Market Based Concepts and Criteria for Transmission Planning: Addressing Reliability and Economic Needs

March 16-18, 2005 - Hilton Boston Back Bay - Boston, MA
Click Here To Download A Complete Conference Brochure

Click Here For A Complete Listing Of Upcoming Conferences

COURSE SYNOPSIS - Deregulation, Unbundling, creation of super RTOs and Open Market have changed the process of Transmission Planning and Operation. The new competitive market has a major influence on the utilization of existing transmission lines and justification for transmission expansion. Whereas, the competitive market structure is shaped by regulatory attitudes and pricing regimes, the bulk power markets are fundamentally defined by physical transmission limitations. RTO setup offers transmission owners and operators a tremendous opportunity to optimize the value of transmission services, create incentives for relieving transmission congestion and improve reliability. Transmission planners and operators need to have a clear understanding of how to incorporate market impacts in the overall planning models and decision-making. The key to successful RTO and competitive market operations is proper understanding of the planning, engineering, operating, pricing, and regulatory issues related to transmission congestion, probabilistic nature of transmission transfer capability, impact of technology on competitive electricity transactions, system operating structures, ancillary services, federal and state regulations, etc. Examples of planning criteria, scenario analyses, transfer limit calculation procedures, transmission congestion and options for relieving such congestion, and market testing for independent transmission projects are covered in this course.

Course Outline:

Introduction

  • Course objective and discussion of participant's interests

  • Transmission Planning and Operational Control in the wake of blackouts and deregulation

  • Market driven solutions for transmission expansion

  • Issues on transmission market power and barriers to market entry

  • Regulatory decision process - determination of cost and benefitfit, allocation, and public policy objectives

  • Accounting potential savings from transmission congestion reduction

Transmission Grid Reliability & Security

  • Deterministic and probabilistic Criteria

  • Resource adequacy assessment with consideration of deliverability

  • Contingency enumeration and Monte Carlo analysis

  • Voltage collapse, reactive power reserves and response, and stability evaluations

  • Transfer capability determination, FCITC, FCTTC, ATC, CBM, and TRM

Transmission Grid Reliability & Security Analysis, cont'd.

  • Value of Energy Not Served (ENSS) and Loss of Load Expectation (LOLE)

  • Value based planning concept and cost-benefit analysis

  • Uncertainties and scenario analysis

  • Reliability upgrades and congestion upgrades

Flow gates, LMP, and Transmission Congestion

  • Economic issues, short run, and long run marginal cost

  • Market clearing price (LMP) forecast and congestion cost allocations

  • Market performance analysis - transmission, generation, demand response, renewable integration, fuel diversity, environmental implications, etc.

FGR, FTR, TLR and TCC; Transmission Pricing & Cost Allocation

  • Financial mitigation instrument - value of FTR or TCC

  • Cost and benefit analysis, and cost allocations based on market simulations

  • Allocation of transmission services, value of ancillary services, and pricing methodologies

Transmission Impacts on New Generation Siting & Application of New Technology

  • Cost allocation rules for IPP interconnection and related system upgrade cost

  • Performance based rate-making

  • Incentive and capital expenditure test on new transmission project(s) in the marketplace

  • New technology applications

  • Wrap-Up and Q & A

Course Instructors:

Mr. Henry Chao, VP of Transmission, ABB Consulting

Henry Chao is an electrical and operations research engineer with 20 years of experience in all aspects of electric utility planning and operations. Dr. Chao obtained his Ph.D. degree from Georgia Institute of Technology, Atlanta. As Vice President of Transmission at ABB Consulting, his main responsibility is to direct development and consulting using advanced models and technologies. These models and technologies are designed to analyze bulk power markets, relieve transmission congestion, and foster improved understanding of the competitive forces underlying the changes in the electric power sector. His areas of activities include generation and transmission asset valuation and optimal utilization, transmission reliability assessment, commercial project development, and competitive power marketing and risk management. He is frequently invited to speak about asset value enhancement and technology applications at industry and professional organizations. Prior to joining ABB, he also developed and worked on two industry standard reliability assessment packages for utilities. His customer basis includes utilities, developers, financial institutions, and industrial clients.

Mr. Prabu Prabhakara, Executive Consultant, ABB Electric Systems Consulting

Prabu Prabhakara is an Executive Consultant with ABB Electric Systems Consulting, located in Albany, NY. Dr. Prabhakara obtained his Ph.D. degree from Purdue University, Indiana. He has over 30 years of wide ranging experience in Electric Power System Analysis, Planning, Reliability, Security, System Operation, Interconnection, Power Pooling, Economic Feasibility and Conceptual Engineering Studies. This includes 15 years at Gilbert/Commonwealth in Michigan and 12 years at Power Technologies Inc. NY. Consulting, training, teaching assignments and project work have taken him to electric utilities in all regions of U.S.A. and about 15 other countries. He has published over 30 technical papers and articles in PES-IEEE Transactions and other journals and co-authored a book - Industrial and Commercial Power Systems Hand Book, published by McGraw-Hill, 1995. He is a Senior Member of IEEE and also a Registered Professional Engineer in the State of Michigan.

Click Here To Download A Complete Conference Brochure
Click Here For A Complete Listing Of Upcoming Conferences