Transmission access raises unresolved economic issues

Journal Article · Mon Aug 01 00:00:00 EDT 1994 · IEEE Power Engineering Review (Institute of Electrical and Electronics Engineers); (United States)

DOI:https://doi.org/10.1109/39.296006· OSTI ID:7190142

Happ, H H

The electric utility industry is in the process of gradual change from a fully regulated industry to one of partial deregulation. Instead of relying on regulation to achieve a fair and equitable price to the consumer for electric energy, the reliance is placed more and more on market forces, through competition, to provide wholesale energy at the best market price. Clearly, open transmission access is required to create a viable competitive wholesale market for new generation resources. This article describes four unresolved, or at least partially unresolved, issues associated with transmission access for wholesale wheeling. Wheeling has been defined as the use of a utility's transmission facilities to transmit power for other buyers and sellers. At least three parties are involved in a wheeling transaction: a seller, a buyer, and one or more wheeling utilities that transmit the power from the seller to the buyer. This article considers wholesale or bulk wheeling only, and does not consider retail wheeling. The four unresolved economic issues described in this article pertain to transmission access: Actual cost of providing transmission services, Methodology or methodologies used in evaluating the cost of wheeling, Contract path versus the actual power flows of the wheel, Issues associated with the formation of transmission regions.

• OSTI ID: 7190142
• Journal Information: IEEE Power Engineering Review (Institute of Electrical and Electronics Engineers); (United States), Vol. 14:8; ISSN 0272-1724
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
29 ENERGY PLANNING
POLICY AND ECONOMY
POWER TRANSMISSION
ECONOMICS
RATE STRUCTURE
COMPETITION
ELECTRIC UTILITIES
PUBLIC UTILITIES
200600* - Fossil-Fueled Power Plants- Economic
Industrial
& Business Aspects- (1990-)
296000 - Energy Planning & Policy- Electric Power