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Wholesale Power Workshop

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


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