Spot Pricing of Electricity

Zusatztext

There is a need for fundamental changes in the ways society views electric energy. Electric energy must be treated as a commodity which can be bought, sold, and traded, taking into account its time-and space-varying values and costs. This book presents a complete framework for the establishment of such an energy marketplace. The framework is based on the use of spot prices. In general terms: o An hourly spot price (in dollars per kilowatt hour) reflects the operating and capital costs of generating, transmitting and distributing electric energy. It varies each hour and from place to place. o The spot price based energy marketplace involves a variety of utility-customer transactions (ranging from hourly varying prices to long-term, multiple-year contracts), all of which are based in a consistent manner on hourly spot prices. These transactions may include customers selling to, as well as buying from, the utility. The basic theory and practical implementation issues associated with a spot price based energy marketplace have been developed and discussed through a number of different reports, theses, and papers. Each addresses only a part of the total picture, and often with a somewhat different notation and terminology (which has evolved in parallel with our growing experience). This book was xvii xviii Preface written to serve as a single, integrated sourcebook on the theory and imple­ mentation of a spot price based energy marketplace.

Autorenportrait

Inhaltsangabe1 Overview.- 1.1 Goal of Book.- 1.2 Three Steps to an Energy Marketplace.- 1.3 How Will Customers Respond?.- 1.4 Energy Marketplace Operation: A Developed Country.- 1.5 Energy Marketplace Operation: A Developing Country.- 1.6 Discussion of Chapter 1.- Supplement to Chapter 1: Summary of Issues.- Historical Notes and References: Chapter 1.- Notes.- I: The Energy Marketplace.- Preface to Part I: The Energy Marketplace.- 2 Behavior of Hourly Spot Prices.- 2.1 Definition of Hourly Spot Price.- 2.2 Components of Hourly Spot Prices.- 2.3 Operating Cost Components.- 2.4 Quality of Supply Components.- 2.5 Aggregated Network.- 2.6 Revenue Reconciliation Components.- 2.7 Buy-Back Rates.- 2.8 Expected Price Trajectories.- 2.9 Price Duration Curves.- 2.10 Customer Response.- 2.11 Discusion of Chapter 2.- Historical Notes and References: Chapter 2.- Notes.- 3 Energy Marketplace Transactions.- 3.1 Criteria for Choice of Transactions.- 3.2 Customer Classes.- 3.3 Price-Only Transactions.- 3.4 Price-Quantity Transactions.- 3.5 Long-Term Contracts.- 3.6 Optional and Custom-Tailored Transactions.- 3.7 Why No Demand Charge?.- 3.8 Relationship to Present-Day Transactions.- 3.9 Customer-Owned Generation: Avoided Costs.- 3.10 Special Customer Treatment.- 3.11 Wheeling Rates.- 3.12 Discussion of Chapter 3.- Historical Notes and References: Chapter 3.- Notes.- 4 Implementation.- 4.1 Energy Marketplace: Operation.- 4.2 Energy Marketplace: Planning.- 4.3 Customer: Operation.- 4.4 Customer: Planning.- 4.5 Calculation of Hourly Spot Prices.- 4.6 Utility: Operation.- 4.7 Utility: Planning.- 4.8 Regulatory Commission: Operation and Planning.- 4.9 Discussion of Chapter 4.- Historical Notes and References: Chapter 4.- Notes.- 5 A Possible Future: Deregulation.- 5.1 A Deregulated Energy Marketplace.- 5.2 Short-Term Operation and Control.- 5.3 Long-Term Operation and Planning.- 5.4 A Scenario.- 5.5 Discussion of Chapter 5.- Historical Notes and References: Chapter 5.- Notes.- II: Theory of Hourly Spot Prices.- 6 Generation Only.- 6.1 Generation Fuel and Variable Maintenace: ?(t).- 6.2 Generation Quality of Supply, ?QS(t): Cost Function Approach.- 6.3 Generation Quality of Supply, ?QS(t): Market Clearing Approach.- 6.4 Generation Self-Dispatch.- 6.5 Multiple Time Periods.- 6.6 Discussion of Chapter 6.- Historical Notes and References: Chapter 6.- Notes.- 7 Generation and Network.- 7.1 Problem Formulation: Real Power Only.- 7.2 General Result.- 7.3 Network Loss: ?L,k(t).- 7.4 Network Maintenance: ?M,k(t).- 7.5 Network Quality of Supply: ?QS,k(t).- 7.6 Two-Bus Example.- 7.7 Price Difference Across a Line.- 7.8 Customer-Owned Generation: Self-Dispatch.- 7.9 Aggregated Networks.- 7.10 Reactive Energy and Voltage Magnitudes.- 7.11 Discussion of Chapter 7.- Historical Notes and References: Chapter 7.- Notes.- 8 Revenue Reconciliation.- 8.1 Modify Spot Prices: Aggregate Reconciliation.- 8.2 Buy-Back Rate.- 8.3 Surcharge-Refund.- 8.4 Revolving Fund.- 8.5 Modify Spot Prices: Decomposed Reconciliation.- 8.6 Fixed Charges.- 8.7 Nonlinear Pricing.- 8.8 Revenue Neutrality.- 8.9 Discussion of Chapter 8.- Historical Notes and References: Chapter 8.- Notes.- 9 Spot Price Based Rates.- 9.1 Predetermined Price-Only Transactions.- 9.2 Price-Quantity Transactions.- 9.3 Long-Term Contracts.- 9.4 Special Customer Contracts.- 9.5 Wheeling Rates.- 9.6 Discussion of Chapter 9.- Historical Notes and References: Chapter 9.- Notes.- 10 Optimal Investment Conditions.- 10.1 Overall Problem Formulation.- 10.2 Generator Investment Conditions.- 10.3 Customer Investment Conditions.- 10.4 Transmission Investment Conditions.- 10.5 Revenue Reconciliation for Optimum Systems.- 10.6 Long-Run Versus Short-Run Marginal Cost Pricing.- 10.7 Discussion of Chapter 10.- Historical Notes and References: Chapter 10.- Notes.- References.- Annotated Bibliography.- Appendices.- A Power System Analysis and Control.- A.1 Network Flows.- A.2 Local Controllers.- A.3 Mathematical Models for System Dynamics.- A.4 Powe

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