Interconnected operations services in a vertically integrated utility
- ComEd, Lombard, IL (United States)
The North American electric industry has historically been composed of regulated Vertically Integrated Utilities (VIU). Vertical integration means that the same company owns generation, transmission, and distribution facilities. Regulated utilities were ensured cost recovery for all justifiable expenses. The entire industry is in the process of deregulation. The industry-wide trend is to competitive generation, while transmission and distribution remain regulated. Many variations, in both timing and structure, exist in states that have enacted deregulation and retail choice legislation. Some have combined retail choice with an ISO and power exchange; others have opted for retail choice without either. In the past, Interconnected Operations Services (IOS) were obtained by informal means within the same company. Generation is now being actively bought and sold as companies align their strategic direction with different sectors of the emerging electric industry. In the future, these IOS will have to be obtained by formal arrangements. The formal arrangements will need to encompass parameters including service definitions, compensation, performance measurement, and performance incentives. These formal arrangements are presently taking different forms in the industry depending on the stage of deregulation in each area, and on the particular agreements made by each Control Area. This paper describes how VIUs obtained and dispatched the IOS needed for reliability, and what challenges will be faced with respect to these services.
- Research Organization:
- Illinois Inst. of Tech., Chicago, IL (United States)
- OSTI ID:
- 696694
- Report Number(s):
- CONF-990410-PROC.-Vol.1; TRN: IM9946%%80
- Resource Relation:
- Conference: 61. American power conference annual meeting, Chicago, IL (United States), 6-8 Apr 1999; Other Information: PBD: 1999; Related Information: Is Part Of Proceedings of the American power conference: Volume 61-1; McBride, A.E. [ed.]; PB: 540 p.
- Country of Publication:
- United States
- Language:
- English
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