Wholesale Power Workshop
Learning objectives
After this course students will be able to:
- Define terminology used in discussing wholesale power transactions and rate design
- Describe the physical components of wholesale power generation and transmission systems
- Explain the factors that drive cost and that can be used in determining cost causation
- Describe wholesale rates and how they are determined
1. Define terms
A. Firm
B. Non-firm
C. On-peak
D. Off-peak
E. Energy – kWh
F. Capacity – kW
G. Coincident peak
H. Non-coincident peak
I. Demand ratchet / fixed demand
J. Load factor
K. Diversity
L. Reactive power – kVar
M. Power factor
N. Line losses
O. Price variability
i. Seasonal
ii. On-peak
iii. Off-peak
iv. Hourly
P. Risk management
Q. Dispatch
2. Explain the various components of the physical systems needed to generate and deliver wholesale electric power
A. Generation
i. Type
1. Base Load
2. Intermediate
3. Peaking
ii. Fuel Source
1. Coal
2. Natural gas
3. Oil
4. Renewables – Green Power
a. Hydro
b. Wind
c. Solar
d. Biomass
iii. Ancillary services
1. Scheduling and dispatch
2. Voltage control and reactive power
3. Regulation and frequency response
4. Energy imbalance
5. Spinning reserves
6. Supplemental reserves
7. Line losses
8. Backup service
iv. The economics of generation
1. Fixed costs
2. Variable costs
v. Generation issues
1. Purchase power vs. build
2. Reserve levels
B. Transmission
i. Physical components of transmission systems
1. Brief description of physical system
2. Dispatching the transmission system
ii. Purchasing transmission service from others
1. Non-firm
2. Firm
3. Network service
iii. Transmission Issues
1. Constraints
2. Curtailment
3. Siting new lines
3. Cost causation
A. Energy costs
B. Demand costs
i. coincident peak
ii. non-coincident peak
iii. Demand ratchets
C. Customer costs
D. Facilities costs (substation charges)
E. Fuel adjustment clause
F. Power factor adjustment
G. Wholesale rates and how they are determined
