A framework for operations in the competitive open access environment
A pragmatic framework is available for maintaining reliable system operations in the context of an unbundled open access environment, while fostering a competitive supply/demand market. The proposed framework shows how incentives will meld a decentralized, competitive profit-driven market and a centrally directed services market together into a reliable free market. The electric power industry is in the midst of developing responses to the Federal Energy Regulatory Commission`s mandate to provide open access transmission service. The benfits and consequences of alternative financial, regulatory, and operational designs for unbundling and restructuring are being actively debated within the industry. Each alternative must meet three goals: (1) provide open access to transmission facilities; (2) create competition among generation resources; and (3) preserve system reliability. The differences among the alternatives are in details of how to meet these goals. It is a question of where and how to draw the lines between the infrastructure and the ancillary services required to support that infrastructure. Of particular note is the debate between proponents of a Poolco and the proponents of Bilateral scheduling transactions. Both schemes incorporate the use of a third-party Independent System Operator (ISO). The ISO is required to maintain system security and reliability in a non-discriminatory fashion. Much of this debate has taken place on a philosophical level, more concerned with competitive paradigms and analogies to other industries than with an informed engineering discussion. The authors try to put some practical concerns into this discussion.
- OSTI ID:
- 457699
- Journal Information:
- Electricity Journal, Journal Name: Electricity Journal Journal Issue: 3 Vol. 9; ISSN ELEJE4; ISSN 1040-6190
- Country of Publication:
- United States
- Language:
- English
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