Understanding Electric Power Systems: An Overview of the Technology, the Marketplace, and Government Regulations, 2nd Edition

Preface to the Second Edition xv

Acknowledgments xix

Chapter 1 Benefits of Electric Power and a History of the Electric Power Industry 1

1.1 Societal Benefits of Electricity 1

1.2 Origin of the Industry 2

1.3 The Development of the National Electric Power Grid 5

1.4 “The Golden Age” 8

Blackouts and the Reliability Crisis 9

The Environmental Crises—The Shift to Low-Sulfur Oil 10

The Fuel Crisis—The Shift from Oil 10

The Financial Crisis 11

The Legislative and Regulatory Crisis 12

1.5 Global Warming Crisis and Concerns about Carbon Emissions 13

1.6 Restructuring, Competition, and the Industry 13

Ownership Structure

Chapter 2 The Electric Power System 15

2.1 The Customers 16

2.2 Sources of the Electric Energy—Generation 17

2.3 The Delivery System 20

Interconnections 24

The Grid 24

Chapter 3 Basic Electric Power Concepts 27

3.1 Electric Energy 28

3.2 Concepts Relating to the Flow of Electricity 30

Direct Current (DC) 31

Alternating Current (AC) 31

Three Phases 33

Synchronism 34

3.3 Characteristics of AC Systems 34

Resistance 34

Induction and Inductive Reactance 35

Capacitance and Capacitive Reactance 36

Impedance 38

3.4 Ohm’s Law for Alternating Current 38

3.5 Power in Alternating Current Circuits 39

Real Power 40

Reactive Power 40

Transformers 42

3.6 Power Flow 43

Division of Power Flow 43

Voltage Drop and Reactive Power Flow 44

3.7 Stability 44

Automatic Generation Controls (AGC) 46

Results of Instability 47

Chapter 4 Electric Energy Consumption 49

4.1 End Uses for Electricity 49

4.2 Customer Classes 50

4.3 Rate Classes 51

4.4 Demand and Energy 51

Energy 52

Effects of Load Diversity 53

4.5 System Load 55

Load Management 57

4.6 Reactive Load 59

4.7 Losses and Unaccounted-For Energy in the Delivery System 59

4.8 Forecasts 61

Chapter 5 Electric Power Generation and Concerns About Greenhouse Gases 65

5.1 Generation’s Role 65

5.2 Types of Generation 66

5.3 Thermal Conversion: Using Fuel as the Energy Resource 69

Steam Cycle—Steam Turbines 69

Combustion (Gas) Turbines 70

Combined Cycle 71

Nuclear 72

Reciprocating Engines 73

Microturbines 74

Combined Heat and Power (CHP) or Cogeneration 74

5.4 Thermal Conversion: Nonfuel Heat Sources 74

Geothermal 74

Solar Thermal Generation 75

5.5 Mechanical Energy Conversion 75

Hydroturbines and Hydropumped Storage 75

Wind Turbines 77

Distributed Generation and Other Sources 78

5.6 Renewable Technologies and Greenhouse Gas Emissions 79

Supply-Side Options to Reduce Greenhouse Gas Emissions 79

Financial Options to Reduce Carbon Emissions 83

5.7 Characteristics of Generating Plants 84

Size 85

Efficiency 87

Availability 88

Schedulable and Unschedulable Units 90

5.8 Capital Cost of Generation 90

5.9 Generator Life Extension 91

5.10 The Technology of Generation 91

Synchronous Generators 91

Variable Frequency and Direct Current Generation 92

5.11 System Needs and Evaluation of Intermittent Resources 93

Chapter 6 The Technology of the Electric Transmission System 97

6.1 Components 97

6.2 HVAC 98

Overhead Lines 98

Overhead Line Capability—Ratings 99

Transmission Cable 101

Cable Capacity 101

Submarine Cables 102

Superconducting Cables 102

6.3 Substations 102

Substation Equipment 103

Substation Circuit Breaker Arrangements 108

Transmission System Aging 108

6.4 HVDC 108

6.5 Advantages of AC over DC Operation 110

Advantages of HVDC 111

Disadvantages of HVDC 112

6.5 Knowledge Required of Transmission Systems 113

Chapter 7 Distribution 115

7.1 Function of Distribution 115

7.2 Primary Distribution Feeders 116

Radial Systems 116

Loop Systems 117

Primary Network Systems 117

Secondary Systems 117

7.3 Distribution Capacity 118

7.4 Losses 119

7.5 Distribution Facility Ratings 119

7.6 Metering 120

7.7 Control of Distribution Voltages 120

Distribution Transformers 121

Voltage Regulators 122

Capacitors 123

7.8 Distribution System Reliability 123

7.10 Quality of Service 124

7.11 Design of Distribution Systems 125

7.12 Distributed Generation 125

7.13 Operation of Distribution Systems 126

7.14 Smart Grids and Microgrids 127

Chapter 8 Energy Storage and Other New Technologies 129

8.1 Energy Storage 131

Benefits of Energy Storage to Generation 131

Benefits of Energy Storage to Transmission and Distribution 132

8.2 Energy Storage Concepts and Technologies 133

Mechanical Systems 133

Thermal Energy Storage 136

Chemical Energy Storage 138

Batteries 138

Hydrogen Energy Storage Systems 139

Electrical Storage 140

Superconducting Magnetic Energy Storage 141

Power Conversion Equipment 141

The Future for Energy Storage 142

8.3 Smart Grid 142

Microgrids 146

8.4 New Nuclear Plant Designs 146

8.5 Carbon Sequestration and Clean Coal Technologies 150

8.6 Superconductors 153

Chapter 9 Reliability 155

9.1 Causes of Outages 155

9.2 Costs of Power Outages 157

9.3 Ways to Measure Reliability 158

9.4 Planning and Operating a Reliable and Adequate 159

Power System

Generation 164

Transmission 165

Distribution 166

9.5 Summary 166

Chapter 10 The Physical Network: The North American Electric Reliability Corporation (NERC) and Its Standards 167

10.1 NERC as Electric Reliability Organization 169

10.2 NERC Standards 171

Functional Model 171

10.3 Development of Standards 176

Reliability Principles 177

Market Interface Principles 177

Compliance with NERC Standards 179

Other NERC Responsibilities 179

The Future 180

Chapter 11 The Physical Network: Operation of the Electric Bulk Power 181

11.1 Balancing Authorities 181

Area Control 182

Operating Reserves 184

11.2 Reliability Coordinators 184

11.3 Transmission Operators 186

Power Transfer Limits 186

Determination of Total Transfer Capability 187

Parallel Path Flow and Loop Flow 188

Reduction of Power Transfers—Congestion Management 189

Ancillary Services 189

11.4 Voltage and Reactive Control 191

11.5 Emergencies 192

Operating Emergencies 193

11.6 Information Exchange 194

Chapter 12 The Physical Network: Planning of the Electric Bulk Power System 197

12.1 Planning Standards 198

12.2 Generation Planning 198

12.3 Transmission Planning 200

Transmission System Planning Studies 203

12.4 Least Cost Planning 205

12.5 The New Planning Environment 205

Recent Transmission Projects 211

Chapter 13 The Regulatory Network: Legislation 213

13.1 Pricing and Regulation 213

13.2 Federal Legislation 214

13.3 Federal Utility Holding Company Act (PUHCA) 214

13.4 Federal Power Act 216

13.5 Other 1930 Federal Laws 219

13.6 Department of Energy Organization Act 219

13.7 Public Utility Regulatory Policies Act (PURPA) 220

13.8 Energy Policy Act of 1992 (EPAct02) 222

13.9 The Energy Policy Act of 2005 (EPAct05) 224

13.10 The Energy Independence and Security Act of 2007 227

13.11 Environmental Laws 227

13.12 2009 American Recovery and Reinvestment Act 230

Chapter 14 The Regulatory Network: The Regulators 231

14.1 The Regulators 231

Federal Energy Regulatory Commission (FERC) 231

Environmental Protection Agency (EPA) 233

Department of Energy (DOE) 234

Nuclear Regulatory Commission (NRC) 236

Recent Federal Regulations 237

FERC Actions after EPAct92 237

FERC Actions Implementing EPAct05 242

Market Manipulation 242

Electricity Reliability and Infrastructure 242

Expansion and Modernization of the Nation’s Electricity Grid 245

Siting Major New Transmission Facilities 245

PURPA Reforms 246

Repeal of PUHCA—Mergers and Acquisitions 246

Market-Based Rates 247

Recent EPA Actions 248

State Regulatory Authority 249

State Utility Restructuring 250

Overall Regulatory Problems 251

Chapter 15 The Information, Communication, and Control Network and Security 253

15.1 Smart Grid 253

15.2 Financial and Business Operations 254

15.3 System Operations 255

15.4 Distribution Operations 255

15.5 Cyber Security 256

15.6 Nuclear Plant Security 259

Chapter 16 The Fuel and Energy Network 261

16.1 Resource Procurement 264

Fuel Measurements 265

16.2 Fuel Transportation 265

16.3 Fuel Diversity 266

16.4 Fossil Fuels Used 267

16.5 Renewable Energy 269

16.6 Fuel Purchasing 271

16.7 Emission Rights 271

Chapter 17 The Business Network: Market Participants 273

17.1 Investment and Cost Recovery 273

17.2 The Changing Industry Structure 274

Functional Unbundling 274

Additional Utility Responses 275

ISO/RTO Formation 275

Holding Company Formation 275

Power Plant Divestitures 277

17.3 New Structures 279

Power Producers 279

Independent Transmission Companies and Operators 279

Impact of Restructuring on the Transmission System 280

Distributors 280

Power Marketers 281

17.4 New Corporate Ownership 281

Utility Mergers and Acquisitions 282

Acquisitions by Foreign Companies 282

Financial Institutions 283

Chapter 18 The Money Network: Wholesale Markets 285

18.1 The Energy Markets 286

Standard Market Design (SMD) 288

Locational Marginal Pricing (LMP) 289

18.2 Transmission 291

Transmission Rights 291

Physical Transmission Rights (PTRs) 292

Financial Transmission Rights (FTRs) 293

Wheeling and Customer Choice 294

Contracts and Agreements 294

Average System versus Incremental Costs 295

18.3 Customer Late Issues 294

Construction Work in Progress (CWIP) 295

Setting of Rates 296

Rate Freezes 296

Allocation of Costs and Economic Benefits 296

Average Costs versus Incremental Costs 297

18.4 Market versus Operational Control 298

18.5 Market Power Issues 298

Price Caps 299

18.6 The Future 299

Chapter 19 The Professional and Industry Organizations 301

19.1 The Professional Organizations 301

The Institute of Electrical and Electronics Engineers (IEEE) 301

The American Society of Civil Engineers (ASCE) 303

American Society of Mechanical Engineers 304

(ASME) and the American Institute of Chemical Engineers (AIChE) CIGRE 304

19.2 Industry Associations 304

NEMA 304

The Association of Edison Illuminating 305

Companies (AEIC)

The American Public Power Association (APPA) 305

The Edison Electric Institute (EEI) 306

The Electricity Consumer Resource Council (ELCON) 306

The National Rural Electric Cooperative Association (NRECA) 307

Electric Power Supply Association (EPSA) 307

The Nuclear Energy Institute (NEI) 308

19.3 Public Interest Groups 308

The National Association of Regulatory Utility 308

Commissioners (NARUC)

Environmental Defense Fund (EDF) 308

Public Citizen 309

Public Interest Law Project 309

19.4 Research Organizations 309

The Electric Power Research Institute (EPRI) 310

Other Research 310

The National Regulatory Research Institute (NRRI) 311

The Power Systems Engineering Research Center (PSERC) 311

Index 313