill University, January 1998.

    Google Scholar 

  76. Industry Report to the Federal Energy Regualatory Commission on the Future of OASIS, Prepared by the Commercial Practices Working Group and the OASIS How Working Group, October 31, 1997.

    Google Scholar 

  77. Barker, J., Tenenbaum, B., Woolf, F., Governance and regulation of Power Polls and System Operators: An Internal Comparison, July 1997 Draft, Forthcoming Technical Paper, World Bank Industry and Energy Department.

    Book  Google Scholar 

  78. Order No. 888, Federal Energy Regualtory Commission, April 1996.

    Google Scholar 

  79. Available Transfer Capability Definitions and Determination, North American Electric Reliability Council, June 1996.

    Google Scholar 

  80. Zobian, A., Ilic, M., “Unbundling of transmission and ancillary services. Parts I and II”, IEEE Trans. on Power Systems,, May 1997, pp. 539–558.

    Google Scholar 

  81. Ilić, M., Yoon, Y.T., Zobian, A., “Available transmission capacity (ATC) and its value unde ropen access”, IEEE Trans. on Power Systems, vol. 12, May 1997, pp. 636–641.

    Article  Google Scholar 

  82. Walton, S., Tabors, R., “Zonal Transmission Pricing: Methodology and Preliminary Results from the WSCC”, Electricity Journal, November 1996, pp. 34–41.

    Google Scholar 

  83. Hogan, W.,“Nodes and zones in electricity markets: Seeking simplified congestion pricing”, IAEE Conference, San Francisco, September 1997.

    Google Scholar 

  84. Zaborszky, J. et al, “A clustered dynamic model for a class of linear autonomous systems using simple ennumerative sorting”, IEEE Trans. on Circuits and Systems, vol. CAS-29, Nov. 1982.

    Google Scholar 

  85. Happ, H., Diakoptics and Networks, Academic Press, NY, 1971.

    Google Scholar 

  86. Siljak, D.D., Decentralized Control of Complex Systems, Academic Press, Inc., 1991.

    Google Scholar 

  87. Wu, F.F., Varaiya, P., Spiller, P., Oren, S., “Folk theorems nd transmission open access: proofs and counterexamples”, POWER report PWR-23, U of California Energy Inst., Oct 1994.

    Google Scholar 

  88. Oren, S., Spiller, P., Varaiya, P., Wu, F.F., “Nodal prices and transmission rights: a crititcal appraisal”, The Electricity Journal, vol. 8, April 995, pp. 14–23.

    Google Scholar 

  89. Tan, C-W., Varaiya, P., “Interruptible electric power service contracts”, Journal of Economic Dynamics and Control 17(1993) 495–517. NorhtHolland.

    Google Scholar 

  90. Wu, F.F., Varaiya, P., “Coordinated multilateral trades for electric power networks: Theory and Implementation”, POWER PWR-031., June 1995.

    Google Scholar 

  91. Reliability Assessment 1997–2006, NERC, October 1997.

    Google Scholar 

  92. Federal Energy Regulatory Commission: Capacity reservation open access transmission tariffs; notice of proposed rulemaking, April 24, 1996 (Docket No. RM96–11–000).

    Google Scholar 

  93. Guan, X., Li, R., Luh, P., “Optimization-Based Scheduling of Cascaded Hydro Power Systems with Discrete Constraints”, Proc. of the 28th North American Power Symposium, M.I.T., November 1996.

    Google Scholar 

  94. Gedra, T., Varaiya, P., “Markets and Pricing for Interruptible Electric Power”, IEEE Trans. on Power Systems, vol. 8, February 1993, pp. 122128.

    Google Scholar 

  95. Baldick, R., Kahn, E., Contract paths, phase-shifters and efficient electricity trade, POWER report PWR-035, U of California Energy Inst., October 1995.

    Google Scholar 

  96. Elaqua, A. J., Corey, S.L., “Security constrained dispatch in the New York Power Pool”, IEEE paper no. 82 WM 084–2.

    Google Scholar 

  97. Ilić, M., Allen, E., Younes, Z., “Providing for transmission in times of scarcity: An ISO cannot do it all”, MIT LEES WP 97–003, May 1997.

    Google Scholar 

  98. Schweppe, F.C., Tabors, R.D., Kirtley, J.L., “Homeostatic control for electric power usage”, IEEE Spectrum, July 1982, pp. 44–48.

    Google Scholar 

  99. Ilić, M., Skantze, P., Yu, C-N., “Market-based frequency regulation: Can it be done, why and how?”, Proc. of the American Power Conference, Chicago, IL, April 1–3, 1997.

    Google Scholar 

  100. Ward, C., Colloquium on economic provision of reactive power for system voltage control, The IEE Savoy Place, London WC2R OBL, UK, October 9, 1996.

    Google Scholar 

  101. Zobian, A., Ile, M., “A steady-state voltage monitoring and control algorithm using localized least squares minimization of load voltage deviation”, IEEE Trans. on Power Systems, 1995.

    Google Scholar 

  102. Alvarado, F.L., Broehm, R., Kirsch, L., Panvini, A., “Retail Pricing of Reactive Power Service”, Proc. of the EPRI Conference on Innovative Approaches to Electricity Pricing, March 27–29, La Jolla, CA, 1996.

    Google Scholar 

  103. Banales, S., Ilic, M., “On the role and value of voltage support in a deregulated power industry”, Proceedings of the North American Power Symposium, Malarmee, Wyoming, October 1997.

    Google Scholar 

  104. Verhese, G.C., Perez-Arriaga, I.J., Schweppe, F.C., Tsai, K.W., “Selective Modal Analysis in Electric Power Systems”, EPRI EL-2830, Research project 1764–8, Final Report, January 1983.

    Google Scholar 

  105. Ilić, M., Hyman, L.S., “Incentives for Transmission Investments”, Proceedings of the EPRI Workshop on Power delivery in the 21st Century, La Jolla, CA, November 18–21, 1997.

    Google Scholar 

  106. Skantze, P., Ilic, M., “Price-driven model for system control under open access: short-term gaming for profit vs. system regulation”, Proc. of the North American Power Symposium, M.I.T., Cambridge, MA, November 1996.

    Google Scholar 

  107. Ilić, M., Yu, C-N., “Minimal System Regulation and Its Value in a Changing Industry”, Proceedings of the IEEE Conference on Control Applications, Dearborn, MI, September, 1996.

    Google Scholar 

  108. Ilić, M., Liu, X.S., Eidson, B.D., Yu, C-N., Allen, E.H., Skantze, P., A Unified Approach to Real-Time Control, Accounting, and Supporting Policies for Effective Energy Management under Competition, MIT-EL 97–001, January 1997.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

Copyright information

© 1998 Springer Science+Business Media New York

About this chapter

Cite this chapter

Ilić, M., Galiana, F. (1998). Power Systems Operation: Old vs. New. In: Power Systems Restructuring. The Springer International Series in Engineering and Computer Science. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-2883-5_2

Download citation

  • DOI: https://doi.org/10.1007/978-1-4757-2883-5_2

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4419-5038-3

  • Online ISBN: 978-1-4757-2883-5

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics