TY - MGZN
KW - Market mechanisms
KW - Reliability management
KW - RM12-002
AU - Robert J Thomas
AU - Timothy D Mount
AU - Richard Schuler
AU - William Schulze
AU - Ray Zimmerman
AU - Fernando L Alvarado
AU - Bernard Lesieutre
AU - Philip Overholt
AU - Joseph H Eto
AB - <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>
BT - The Electricity Journal
C2 - LBNL-63782
DA - 01/2008
DO - 10.1016/j.tej.2007.12.002
IS - 1
N1 - <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>
N2 - <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>
PB - Elsevier
PY - 2008
EP - 70–81
T2 - The Electricity Journal
TI - Efficient and Reliable Reactive Power Supply and Consumption - Insights from an Integrated Program of Engineering and Economics Research
VL - 21
ER -