Prepared for Lawrence Berkeley National Laboratory by DNV GL Energy.

ER - TY - JOUR T1 - An Engineering-Economic Approach to Transmission Planning Under Market and Regulatory Uncertainties: WECC Case Study JF - IEEE Transactions on Power Systems Y1 - 2014/01// SP - 307 EP - 317 A1 - Francisco D. Munoz A1 - Benjamin F. Hobbs A1 - Jonathan L. Ho A1 - Saamrat Kasina KW - RM11-002 KW - transmission planning KW - WECC AB - We propose a stochastic programming-based tool to support adaptive transmission planning under market and regulatory uncertainties. We model investments in two stages, differentiating between commitments that must be made now and corrective actions that can be undertaken as new information becomes available. The objective is to minimize expected transmission and generation costs over the time horizon. Nonlinear constraints resulting from Kirchhoff's voltage law are included. We apply the tool to a 240-bus representation of the Western Electricity Coordinating Council and model uncertainty using three scenarios with distinct renewable electricity mandates, emissions policies, and fossil fuel prices. We conclude that the cost of ignoring uncertainty (the cost of using naive deterministic planning methods relative to explicitly modeling uncertainty) is of the same order of magnitude as the cost of first-stage transmission investments. Furthermore, we conclude that heuristic rules for constructing transmission plans based on scenario planning can be as suboptimal as deterministic plans. VL - 29 IS - 1 JO - IEEE Trans. Power Syst. DO - 10.1109/TPWRS.2013.2279654 ER - TY - JOUR T1 - Equivalent Line Limit Calculation for Power System Equivalent Networks JF - IEEE Transactions on Power Systems Y1 - 2014/ SP - 2338 EP - 2346 A1 - Saurav Mohapatra A1 - Wonhyeok Jang A1 - Thomas J. Overbye KW - CERTS KW - electricity markets KW - power system reliability KW - reliability and markets KW - RM11-001 KW - SuperOPF AB - This paper focuses on the relatively unexplored subject of creating limit-preserving equivalents (LPEs). There is a push to develop LPEs for power system interconnections to be used in markets and reliability studies. The equivalents that exist for these interconnections do not capture thermal limits of equivalent lines, which results in their transmission limits being significantly different from the original interconnection limits. Assigning noninfinite and nonzero limits to equivalent lines is the niche of this paper. This is done by considering an unloaded network, which is operating point independent. A solution method is developed and discussed, which is capable of assigning lower, best, and upper estimates for equivalent line limits and is proposed for use towards developing LPEs. VL - 29 IS - 5 JO - IEEE Trans. Power Syst. DO - 10.1109/TPWRS.2014.2300176 ER - TY - CONF T1 - The Effect of Stochastic Wind Generation on Ramping Costs and the System Benefits of Storage T2 - 2013 46th Hawaii International Conference on System Sciences (HICSS) Y1 - 2013/01// SP - 2271 EP - 2281 A1 - Alberto J Lamadrid A1 - Timothy D. Mount A1 - Wooyoung Jeon KW - load modeling KW - reliability KW - reliability and markets KW - RM12-004 KW - wind power AB - The objective of this paper is to demonstrate 1) how adding storage capacity to a network can mitigate the variability of wind generation and increase the system benefits, and 2) how the stochastic characteristics of the wind generation affect the system benefits of storage capacity. Two types of storage are considered. One represents utility-scale storage that is collocated at the wind sites, and the other represents an identical amount of deferrable demand located at load centers. The simulation is based on a multi-period, stochastic, Security Constrained Optimal Power Flow (SCOPF) and a reduction of the NPCC network. The results demonstrate that storage capacity can dispatch more wind, mitigate the ramping costs associated with wind variability, and reduce the amount of reserve capacity needed. Deferrable demand can further enhance the system operation, by flattening the typical daily pattern of load, reducing the peak system load and reducing the amount of installed capacity needed on the supply side. JF - 2013 46th Hawaii International Conference on System Sciences (HICSS) PB - IEEE CY - Wailea, HI, USA SN - 978-1-4673-5933-7 DO - 10.1109/HICSS.2013.631 ER - TY - CONF T1 - Estimation of Transmission Line Parameters from Historical Data T2 - 2013 46th Hawaii International Conference on System Sciences (HICSS) Y1 - 2009/01// SP - 2151 EP - 2160 A1 - Davis, Katherine R. A1 - Sudipta Dutta A1 - Thomas J. Overbye A1 - Jim Gronquist KW - power system reliability KW - reliability and markets KW - RM11-001 KW - SuperOPF KW - wind power AB - Power system analysis results are based on a model of the system. The model is often assumed known, yet it may contain errors. Model errors can impact the accuracy of the results. This paper utilizes historical data over time to extract the transmission line model parameters. The focus is on application of line parameter estimation techniques for real data from a North American utility. The approach in this paper focuses on the challenges of dealing with uncertainty and errors encountered in the real-world data. Future applications are also discussed. JF - 2013 46th Hawaii International Conference on System Sciences (HICSS) PB - IEEE CY - Wailea, HI, USA SN - 978-1-4673-5933-7 DO - 10.1109/HICSS.2013.206 ER - TY - CONF T1 - Efficient proactive transmission planning to accommodate renewables T2 - 2012 IEEE Power & Energy Society General Meeting Y1 - 2012/07// SP - 1 EP - 7 A1 - Francisco D. Munoz A1 - Benjamin F. Hobbs A1 - Saamrat Kasina KW - CERTS KW - reliability and markets KW - RM11-002 KW - transmission planning AB - There is a growing need for tools to help decision makers to proactively plan for transmission infrastructure to accommodate renewables under gross market and regulatory uncertainties. In this paper, we make three contributions. First, we discuss how the current approaches aiming to proactively plan for transmission to accommodate renewables in the US are mathematically inaccurate, particularly with regards to their treatment of uncertainty. Second, improving existing models, we develop a two-stage stochastic network-planning model that takes into account Kirchhoff's laws, uncertainties, generators' response, and recourse investment decisions. Third, for large-scale networks, we demonstrate the use of Benders decomposition, taking advantage of the block-structure of the constraints. Testing our model on a simplified representation of California, we show that there are costs of ignoring uncertainty and that trying to identify robust solutions from a series of deterministic solutions is not necessarily effective, and indeed could result in higher costs than ignoring uncertainty altogether. JF - 2012 IEEE Power & Energy Society General Meeting PB - IEEE CY - San Diego, CA SN - 978-1-4673-2727-5 DO - 10.1109/PESGM.2012.6345237 ER - TY - CONF T1 - An efficient transient stability constrained optimal power flow using trajectory sensitivity T2 - 2012 North American Power Symposium (NAPS) Y1 - 2012/09// SP - 1 EP - 6 A1 - Lei Tang A1 - James D. McCalley KW - AA09-001 KW - optimal power flow (OPF) KW - RTGRM KW - System Security Tools AB - A well-structured two-step efficient transient stability constrained optimal power flow is proposed. The transient stability constraints are obtained through time domain simulation and its corresponding trajectory sensitivity calculation. The process to obtain the constraints is an independent step from the dispatch problem solving. The added transient stability constraints prevent first swing instability, and bring much less computational burden than steady state security constraints. The proposed method was tested on a 9-bus system and the New England 39-bus system. JF - 2012 North American Power Symposium (NAPS) PB - IEEE CY - Champaign, IL, USA SN - 978-1-4673-2306-2 DO - 10.1109/NAPS.2012.6336308 ER - TY - CONF T1 - Electric vehicle charging and wind power integration: Coupled or decoupled electricity market resources? T2 - 2012 IEEE Power & Energy Society General Meeting Y1 - 2012/07// SP - 1 EP - 7 A1 - Keenan F. Valentine A1 - Temple, W. G. A1 - K. Max Zhang KW - reliability and markets KW - RM11-009 AB - This study aims to investigate the synergetic benefit of wind power and plug-in electric vehicles (PEVs) to the power system and to each other. We consider the integration of wind power and intelligent charging of PEVs into the wholesale electricity market of the New York Control Area (NYCA). We use a data-based two-settlement energy market model for the NYCA and a commuter transportation model for New York State with 7,560 scenarios. They include curtailable and must-take wind power penetrations of up to 25%, PEV penetrations of up to 25% and Level 1/Level 2 mixtures of charger infrastructure in a span of 21 summer days in 2006. Preliminary results suggest that wind power and intelligently charged PEVs greatly benefit the NYCA as independent system-level resources. However, there does not appear to be noticeable system benefits and dispatch correlations from coupling must-take wind and PEVs. Consequently, the traditional view of synergy in the grid integration of wind power and PEV charging may not always hold, prompting the need for additional studies before designing the relevant energy policies. JF - 2012 IEEE Power & Energy Society General Meeting PB - IEEE CY - San Diego, CA SN - 978-1-4673-2727-5 DO - 10.1109/PESGM.2012.6344885 ER - TY - CONF T1 - EmPower: An Efficient Load Balancing Approach for Massive Dynamic Contingency Analysis in Power Systems T2 - 2012 SC Companion: High Performance Computing, Networking, Storage and Analysis (SCC) Y1 - 2012/11// SP - 289 EP - 298 A1 - Siddhartha Kumar Khaitan A1 - James D. McCalley KW - AA09-001 KW - RTGRM KW - System Security Tools AB - Power system simulations involving solution of thousands of stiff differential and algebraic equations (DAE) are computationally intensive and yet crucial for grid security and reliability. Online simulations of a large number of contingencies require very high computational efficiency. Furthermore, since the simulation times across the contingencies vary considerably, dynamic load balancing of parallel contingency analysis (CA) is required to ensure maximum resource utilization. However, the state-of-the-art contingency analysis techniques fail to fulfill this requirement. In this paper, we present EmPower, an Efficient load balancing approach for massive dynamic contingency analysis in Power systems. For single contingency analysis, EmPower uses time domain simulations and incorporates efficient numerical algorithms for solving the DAE. Further, the contingency analysis approach is scaled for large scale contingency analysis using MPI based parallelization. For enabling an efficient, non-blocking implementation of work-stealing, multithreading is employed within each processor. Simulations of thousands of contingencies on a supercomputer have been performed and the results show the effectiveness of EmPower in providing good scalability and huge computational savings. JF - 2012 SC Companion: High Performance Computing, Networking, Storage and Analysis (SCC) PB - IEEE CY - Salt Lake City, UT SN - 978-1-4673-6218-4 DO - 10.1109/SC.Companion.2012.47 ER - TY - RPRT T1 - An Examination of Temporal Trends in Electricity Reliability Based on Reports from U.S. Electric Utilities Y1 - 2012/01// A1 - Joseph H. Eto A1 - Kristina Hamachi LaCommare A1 - Peter H. Larsen A1 - Annika Todd A1 - Emily Fisher KW - electricity markets and policy group KW - electricity reliability KW - electricity reliability trends KW - transmission planning AB - Since the 1960s, the U.S. electric power system has experienced a major blackout about once every 10 years. Each has been a vivid reminder of the importance society places on the continuous availability of electricity and has led to calls for changes to enhance reliability. At the root of these calls are judgments about what reliability is worth and how much should be paid to ensure it.In principle, comprehensive information on the actual reliability of the electric power system and on how proposed changes would affect reliability ought to help inform these judgments. Yet, comprehensive, national-scale information on the reliability of the U.S. electric power system is lacking.This report helps to address this information gap by assessing trends in U.S. electricity reliability based on information reported by electric utilities on power interruptions experienced by their customers. Our research augments prior investigations, which focused only on power interruptions originating in the bulk power system, by considering interruptions originating both from the bulk power system and from within local distribution systems. Our research also accounts for differences among utility reliability reporting practices by employing statistical techniques that remove the influence of these differences on the trends that we identify.The research analyzes up to 10 years of electricity reliability information collected from 155 U.S. electric utilities, which together account for roughly 50% of total U.S. electricity sales. The questions analyzed include:Are there trends in reported electricity reliability over time?How are trends in reported electricity reliability affected by the installation or upgrade of an automated outage management system?How are trends in reported electricity reliability affected by the use of IEEE Standard 1366-2003? U2 - LBNL-5268E ER - TY - CONF T1 - Efficient Pricing and Capital Recovery for Infrastructure over Time: Incentives and Applications for Electric Transmission Expansion T2 - 2011 44th Hawaii International Conference on System Sciences (HICSS 2011) Y1 - 2011/01// SP - 1 EP - 9 A1 - Schuler, R E KW - RM11-002 AB - Classic economic theory provides a conundrum: different short- and long-run pricing prescriptions for large capital-intensive infrastructure projects. Short run prices should cover only the operating costs of the facility; otherwise, the project may go under-utilized. Only as the facility becomes congested are additional fees warranted to allocate its use efficiently. But capital costs are included in user-fees only when additional demand would force the construction of more capacity. Once built, however, the price should fall, resulting in schizophrenic behavior by customers and investors. By integrating the assessment and assignment of congestion fees with other economic principles like "peak-load-pricing" and the "inverse-elasticity" rule for apportioning capital costs, a sequence of pricing rules is described that can lead to a smooth, efficient and fair evolution of prices over space and time. These pricing principles also result in compatible incentives for all parties, and they complement several existing electricity system planning processes. JF - 2011 44th Hawaii International Conference on System Sciences (HICSS 2011) PB - IEEE CY - Kauai, HI SN - 978-1-4244-9618-1 DO - 10.1109/HICSS.2011.180 ER - TY - CONF T1 - Evaluation of mode estimation accuracy for small-signal stability analysis T2 - 2011 North American Power Symposium (NAPS 2011) Y1 - 2011/08// SP - 1 EP - 7 A1 - Jim Follum A1 - Ning Zhou A1 - John W. Pierre KW - AA09-002 KW - AARD KW - Automatic Switchable Network (ASN) KW - load modeling KW - power system monitoring AB - This paper proposes a method for determining electromechanical mode estimate accuracy by relating mode estimate error to residual values. Mode frequency and damping ratio were estimated using Prony analysis and residuals were calculated for a 17-machine model with varying levels of load noise. Mode estimate error and residuals were found to increase proportionally to each other as noise values were increased, revealing a distinctly linear relationship. The use of these results to develop appropriate confidence in models is discussed. With the relationship established, a method of predicting mode estimate error values based on residuals in the western North American power system (wNAPS) was developed. The potential of this method to evaluate the confidence level of mode estimates is examined. JF - 2011 North American Power Symposium (NAPS 2011) PB - IEEE CY - Boston, MA, USA SN - 978-1-4577-0417-8 DO - 10.1109/NAPS.2011.6024893 ER - TY - CONF T1 - Event classification and identification based on characteristic ellipsoid of phasor measurement T2 - 2011 North American Power Symposium (NAPS 2011) Y1 - 2011/08// SP - 1 EP - 6 A1 - Jian Ma A1 - Ruisheng Diao A1 - Yuri V. Makarov A1 - Pavel V. Etingov A1 - Jeffery E. Dagle KW - AA07-002 KW - AARD KW - Power system dynamics AB - In this paper, a method to classify and identify power system events based on the characteristic ellipsoid of phasor measurement is presented. The decision tree technique is used to perform the event classification and identification. Event types, event locations and clearance times are identified by decision trees based on the indices of the characteristic ellipsoid. A sufficiently large number of transient events were simulated on the New England 10-machine 39-bus system based on different system configurations. Transient simulations taking into account different event types, clearance times and various locations are conducted to simulate phasor measurement. Bus voltage magnitudes and recorded reactive and active power flows are used to build the characteristic ellipsoid. The volume, eccentricity, center and projection of the longest axis in the parameter space coordinates of the characteristic ellipsoids are used to classify and identify events. Results demonstrate that the characteristic ellipsoid and the decision tree are capable to detect the event type, location, and clearance time with very high accuracy. JF - 2011 North American Power Symposium (NAPS 2011) PB - IEEE CY - Boston, MA, USA SN - 978-1-4577-0417-8 DO - 10.1109/NAPS.2011.6024872 ER - TY - JOUR T1 - Economic analysis of the N-1 reliable unit commitment and transmission switching problem using duality concepts JF - Energy Systems Y1 - 2010/ SP - 165 EP - 195 A1 - Richard P. O'Neill A1 - Kory W. Hedman A1 - Krall, Eric A. A1 - Anthony Papavasiliou A1 - Shmuel S. Oren KW - power system economics KW - power system reliability KW - reliability and markets KW - RM08-001 AB - Currently, there is a national push for a smarter electric grid, one that is more controllable and flexible. Only limited control and flexibility of electric assets is currently built into electric network optimization models. Optimal transmission switching is a low cost way to leverage grid controllability: to make better use of the existing system and meet growing demand with existing infrastructure. Such control and flexibility can be categorized as a “smart grid application” where there is a co-optimization of both generators or loads and transmission topology. In this paper we form the dual problem and examine the multi-period N-1 reliable unit commitment and transmission switching problem with integer variables fixed to their optimal values. Results including LMPs and marginal cost distributions are presented for the IEEE RTS 96 test problem. The applications of this analysis in improving the efficiency of ISO and RTO markets are discussed. VL - 1 IS - 2 JO - Energy Syst DO - 10.1007/s12667-009-0005-6 ER - TY - JOUR T1 - Efficient Market Design and Public Goods, Part II: Theoretical Results JF - International Journal of Emerging Electric Power Systems Y1 - 2010/01// A1 - David Toomey A1 - William D. Schulze A1 - Robert J. Thomas A1 - James S. Thorp A1 - Daniel J. Tylavsky A1 - Richard E. Schuler KW - CERTS KW - electricity markets KW - market design KW - power system economics KW - reliability and markets AB - Electric power is traditionally comprised of valued services, including real and reactive power, voltage, frequency and reliability in its most general sense. In this second part of our two-part paper we show mathematically that of these, only real and reactive power are purely private goods, in that power consumed by one customer cannot be used by another and customers can be excluded from receiving any power. The other ancillary services, including voltage, frequency and reliability are shown to be public goods. The first order conditions presented clearly illustrate that the public goods occurring in electric power systems comprise a significant problem for market design. VL - 11 IS - 1 DO - 10.2202/1553-779X.2300 ER - TY - RPRT T1 - Effect of Heat and Electricity Storage and Reliability on Microgrid Viability: A Study of Commercial Buildings in California and New York States Y1 - 2009/03// SP - 106 A1 - Michael Stadler A1 - Chris Marnay A1 - Afzal S. Siddiqui A1 - Judy Lai A1 - Brian E. Coffey A1 - Hirohisa Aki KW - DER-CAM KW - distributed energy resources (der) AB - Berkeley Lab has for several years been developing methods for selection of optimal microgrid systems, especially for commercial building applications, and applying these methods in the Distributed Energy Resources Customer Adoption Model (DER-CAM). This project began with 3 major goals:to conduct detailed analysis to find the optimal equipment combination for microgrids at a few promising commercial building hosts in the two favorable markets of California and New York,to extend the analysis capability of DER-CAM to include both heat and electricity storage, andto make an initial effort towards adding consideration of power quality and reliability (PQR) to the capabilities of DER-CAM.All of these objectives have been pursued via analysis of the attractiveness of a Consortium for Electric Reliability Technology Solutions (CERTS) Microgrid consisting of multiple nameplate 100 kW Tecogen Premium Power Modules (CM-100). This unit consists of an asynchronous inverter-based variable speed internal combustion engine genset with combined heat and power (CHP) and power surge capability. The essence of CERTS Microgrid technology is that smarts added to the on-board power electronics of any microgrid device enables stable and safe islanded operation without the need for complex fast supervisory controls. This approach allows plug and play development of a microgrid that can potentially provide high PQR with a minimum of specialized site-specific engineering. A notable feature of the CM-100 is its time-limited surge rating of 125 kW, and DER-CAM capability to model this feature was also a necessary model enhancement. PB - LBNL CY - Berkeley U2 - LBNL-1334E ER - TY - CONF T1 - Electromechanical mode shape estimation based on transfer function identification using PMU measurements T2 - 2009 IEEE Power & Energy Society General Meeting Y1 - 2009/07// SP - 1 EP - 7 A1 - Ning Zhou A1 - Zhenyu Huang A1 - Luke Dosiek A1 - Dan Trudnowski A1 - John W. Pierre KW - AA07-001 KW - AARD KW - Automatic Switchable Network (ASN) KW - phasor measurement units (PMUs) KW - Power system modeling AB - Power system mode shapes are a key indication of how dynamic components participate in low-frequency oscillations. Traditionally, mode shapes are calculated from a linearized dynamic model. For large-scale power systems, obtaining accurate dynamic models is very difficult. Therefore, measurement-based mode shape estimation methods have certain advantages, especially for the application of real-time small signal stability monitoring. In this paper, a measurement-based mode shape identification method is proposed. The general relationship between transfer function (TF) and mode shape is derived. As an example, a least square (LS) method is implemented to estimate mode shape using an autoregressive exogenous (ARX) model. The performance of the proposed method is evaluated by Monte-Carlo studies using simulation data from a 17-machine model. The results indicate the validity of the proposed method in estimating mode shapes with reasonably good accuracy. JF - 2009 IEEE Power & Energy Society General Meeting PB - IEEE CY - Calgary, Canada SN - 978-1-4244-4241-6 DO - 10.1109/PES.2009.5275924 ER - TY - CONF T1 - Environmental regulation in transmission-constrained electricity markets T2 - 2009 IEEE Power & Energy Society (PES) General Meeting Y1 - 2009/07// SP - 1 EP - 8 A1 - Anthony Papavasiliou A1 - Chen, Yihsu A1 - Shmuel S. Oren KW - CERTS KW - electricity markets KW - reliability and markets KW - RM10-001 AB - We discuss potential competitive effects of regulating carbon emissions in a transmission constrained electricity market. We compare two regulatory instruments, renewable portfolio standards and taxing emmissions. We derive general conclusions about impacts on prices and output on a three node network. We find that renewable portfolio standards increase the market power of nonpolluting generators whereas the tax is market-power neutral. We verify our conclusions through simulations. JF - 2009 IEEE Power & Energy Society (PES) General Meeting PB - IEEE CY - Calgary, Canada SN - 978-1-4244-4241-6 DO - 10.1109/PES.2009.5275408 ER - TY - RPRT T1 - Estimated Value of Service Reliability for Electric Utility Customers in the United States Y1 - 2010/06// SP - 130 A1 - Michael J. Sullivan A1 - Matthew G. Mercurio A1 - Josh A. Schellenberg KW - consortium for electric reliability technology solutions (certs) KW - electricity reliability trends KW - ICE Calculator KW - power system economics KW - power system reliability publications KW - value of service reliability AB - Information on the value of reliable electricity service can be used to assess the economic efficiency of investments in generation, transmission and distribution systems, to strategically target investments to customer segments that receive the most benefit from system improvements, and to numerically quantify the risk associated with different operating, planning and investment strategies. This paper summarizes research designed to provide estimates of the value of service reliability for electricity customers in the US. These estimates were obtained by analyzing the results from 28 customer value of service reliability studies conducted by 10 major US electric utilities over the 16 year period from 1989 to 2005. Because these studies used nearly identical interruption cost estimation or willingness-to-pay/accept methods it was possible to integrate their results into a single meta-database describing the value of electric service reliability observed in all of them. Once the datasets from the various studies were combined, a two-part regression model was used to estimate customer damage functions that can be generally applied to calculate customer interruption costs per event by season, time of day, day of week, and geographical regions within the US for industrial, commercial, and residential customers. Estimated interruption costs for different types of customers and of different duration are provided. Finally, additional research and development designed to expand the usefulness of this powerful database and analysis are suggested. U2 - LBNL-2132E ER - TY - CONF T1 - Estimating the system costs of wind power forecast uncertainty T2 - 2009 IEEE Power & Energy Society General Meeting Y1 - 2009/07// SP - 1 EP - 4 A1 - Judith B. Cardell A1 - C. Lindsay Anderson KW - electricity markets KW - power system economics KW - Power system modeling KW - reliability and markets KW - RM07-004 KW - wind power AB - Uncertainty in forecasts of wind power generation raises concerns of integrating wind power into power system operations and electricity markets at acceptable costs. The analysis presented in this paper uses an optimal power flow (OPF) model in a Monte Carlo Simulation (MCS) framework to estimate the additional cost of power system operation with uncertain output from a wind farm. A base case dispatch is established along with alternate dispatches based upon a probability distribution of real time wind power generation. The cost of the uncertainty in wind power forecasts is then quantified in terms of the difference in production cost between the base case and the cost for system dispatch under scenarios drawn from the distribution of real time wind power generation. Using various regional load levels and ramp capabilities of other generators, the results from the OPF and MCS show that wind power forecast uncertainty for the test system can increase production cost between 2.5% and 11%. JF - 2009 IEEE Power & Energy Society General Meeting PB - IEEE CY - Calgary, Canada SN - 978-1-4244-4241-6 DO - 10.1109/PES.2009.5275882 ER - TY - CONF T1 - Evaluating the Net Benefits of Investing in New Wind and Transmission Capacity on a Network T2 - 2009 42nd Hawaii International Conference on System Sciences (HICSS) Y1 - 2009/01// SP - 1 EP - 10 A1 - Timothy D. Mount A1 - Alberto J Lamadrid A1 - Surin Maneevitjit A1 - Robert J. Thomas A1 - Ray D. Zimmerman KW - reliability and markets KW - RM05-001 KW - SuperOPF AB - The SuperOPF provides a framework linking the short-run criterion of "operating reliability" and the long-run criterion of "system adequacy" on an AC network. This is accomplished by allowing for load shedding as an expensive option to meet contingencies. The high cost of "energy-not-served" implies that some equipment can be very valuable in contingencies if it reduces the amount of energy-not-served. Calculating the nodal prices correctly for different states of the system provides the basis for determining the economic value of improved reliability and investments in additional network capacity. The objective of this paper is to extend the cooptimization framework to determine the net economic benefit of adding an intermittent source of generation, such as wind capacity, and new transmission capacity to a network. Using the cooptimization framework, this situation can be represented by defining new contingencies that correspond to unpredicted changes in the level of generation from the wind capacity. Using the SuperOPF, the amount of additional reserve capacity that is required to maintain reliability with higher levels of wind penetration is determined endogenously. An empirical example illustrates how the SuperOPF can be used to determine the expected annual cost of meeting load after wind capacity is installed at a remote location. These annual costs are reduced when additional transmission capacity is installed to reduce congestion in transferring wind generation to a load center. Hence, the economic issue is to determine whether the savings in production costs are high enough to cover the annualized cost of investing in the new transmission capacity. JF - 2009 42nd Hawaii International Conference on System Sciences (HICSS) PB - IEEE CY - Waikoloa, Hawaii, USA SN - 978-0-7695-3450-3 DO - 10.1109/HICSS.2009.201 ER - TY - JOUR T1 - Efficient and Reliable Reactive Power Supply and Consumption - Insights from an Integrated Program of Engineering and Economics Research JF - The Electricity Journal Y1 - 2008/01// SP - 70 EP - 81 A1 - Robert J Thomas A1 - Timothy D. Mount A1 - Richard Schuler A1 - William Schulze A1 - Ray Zimmerman A1 - Fernando L. Alvarado A1 - Bernard C. Lesieutre A1 - Philip N. Overholt A1 - Joseph H. Eto KW - Market mechanisms KW - reliability management KW - RM12-002 AB - In 2005, the Federal Energy Regulatory Commission (FERC) began discussing regulatory policy for reactive-power procurement and pricing in competitive electricity markets. This paper summarizes findings from a unique, interdisciplinary program of public-interest research that lays a formal foundation for evaluating aspects of FERC staff recommendations and offers early insights that should be useful in guiding policy implementation, specifically by:clarifying the consumers and economic characteristics of reactive power as a basis for creating incentives to appropriately price it,defining specific challenges in creating a competitive market for reactive power as well as new tools needed to help ensure such a market functions efficiently, anddemonstrating the importance of accounting for the physical characteristics of the transmission network in planning for reactive power and avoiding the exercise of market power by suppliers. PB - Elsevier VL - 21 IS - 1 N1 -The attached file is a pre-print version of an article accepted for publication in *The Electricity Journal*. To see the published version of this report, click here.

The attached report is a preprint version of an article accepted for publication by the journal *Managerial Finance *under the title "Efficiency of the New York independent system operator market for transmission congestion contracts." The published version is available from the publisher here.