Surviving and Thriving in the RTO Revolution

Deck: 
How to design tariffs to improve reliability and attract merchant generation.
Fortnightly Magazine - February 1 2001
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Recharge the Economy with Renewable Energy Tax Credits

1 A representation of a generic interconnection, with thermal, hydro, and nuclear generation sharing a grid with a winter peaking load.

2 , 93 FERC 61,294, Dec. 15, 2000.

3 For a survey of methods, see J.W. Marangon Lima "Allocation of Transmission Fixed Charges: An Overview,", Vol. 11, No. 3, 1996.

4 Regulation service provides capacity under the grid operator's automatic generation control (AGC), which can respond to incremental or decremental signals in a matter of seconds. Procurement of incremental capacity (Regulation Up) may be separated from the procurement of decremental capacity (Regulation Down), as it is now in California. Payments to generators for the energy delivered by Regulation Up, or by generators for the energy not delivered by Regulation Down, are specified as part of the specific market design.

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