T&D Grid

The U.S. power market consistently has displayed cyclical characteristics of boom and bust over the last two decades. Today’s market environment has been directly and significantly impacted by the recent economic recession. Decreases in load growth, declining commodity prices, and lack of accessible financing have caused challenges for the industry.

Unlike the majority of performance-based regulation plans, alternative design paradigms require less data, by instead allowing firms to reveal performance potential. In an asymmetric environment, regulators don’t have needed information, but that can be overcome with better models and incentives.

The Northeast energy markets are working hard to establish new levels of regional coordination and cooperation. The region’s concerted effort is essential to resolving some of the industry’s toughest issues since the individual markets evolved. These issues include the elimination, reduction, or bridging of seams issues that prevent the economic transfer of capacity and energy between neighboring wholesale electricity markets, or control areas, as a result of incompatible market rules or designs.

In today’s modern business environment, standards for products and services have become common—and expected—practice. The time is right for creating a common language among the critical software tools needed to deliver a reliable, competitively priced supply of electricity through today’s integrated power grids and wholesale market structures.

During the 1980s and early 1990s, integrated resource planning (IRP) was a required practice for many utilities. Then competitive wholesale markets, merchant generation, and restructuring initiatives led many utilities to abandon IRP.

While wholesale competition generally has been successful, the regulatory process changes it brought were less so. And utilities now are getting back into long-term resource planning studies to provide decision support for their “back to basics” business strategies.

China is seeking to acquire resources and infrastructure from all over the world, from the oil fields of Venezuela to new shipyards for building liquefied natural gas tankers in Shanghai. But the country’s acquisition pattern puts it on a collision course with the United States and the rest of the world.

Miscellaneous distribution operations expenses totaled $878 million in 2004— the largest single element of the distribution operations expenditures. Greater integration of real-time data can bring such costs under control.

Efforts to develop more RTOs in the West came to a near standstill again after talks last year among key players Bonneville Power Administration (BPA), Grid West, and the Transmission Improvements Group collapsed over BPA’s convergence proposal. The end of talks is one more failure in a long line of failures to find consensus on an RTO approach in the West. Grid West is attempting to reorganize following BPA’s withdrawal, but its fate is indeterminate. Key issues are funding for continued development and achieving agreements with BPA and other transmission providers in the region.