Transmission Pricing Zones: Simple or Complex?
Zones may simpll& transmission pricing, but they. introduce the d$@ult and contentious issue of zonul boundaries. The FERC has declared that zones must reflect 'accurate congestion boundaries.' When they do not, zone boundaries become unworkable, as the Wepex zonal dejnition demonstrates. A statistical approach shows promise but is not yet adequate for the task.
Steen Stof
This is the second article on the Western Power Exchange (WEPEX) proposal to implement the California Public Utilities
Commission's plan to institute a competitive wholesale power market and retail customer choice in the state. Last month's article explored the need to allow the independent system operator to "clear the market." This required two changes in the original proposal: (1) that the IS0 be allowed to see all potentially useful bids, and (2) that the I!30 be allowed to make use of all bids to achieve a least-cost dispatch.
On Nov. 26,1996, the Federal Energy Regulatory Commission issued an order addressing Wepex which included these details:
Companies have clarified fhat ,.. the IS0 can accept volunta y information @nn all generators and loads in order to relieve transmission congestion and provide ancilliz y services.
We accept the Companies' clarification. In addition, we will require that the IS0 be allowed to use all information it receives in order to develop a least cost schedule (fir energy and ancillay service) in performance of its responsibilities to @ciently manage congestion . . .
Presumably this overturns the
Wepex requ&ment that 'The I!30 . . . will cease making adjustments when congestion is relieved" and will allow the IS0 to dispatch to least cost, thereby clearing the J 24
The Electricity ]ournal