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The Great Plains Gasification Project: The Problem of Juridical/Administrative Incompatibility

Robert A. Solo

Year: 1987
Volume: Volume 8
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No2-12
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Abstract:
Such is the public memory (and so completely has the problem vanished from the scene) that some will recall only with difficulty the vast and costly program on which President Jimmy Carter staked so much-to reduce the American dependence on imported petroleum through the production of substitute synthetic fuels from coal. The major component of that program was a project to produce a synthetic natural gas from coal. And yet even in 1982 in a special issue of The Energy Journal devoted entirely to natural gas, so absorbed were the authors with the process of decontrol, market distortions in a situation of partial decontrol, and apprehension at the prospect of a possible windfall profit tax that the matter of synthetic fuels had dropped entirely out of sight. There was not a single mention of Project Independence. Nor was there any concern for the fundamental problem of replacing a depletable and rapidly depleting resource.



Simulating the Operation of Markets for Bulk-Power Ancillary Services

Eric Hirst and Brendan Kirby

Year: 1998
Volume: Volume19
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol19-No3-3
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Abstract:
The U.S. Federal Energy Regulatory Commission (FERC) requires electric utilities to offer six ancillary services. Most of the tariffs filed with FERC price these services on the basis of traditional cost-of-service (embedded) costs, Because most of these services are provided by generating units, however, it should be possible to create competitive markets for them. This paper describes, the structure of, and results from, a spreadsheet model that simulates markets for seven services: losses, regulation, spinning reserve, supplemental reserve, load following, energy imbalance, and voltage support. The model also analyzes, system control, although this service will continue to be provided solely by the system operator under cost-based prices. Developing this computer model demonstrated the likely complexity of markets for energy and ancillary services. This complexity arises because these markets are highly interdependent. For example, the cost of regulation (the frequent change in generator outputs to track the minute-to-minute fluctuations in system load) depends strongly on which units, are already being dispatched to provide energy and losses, their variable costs, and their operating levels relative to their maximum and minimum loading points.



Money for Nothing? Why FERC Order 745 Should have Died

Xu Chen and Andrew N. Kleit

Year: 2016
Volume: Volume 37
Number: Number 2
DOI: 10.5547/01956574.37.2.xche
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Abstract:
Customer baseline load (CBL) measurement is designed to represent participants' expected usage in a number of electricity demand response (DR) programs. Our empirical results, however, show that CBLs can be systematically higher than DR participants' estimated load, especially for those experienced in DR activities, likely due to manipulation behaviors. Thus, the integrity of CBL may degrade over time. With an inflated CBL, the impact of DR programs may therefore be highly exaggerated, and consumers can be paid money when they are not actually reducing their demand. In particular, we design a manipulation-indicating variable "seemingly unattractive free-money opportunity" (SUFO) and discover system-wide manipulative behaviors that increase with time and are widely adopted by experienced DR participants. We suggest that policy makers in FERC, RTOs, and states regulatory agencies consider the threat of manipulation when modifying DR market rules following the Supreme Court's recent upholding of FERC Order 745.





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