- FERC Comments
- RM09-13--Comments opposing NERC
In modifying its Time Error Correction standard, NERC seeks to reduce the connectivity between its reliability function and the mercantile function managed by NAESB. I argue that increasing this connectivity between the reliability and mercantile functions can improve reliability metrics as has been accomplished in India, which reduced the accumulation of Time Error by pricing (a mercantile function) unscheduled interchange using frequency error (a reliability measure) as the independent variable in the pricing function.
- AD05-1 Reactive Power Investigation
Comments on FERC Investigation into Efficient and Reliable Power Supply and Consumption
- AD10-12--Real Time Physical Markets Between Control Areas
The industry needs real time markets between and among control areas, not just within control areas. Control areas such as ISOs now burden their neighbors with loop flow and inadvertent interchange. Those burdens would reduce if the offending party had to pay cash for imposing those burdens.
- RM05-25 Transmission Services--2nd Reply
A small change in the BPA penalty program for imbalances can create a pricing plan that rewards imbalances that help the system.
- RM11-24--Accounting for Storage
“Buy Low, Sell High: Creating A Competitive Intermittency Market In Which Fast Response Storage Systems 1. Can Thrive, But 2. Are Not The Only Participants, Comments Of Mark B. Lively, Utility Economic Engineers,” FERC Docket RM11-24-000, Third-Party Provision of Ancillary Services; Accounting and Financial Reporting for New Electric Storage Technologies, 2011 August 19
- RM04-7:Reactive Power
A formulary market should be used for reactive power instead of cost based rate schedules
- AD09-4 Renewable Resources
On the need to pay for virtual storage and transmission instead of forcing renewable resources to provide their own
- AD09-10, Demand Response, “TRUST BUT VERIFY AND THEN CASH-OUT”
The nuclear disarmament plan at the end of the cold war resulted in the mantra, “Trust but Verify.” To get Demand Response to work better, the industry needs to develop a related mantra, such as Trust, Verify, and Cash-Out Imbalances.
- NRRI Magazines
- IEEE Presentations & Papers
- Short Run Marginal Cost Pricing For Fast Responses on the Smart Grid, Innovative Smart Grid Technologies, 2010 January 19-21
The growth of the Smart Grid will increase the interdependence of the electric grid, requiring ways for utilities to pay each other and their customers for automated responses to happenings on the grid.
- Short Run Marginal Cost Pricing for Fast Responses on the Smart Grid
Presentation slides associated with this paper
- “The WOLF in Pricing: How the Concept of Plug, Play, and Pay Would Work for Microgrids”, IEEE Power & Energy Magazine, January/February 2009--Galley Proof
The PDF version of the final document is over 10 MG.
- Letter to Editor IEEE PES Magazine--2009 MarApr
Microgrid development is already providing much of the infrastructure for real time pricing of reactive power on an RKVAH basis, with the reactive power price being a function of the local active power price and voltage condtions.
- IEEE Reliability & Maintainability Symposium-1998
Real-Time Reliability-Based Electricity Pricing
- 2008 IEEE PES Transmission and Distribution Conference and Exposition, Chicago, Illinois, 2008 April 2
“Paying DG To Provide Power When Power Is Needed,” Special Interests Session III, Rethinking T&D Architecture for DER: HOW?, Powering Toward the Future
- Wind Farms
- When Wind Hurts The Carbon Mitigation Program
Wind power has a varying effect on the displacement of CO2 production. On 2011 April 4, wind power in Ireland reduced CO2 production at a rate of about 250 KG/MWH between 4:00 AM and 6:30 AM and at a rate of between 700 KG/MWH and 800 KG/MWH during the daylight hours. On a weighted average basis, wind that day displaced 599 KG/MWH.
- Renewable Electric Power—Too Much of a Good Thing: Looking At ERCOT
The growth in wind power has sometimes created surpluses on the electric system. Though the surplus is due to the growth of wind, all must share the effect, with the price for electricity dropping precipitously. In Texas the price has dropped below zero for many time periods. More needs to be done. August 2009 issue of Dialogue, by the US Association for Energy Economics
- Pricing Intermittency--Filed in RM05-25
This paper was based on a NERC finding by its Joint Inadvertent Interchange Task Force that frequency drives the value of reliability in regard to unscheduled flows of electricity.
- Pricing Unexpected Ramping
Second by second data from Kodiak, Alaska, shows the variability of wind. A punitive measure for pricing generator variability is presented which can lead to a non-punitive measure when system frequency information is used.
- "WOLF Pricing for ACE Sharing"
"Creating an Intra-Hour Market on Bonneville Power Authority As Part of the Wind Integration Rate Case"
- Intrahour Pricing
Paper on how BPA could price power on an intra-hour basis.
- Conference Papers
- Public Utilities Fortnightly
- Tie Riding Freeloaders-1989
"The True Impediment to Transmission Access" is that there is not a pricing mechanism in place for inadvertent interchange, loop flows, reactive power and other forms of unscheduled flows of electricity.
- Electricity Is Too Chunky-1998
The Midwest power prices during Summer 1998 were neither too high nor too low. They were too imprecise
- Saving California With Distributed Generation-2001
A Crash Program To Use Small, Standby Diesel Generators To Keep The Lights On--The California Power Shortage of 2000/2001 Could Have Been Avoided With Appropriate Pricing to Incent the 30,000 MW of Small Generators to Operate in Parallel With the Grid
- Storage
- Buy Low, Sell High
Intra-minute pricing plans will allow fast response storage systems to buy low and sell high just like participants in other commodity markets, indeed just as pumped hydro units now operate in advanced markets operated by ISOs.
- Other Publications
- “Dynamic Pricing: Using Smart Meters to Solve Electric Vehicles Related Distribution Overloads,” Metering International, Issue 3, 2010.
The addition of Hybrid Electric Vehicles to the Smart Grid encourages Smart Pricing, including dynamic pricing of the use of the local wires and transformers serving the end user.
- Lake Erie Doughnut--Loop Flows
Control Areas should have a way to pay for the unscheduled flows they have with neighboring control areas, such that each are compensated for loop flow, inadvertent interchange, and reactive power. The Lake Erie doughnut creates major loop flow concerns in the Eastern United States and Canada.
- Microgrids and financial affairs - creating a value-based real-time price for electricity, Cogneration & On-Site Power, 2007 November
For microgrids to be financially viable, there must be a way for participants to pay each other as peers and for the microgrid to interact with any larger grid as a peer. The payment mechanism also needs to provide incentives for buyers and sellers to do the right thing.
- Comments--Overseas Venues
- Pricing Mechanism To Facilitate Entry Into The FCAS Market
The Office of the Tasmanian Economic Regulator (OTTER) has been investigating FCAS (Frequency Control Ancillary Service) and the market power that may be exerted by Hydro Tasmania, the largest provider of FCAS. These 2010 July 9 comments filed with OTTER describe how a formulary market for unscheduled flows of electricity can allow more parties to participate in FCAS, effectively reducing the barriers to entry for smaller participants.
- Comments on UI Pricing
Comments of Mark B. Lively, Utility Economic Engineer, On Explanatory Memorandum For Revision in Unscheduled Interchange Mechanism Produced by ABPS Infrastructure Advisory Private Limited
- Comments on Reactive Power Market
Comments of Mark Lively to the U.K. Office of Gas and Electricity Markets on the Feasibility of Creating a Market for Reactive Power
- DRAFTS
- “Valuing Demand Response For Meeting Intermittencies,” submitted for IEEE Power & Energy Society General Meeting, Minneapolis, MN, 2010 July 25-29
Utilities must match supply and demand on an instantaneous basis. Generally utilities do so by controlling supply. Sometimes utilities find controlling demand to be a better alternative.
When the duration of interruption is less than the standard transaction periods, such as a clock hour, WOLF provides a short interval pricing mechanism that creates a formulary auction for unscheduled flows of electricity.
- Forcing Reserves to Compete With a Physical Market--Draft of 2002 PUF article
Reliability engineers have structured reserve programs to be noncompetitive. As structured, reserve programs are taxing mechanisms, providing a “Get out of jail free card.” Reserve programs need to be insurance programs with a physical market metric. As an insurance program, reserves would be forced to compete with the physical market. The physical market must include a cash out of delivery imbalances relative to scheduled deliveries. Such competition would reduce the market power that has been associated with existing reserve programs, such as revealed in the Enron “smoking gun” memos.
- WVU seminar abstract--September 2010
The electric system is facing a growth in intermittencies. We already have arc welders and arc furnaces as well as some wind and solar generation. Meeting the intermittent nature of these devices is expensive and the expense is going to increase. Jerking around generators causes generators to wear out sooner and reduces their efficiencies. Some studies even claim that the increased emissions associated with jerking fossil generators around are greater than the emission reductions claimed by intermittent wind resources. One reaction has been the suggestion that intermittent resources must be physically paired with storage systems. This seminar will discuss physical and financial approaches for addressing intermittencies, whether of loads or of generation.
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