@misc{22918,
  keywords = {Market mechanisms, reliability management, RM12-002},
  author = {Robert J Thomas and Timothy D Mount and Richard Schuler and William Schulze and Ray Zimmerman and Fernando L Alvarado and Bernard Lesieutre and Philip Overholt and Joseph H Eto},
  title = {Efficient and Reliable Reactive Power Supply and Consumption - Insights from an Integrated Program of Engineering and Economics Research},
  abstract = {<p>In 2005, the Federal Energy Regulatory Commission (FERC) began discussing regulatory policy for reactive-power procurement and pricing in competitive electricity markets. This paper summarizes findings from a unique, interdisciplinary program of public-interest research that lays a formal foundation for evaluating aspects of FERC staff recommendations and offers early insights that should be useful in guiding policy implementation, specifically by:</p><ul><li>clarifying the consumers and economic characteristics of reactive power as a basis for creating incentives to appropriately price it,</li><li>defining specific challenges in creating a competitive market for reactive power as well as new tools needed to help ensure such a market functions efficiently, and</li><li>demonstrating the importance of accounting for the physical characteristics of the transmission network in planning for reactive power and avoiding the exercise of market power by suppliers.</li></ul>},
  year = {2008},
  journal = {The Electricity Journal},
  volume = {21},
  pages = {70–81},
  month = {01/2008},
  publisher = {Elsevier},
  doi = {10.1016/j.tej.2007.12.002},
  note = {<p>The attached file is a pre-print version of an article accepted for publication in <em>The Electricity Journal</em>. To see the published version of this report, <a title="Electricity Journal" href="http://www.sciencedirect.com/science/article/pii/S1040619007001558" target="_blank">click here</a>.</p>},
}