Unbundling generation and transmission services for competitive electricity markets

PDF Version Also Available for Download.

Description

Ancillary services are those functions performed by the equipment and people that generate, control, and transmit electricity in support of the basic services of generating capacity, energy supply, and power delivery. The Federal Energy Regulatory Commission (FERC) defined such services as those `necessary to support the transmission of electric power from seller to purchaser given the obligations of control areas and transmitting utilities within those control areas to maintain reliable operations of the interconnected transmission system.` The nationwide cost of ancillary services is about $12 billion a year, roughly 10% of the cost of the energy commodity. More important than ... continued below

Physical Description

62 pages

Creation Information

Hirst, E. & Kirby, B. January 1, 1998.

Context

This report is part of the collection entitled: Office of Scientific & Technical Information Technical Reports and was provided by UNT Libraries Government Documents Department to Digital Library, a digital repository hosted by the UNT Libraries. It has been viewed 15 times . More information about this report can be viewed below.

Who

People and organizations associated with either the creation of this report or its content.

Sponsor

Publisher

Provided By

UNT Libraries Government Documents Department

Serving as both a federal and a state depository library, the UNT Libraries Government Documents Department maintains millions of items in a variety of formats. The department is a member of the FDLP Content Partnerships Program and an Affiliated Archive of the National Archives.

Contact Us

What

Descriptive information to help identify this report. Follow the links below to find similar items on the Digital Library.

Description

Ancillary services are those functions performed by the equipment and people that generate, control, and transmit electricity in support of the basic services of generating capacity, energy supply, and power delivery. The Federal Energy Regulatory Commission (FERC) defined such services as those `necessary to support the transmission of electric power from seller to purchaser given the obligations of control areas and transmitting utilities within those control areas to maintain reliable operations of the interconnected transmission system.` The nationwide cost of ancillary services is about $12 billion a year, roughly 10% of the cost of the energy commodity. More important than the cost, however, is the necessity of these services for bulk-power reliability and for the support of commercial transactions. FERC`s landmark Order 888 included a pro forma tariff with provision for six key ancillary services. The Interconnected Operations Services Working Group identified another six services that it felt were essential to the operation of bulk-power systems. Several groups throughput the United States have created or are forming independent system operators, which will be responsible for reliability and commerce. To date, the electricity industry (including traditional vertically integrated utilities, distribution utilities, power markets and brokers, customers, and state and federal regulators) has paid insufficient attention to these services. Although the industry had made substantial progress in identifying and defining the key services, much remains to be doe to specify methods to measure the production, delivery, and consumption of these services; to identify the costs and cost-allocation factors for these services; and to develop market and operating rules for their provision and pricing. Developing metrics, determining costs, and setting pricing rules are important because most of these ancillary services are produced by the same pieces of equipment that produce the basic electricity commodity. Thus, the production of energy and ancillary services is highly interactive, sometimes complementary and sometimes competing. In contrast to today`s typical time-invariant, embedded-cost prices, competitive prices for ancillary services would vary with system loads and spot prices for energy.

Physical Description

62 pages

Notes

OSTI as DE00611849

Source

  • Other Information: Supercedes report DE98005791; PBD: Jan 1998

Language

Item Type

Identifier

Unique identifying numbers for this report in the Digital Library or other systems.

  • Other: DE98005791
  • Report No.: ORNL/CON--454
  • Grant Number: AC05-96OR22464
  • DOI: 10.2172/611849 | External Link
  • Office of Scientific & Technical Information Report Number: 611849
  • Archival Resource Key: ark:/67531/metadc691978

Collections

This report is part of the following collection of related materials.

Office of Scientific & Technical Information Technical Reports

Reports, articles and other documents harvested from the Office of Scientific and Technical Information.

Office of Scientific and Technical Information (OSTI) is the Department of Energy (DOE) office that collects, preserves, and disseminates DOE-sponsored research and development (R&D) results that are the outcomes of R&D projects or other funded activities at DOE labs and facilities nationwide and grantees at universities and other institutions.

What responsibilities do I have when using this report?

When

Dates and time periods associated with this report.

Creation Date

  • January 1, 1998

Added to The UNT Digital Library

  • Aug. 14, 2015, 8:43 a.m.

Description Last Updated

  • Jan. 21, 2016, 1:29 p.m.

Usage Statistics

When was this report last used?

Yesterday: 0
Past 30 days: 0
Total Uses: 15

Interact With This Report

Here are some suggestions for what to do next.

Start Reading

PDF Version Also Available for Download.

Citations, Rights, Re-Use

Hirst, E. & Kirby, B. Unbundling generation and transmission services for competitive electricity markets, report, January 1, 1998; Tennessee. (digital.library.unt.edu/ark:/67531/metadc691978/: accessed May 20, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.