As the industry environment transforms from a completely regulated setting to a broader, deregulated marketplace, new market participants must understand planning and operations of power systems to effectively participate in markets. This industry overview provides a description of utility operations and traditional planning, and then explains asset management, investment analysis, and risk management within the context of a market environment. Written to provide a broad, working knowledge of the industry, Electric Power Planning for Regulated and Deregulated Markets:
Includes descriptions of generation and transmission network equipment Provides an overview of the regulatory framework, system design and systems operations for ensuring reliable delivery of power Presents system planning across different time horizons with the objective of minimizing power production costs Explains the principles and architecture of a market environment coupling operational imperatives with financial transactions Addresses approaches of various participants, including power producers, retailers, and integrated energy companies toward bidding in day ahead markets, managing risks in forward markets, portfolio development and investment analysis Provides numerous examples addressing cost minimization, price forecasting, contract valuation, portfolio risk measurement and others Examines past news events and explains what went wrong at Three Mile Island, the Northeast blackout of 2003, and the California energy crisis
This is an ideal reference for professionals in the public and private power service sectors such as engineers, lawyers, systems specialists, economists, financial analysts, policy analysts, and applied mathematicians.
By:
Arthur Mazer (Southern California Edison)
Imprint: Wiley-IEEE Press
Country of Publication: United States
Dimensions:
Height: 236mm,
Width: 163mm,
Spine: 22mm
Weight: 594g
ISBN: 9780470118825
ISBN 10: 0470118822
Series: IEEE Press
Pages: 336
Publication Date: 27 March 2007
Audience:
Professional and scholarly
,
Undergraduate
Format: Hardback
Publisher's Status: Active
Preface xi Acknowledgments xv Figure Citations xvii About the Author xix 1. Overview 1 1.1 The Power Delivery Chain in a Vertically Integrated Utility 1 1.2 The Power Delivery Chain in a Market Environment 3 2. Energy, Load, and Generation Technologies 7 2.1 Energy, Power, and their Measurements 7 2.2 Load 14 2.3 Generation Technologies 21 3. The Grid 49 3.1 Fundamentals: Load, Generation, and Alternating Current 49 3.2 Grid Equipment 56 3.3 Grid Reliability and Contingency Requirements 64 3.4 Grid Configuration 67 3.5 Grid Operations 72 3.6 Blackout August 14, 2003 76 4. Short-Term Utility Planning 81 4.1 Planning and Execution of Dispatch: Day-Ahead Planning Through Real-Time Delivery 81 4.2 Day-Ahead Demand Forecasting: Load and Ancillary Service Requirements 84 4.3 Least-Cost Dispatch in a Single Control Area: A Simple Model 89 4.4 A Solution Using Profit Maximization 95 4.5 Least-Cost Dispatch in a Single Control Area with Operating Constraints 99 4.6 Least-Cost Dispatch in a Single Node with Spinning Reserve and Regulation 111 4.7 Least-Cost Dispatch in a Network 113 4.8 Real Time 120 5. Long-Term Utility Planning 122 5.1 Project Development 122 5.2 The Planning Process 127 5.3 Long-Term Load Forecasting 129 5.4 A Simplified Look at Generation Capacity Additions 131 5.5 Generation Additions and Retirements Within a Single Control Area 143 5.6 Generation Additions and Retirements with Transmission to a Single Control Area 147 5.7 Generation Additions and Retirements and Transmission Additions Within a Network 148 5.8 Reserve Reuqirements 151 6. Midterm Utility Planning 152 6.1 Informational Requirements 152 6.2 Formulation of the Optimization Problem 156 7. A Market Environment 161 7.1 Principles and Architecture 161 7.2 Short-Term Market Design: Day-Ahead Scheduling Through Real-Time Delivery 164 7.3 Long-Term Market Design: No Clear Solutions 170 7.4 Midterm Market Design 173 8. Asset Management in Short-Term Markets 180 8.1 Retailers 180 8.2 Power Producers 183 8.3 Integrated Energy Companies 189 9. Investment Analysis: Long-Term Planning in a Market Environment 192 9.1 Investment Setting in Utility and Market Environments 192 9.2 Project Analysis for a Merchant Plant 193 9.3 Power Purchase Agreements (Long-Term Contracts) 202 10. Risk Management in the Midterm Markets 211 10.1 Retailer Risk 211 10.2 Power Producer Risk 214 10.3 A Quick Risk Primer in Statistics for Risk Management 215 10.4 Risk Management in Midterm Markets: Retailers 229 10.5 Risk Management in Midterm Markets: Power Producers 252 10.6 Risk Management in Midterm Markets: Integrated Electricity Suppliers 274 11. The California Experience 278 11.1 Market Fundamentals 279 11.2 Short-Term Market Structure: The CALPX, CAISO, and Other Market Participants 281 11.3 Fatboy, Get Shorty, Ricochet, and Death Star 286 11.4 Market Contrast: PJM and California 288 Bibliography 291 Index 294
Arthur Mazer, PhD, MBA, is Manager of Forward Transactions Planning at Southern California Edison, where he oversees the risk assessment of SCE's power, gas, and customer portfolio, as well as valuation and selection of power and gas contracts. He previously held positions at Electrabel, Progress Energy, and Entergy Power Marketing Corp. Additionally, he was visiting assistant professor at Utah State University and a lecturer at Singapore Polytechnic, both in the Department of Mathematics.
Reviews for Electric Power Planning for Regulated and Deregulated Markets
...'an ideal reference for professionals and private service sectors.' Thus it is for power industry professionals. (CHOICE, September 2007) ...a comprehensive book by an insider... (Electrical Apparatus, July 2007)
