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Title: The net utility revenue impact of small power producing facilities operating under spot pricing policies

Miscellaneous ·
OSTI ID:6158389

The National Energy Act, in general, and Section 210 of the Public Utilities Regulatory Policies Act (PURPA) of 1978 in particular, have dramatically stimulated increasing levels of independent non-utility power generation. As these levels of independent non-utility power generation increase, the electric utility is subjected to new and significant operational and financial impacts. One important concern is the net revenue impact on the utility which is the focus of the research discussed in this thesis and which is inextricably intertwined with the operational functions of the utility system. In general, non-utility generation, and specifically, cogeneration, impact utility revenues by affecting the structure and magnitude of the system load, the scheduling of utility generation, and the reliability of the composite system. These effects are examined by developing a comprehensive model non-utility independent power producing facilities, referenced as Small Power Producing Facilities, a cash-flow-based corporate model of the electric utility, a thermal plant based generation scheduling algorithm, and a system reliability evaluation. All of these components are integrated into an iterative closed loop solution algorithm to both assess and enhance the net revenue. In this solution algorithm, the spot pricing policy of the utility is the principal control mechanism in the process and the system reliability is the primary procedural constraint. A key issue in reducing the negative financial impact of non-utility generation is the possibility of shutting down utility generation units given sufficient magnitudes of non-utility generation in the system. A case study simulating the financial and system operations of the Georgia Power Company with representative cogeneration capacity and individual plant characteristics is analyzed in order to demonstrate the solution process.

Research Organization:
Georgia Inst. of Tech., Atlanta, GA (USA)
OSTI ID:
6158389
Resource Relation:
Other Information: Thesis (Ph. D.)
Country of Publication:
United States
Language:
English