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Marginal Capacity Costs of Electricity Distribution and Demand for Distributed Generation

Chi-Keung Woo, Debra Lloyd-Zannetti, Ren Orans, Brian Horii and Grayson Heffner

Year: 1995
Volume: Volume16
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol16-No2-6
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Abstract:
Marginal costs of electricity vary by time and location. Past researchers attributed these variations to factors related to electricity generation, transmission and distribution. Past authors, however, did not fully analyze the large variations in marginal distribution capacity costs (MDCC) by area and time. Thus, the objectives of this paper are as follows: (1) to show that large MDCC variations exist within a utility's service territory; (2) to demonstrate inter-utility variations in MDCC; and (3) to demonstrate the usefulness of these costs in determining demand for distributed generation (DG).



Integrated Local Transmission and Distribution Planning Using Customer Outage Costs

Greg Ball, Debra Lloyd-Zannetti, Brian Horii, Dan Birch, Robert E. Ricks, and Holly Lively

Year: 1997
Volume: Volume 18
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol18-NoSI-7
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Abstract:
Changing regulatory incentives in the electric power industry are forcing utility transmission and distribution (T&D) planners to change their approach to investment planning. To minimize the risk of over-investment, utilities need to perform an analysis of system capacity limitations which goes beyond traditional peak load and temperature planning, and routinely consider a variety of alternate incremental capacity expansion measures. Existing engineering tools are inadequate for determining the potential cost advantage of deferring an expansion, or for evaluating the net benefits of distributed resources (DR). Conversely, integrated resource planning (IRP) tools often underestimate or ignore important DR siting restrictions and operational impacts. This paper describes a process to identify T&D capacity constraints, evaluate conventional and alternative capacity additions and DR applications, and explore the risk of operating beyond limits imposed by current reliability practices. The process uses hourly load-flow information to quantify the total annual energy and customer outage costs. The same information is used to build plans incorporating and dispatching DR where they have the greatest impact on minimizing expansion needs. A detailed case study demonstrates the process by quantifying the economic benefits of deferring an expansion with a do-nothing plan. The study reveals both unforeseen advantages and impracticalities of DR use.



Electricity Market Integration in the Pacific Northwest

Chi-Keung Woo, Debra Lloyd-Zannetti and Ira Horowitz

Year: 1997
Volume: Volume18
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol18-No3-4
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Abstract:
Evidence of market integration and price competition support a policy of price deregulation and open access in the electric power industry. The objective of this paper is to test the hypotheses that wholesale electricity submarkets in the Pacific Northwest region of the WSCC are integrated, and price competition exists within these integrated submarkets. To this end, we apply a bivariate cointegration test, a price-difference test and a causality test to the 1996 on-peak daily electricity prices off our submarkets in the Pacific Northwest of North America: Mid-Columbia and California-Oregon Border (COB) in the Western US, and BC/US Border and Alberta Power Pool in Western Canada. The price-difference test results support the hypothesis that the following pairs of markets are integrated: (a) BC/US Border and Mid-Columbia; (b) BC/US Border and COB; and (c) Mid-Columbia and COB. A comparison between the gross profit from price arbitrage and the posted transmission tariff indicates that price competition prevails in these market pairs, and the causality test results provide supporting evidence that price leadership does not exist in these three market pairs. Finally, a market-share analysis indicates that B. C. Hydro does not have market power in the aggregate market comprising BC/US Border, Mid-Columbia and COB.





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