Measuring the Benefits and Costs of Regional Electric Grid Integration

摘要: I. INTRODUCTION Electric industry restructuring in its modern form has been underway for over a decade the United States. The major new institutional arrangement under States is formation of Independent System Operator (ISO) or Regional Transmission (RTO). RTO an independent not-for-profit organization (independent sense that it owns no assets and does not take position wholesale power market) manages joint transmission number transmission-owning electric utilities. In many places, RTOs also run centralized regional spot markets energy, ancillary services, offer financial contracts hedging congestion risk.1 Other than move from market based on physical rights to one rights, difference between their predecessors aggregation generation resources economic dispatch. Prior introduction markets, were either dispatched centrally at level individual utility pool. With control areas are cost-optimized jointly.2 It striking that, even after ten years experience, neither nor academia produced definitive study costs benefits grid integration. Broadly speaking, analyses by consultants trumpet consumers billions dollars, while academics have generally come opposite conclusion.3 Part controversy stems fact certain studies claim large integration set factors (or performance metrics) others different factors. This paper attempt provide study, but rather seeks lay out reasonably complete metrics ought be considered any serious analysis operations. this sense, hopes right path debate electricity providing foundation future cost-benefit discussions. Restructuring's failures should blamed opportunistic behavior party group parties, failure regulators, policymakers, designers develop precise policy goals (and verify given design would meet goals). focus limited shift towards through discuss other changes associated with restructuring, such as movement away cost-based rates possibility increased consolidation (for example) repeal Public Utility Holding Company Act. structures had benefits, largely increasing operating efficiency base-load plants Eastern Interconnection (fueled coal nuclear fission). Whether liquidity brought ultimate controversial subject just started get attention past couple years. Section 2 provides some background process coordination markets. 3 conceptual discussion loss utility-level dispatch tool draws parallels theory currency union. 4 discusses how measured evaluated existing literature. effects generator efficiency, retail price seen end-use customers. …