30 IEEE Transactions on Power Systems, Vol. 11, No. 1. February 1996

BIBLIOGRAPHY ON TRANSMISSION ACCESS ISSUES by the Bibliography Subcommittee of the

BEE Task Force on Transmission Access and Nonutility Generation

Craig B. Lankford Memher

Oklahoma Gas Bt Electric CO Oklahoma City, OK 73101

James D. McCalley Member

Iowa State University Ames,Iowa 50001

ABSTRACT

This paper presents a bibliography on issues related to transmission access in electric power systems. There are 233 citations referenced in this bibliography.

The IEEE Task Force on Transmission Access and Nonutility Generation was formed as a result of recommendations from the 1990 Triennial Power System Engineering Committee, which identified a need to communicate issues related to transmission access to engineering and regulatory groups. The task of this Subcommittee was to assemble a useful bibliography on issues relating to transmission access.

The following bibliography presents a collection of selected literature on issues related to transmission access. It does not contain all of the material available on this subject or the categories contained herein. Some readers may feel that citations within this bibliography should be strictly limited to transmission system issues and not include energy pricing or reliability issues. However, it was the decision of this Subcommittee that selected entries relating to reliability and energy pricing, most relevant to transmission access, should be included. This decision was made because certain issues relating to reliability, transmission and energy pricing are perceived by the industry to be critical in the discussion of transmission access.

The bibliography has been divided into the following sections or sub-sections: 2.0 Operational (Engineering) Issues, 3.0 Planning, 4.0 Reliability, 5.1 Economics: Costing, 5.2(a) Economics: Location-Differentiated Pricing, 5.2(b) Economics: Time-Differentiated Pricing, 5.3 Economics:

95 WM 120-6 PwR,S A paper recommended and approved by the IEEE Power System Engineering Committee of the IEEE Power Engineering Society f o r p resenta t ion a t the 1995 IEEE/PES Winter Meeting, January 29, t o February 2 , 19915, New York, NY. Manuscript submitted May 30, 1994; made ava i lab le f o r pr in t ing November 23, 1994.

Narinder K. Saini Member

ENTERGY Services Corp Metairie, LA 70002

Brokering, Bidding, and Auctioning, 6.0 Regulatory, and 7.0 General. Although the content of many publications spanned two or more of these sections, the desire to limit document length required that all publications be placed in the single most appropriate section. Publications are sorted according to author or publication resource.

The assistance of the IEEE Task Force on Transmission Access and Non Utility Generation and the IEEE Engineering and Planning Economics Working Group is gratefully acknowledged with particular recognition for the suggestions, comments, and submissions provided by M.L. Baughman (CJniv. of Texas-Austin) and M. Sager (FIT). We would also l i e to thank the following people for their critical review and valuable contributions: D.R. Nevius, V. Sulzberger, and M. Curley (NERC), C.R. Heising (Industrial Reliability Tech), R.T. D' Aquanni (Applied Resources Group), M.I. Henderson (New York Power Authority), B. Wollenberg (Univ. of Minnesota), R.P. Felak (Consultant), H.H. Happ (Dept. of Public Service--New York State), D. Shirmohammadi (Pacific Gas & Electric CO), and James Barker (ECC Inc.).

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Parallel Flow Problem", Proc. 55th American Power Conference, Mar, 1993. Donalek, P., A. Angelos, "Transmission Connection Requirements for Non Utility Generators", proC. 52nd American Power Conference, 1990, pp.

Edison Electric Institute, P.S. Fox-Penner, "Electric Power Transmission and Wheeling: A Technical Primer", Washington, D.C., 1990. Edison Electric Institute, "Engineering and Reliability Effects of Increased Wheeling and Transmission Access: Factors For Consideration", Washington, D.C., 1988.

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National Science Foundation; Workshop Proceedings, "The Impact of a Less-Regulated Utility Environment on Power System Control and Security", Madison, Wisconsin, April 19-20, 1991. Prince, W.R., et. al., "Current Operating Problems Associated with Non-Utility Generation--Operations and Planning Problems with Cogeneration on Transmission Systems", IEEE T-PWRS, Vol. 4, no.

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48-65.

1991, pp. 30-45.

Subcommittee Member Biomauhies:

Craig B. Lankford - is Senior Engineer, Resource Planning, at the Oklahoma Gas and Electric Company, where he has been continuously employed since 1976. Mr. Lankford received the BSEE from Southern Methodist University, Dallas Texas (1976), and the MSEE from the University of Oklahoma (1988). He is the current chairman of the Oklahoma City Section of the IEEE and the bibliography sub- committee of the IEEE Task Force on Transmission Access and Non-Utility Generation. He is a member of several sub- committees and working groups of IEEE, EPRI, and the Southwest Power Pool. Mr. Lankford is a registered engineer in Oklahoma, a member of IEEE, and a member of Who's Who Worldwide.

James D. McCalley - is Assistant Professor of Electrical Engineering at Iowa State University, where he has been employed since 1992. Dr. McCalley received the B.S. (1986), M.S.(1986), and Ph.D.(1992) degrees from Georgia Tech and he was employed by Pacific Gas & Electric Company from 1986 to 1990. He is a registered professional engineer in California and Georgia and a member of the IEEE.

Narinder K. Sdni - is Senior Lead Engineer, Special Studies and Analysis, Transmission & Distribution Systems, Entergy Corporation, New Orleans. Mr. Saini has 25 years of electric utility experience, of which the past 9 have been with Entergy Corp. Mr. Saini received the BSEE from Punjabi University, India (1967), the MSEE from West Virginia University (1979), and the MBA from Ohio State University (1983). He is a registered Professional Engineer, Senior Member of the IEEE, and member of several Sub Committees and Working Groups of the LEEE and EPRI.

39

Discussion

Hugh Rudnick (Universidad Catcilica de Chile, Santiago, Chile) I congratulate the authors on a much needed bibliography. The literature is very extensive and I understand the difficulty in deciding on the most relevant to include. I suggested several of the references to the authors. particularly from outside the US, where earlier developments on transmission open access have taken place. The subject is critical for the stability of competitive deregulated environments and an explosion of research and development is taking place on the subject worldwide. The decision by the State of Californja 1281 to restmcture electricity services and the inquiry by the US Government on the subject of pricing policy for transmission services [32], will certainly stimulate further research in the US. In other countries it has implied close collaborative work between electrical engineers and economists; is that happening in the US?

New countries are adopting open access schemes as the basis of their deregulation actions. Perti and Bolivia are the latest in South America, with Colombia and Brazil most probably following [8]. An international panel on Transmission Open Access organized by Dr. T.W. Hissey, Macro Corporation, and myseE provided a global view of issues arising in the actual exercise of open access in different countries worldwide [9,24]. Europe has been considering open access [3,5], but disagreement has slowed the process [16], let aside the dif€iculties faced in such endeavor at a continental scale. Where is dissent to open access taking place in the US and which are the main concerns?

I suggest the following additional references: [l] Adamson, A.M., Garver, L.L., Maughn, J.N.,

Palermo, P.J., Stillinger, W.L., "Summary of Panel: Long Term Impact of Third- Party Transmission Use", IEEE Transactions on PAS, V. 6, N"3, Aug. 1991, pp. 1183-1188

[2] Agurto, R., "Toll Fees for the Use of the Transmission System in Chile: Analysis of the Concept of Areas of Influence", Proceedings of the 6th Latin-American and the Caribbean Congress on E l d c Energy Economic Tariffs, Mendom, Argentina, May 1992

[3] Argyris, N., "Regulatory Reform in the Electricity Sector: an Analysis of the Commission's Internal Market Proposals", Oxford Review of Economic Policy, V. 9, Spring 1993, pp. 31-44

[4] Baldick R., Kahn, E., "Network Costs and the Regulation of Wholesale Cornpetition in Electric Power", Journal of Regulatory Economics, No 5,1993, pp. 367-384

[5] Comission des Communautes Europeennes- Direction Generale de L' Energie, "First Draft Electricity Directive", Brussels, June 1991

[61 Doyle, C., Maher, M., "Common Carriage and the Pricing of Electricity Transmission" Energy Journal, Vol. 13, NO 3, 1992, pp. 63-94.

[7] F r o m , G., Chamorro, R., Rudnick, H., Rios, S., "Evaluation of Transmission Losses and Penalty Factors for

Marginal Cost Pricing", IFAC Symposium on Planning and Operation of Electric Energy Systems, Rio de Janeiro, Brazil, July 1985, pp. 371-377

[8] Hammons, T.J., "Latin American Power Policy", Report of 19941 PES Winter Meeting Panel Session, IEEE Power Engineeing Review, June 1994, pp. 3-30

[9] Hissey, T.W., "International Experience in Transmission Open Access", Report of 1994 PES Summer haeeting Panel Session, IEEE Power Engineering Review,

[ 101 Hogan, W. "Electric Transmission: A New Model for Old Principles", The Electricity Journal, March 1993.

[ 111 Hogan W. "Markets in Real Electric Networks Require Reactive Prices", Energy Journal, 1993.

[ 121 Hogan, W., Efficient Direct Access: Comments on the California Blue Book Proposals", The Electricity Journal, Sept. 1994.

[ 131 Kahn, A.E., "Can Regulation and Competition Coexist? Solutiions to the Stranded Cost Problem and Other Conundra", Thie Electricity Journal, Oct. 1994, pp. 23-35.

(141 Kahn, E., "Regional Transmission Group: How Should They ]Be Structured and What Should They Do?" From Regulation to Competition: New Frontiers in Electricity Markets, ed. M. Einhom, Kluwer Academic Publishers, 1994.

El51 Kahn, E. and R, Baldick, "Reactive Power is a Cheap Constraint", Tlhe Energy Journal, V.15, No 4, 1994

2161 Lederer, P., Bouttes, J. P., "Electricity Monopoly Versus Competition?", World Electricity Conference, Financial Times, London, Nov. 1990

[17] Lo, K.L, Zhu, S.P., "A Theory for Pricing Wheeled Power", Electric Power Systems Research, No 28, 1994, pp.

[18] Marangon Lima, J.J. , Pereira, M.V.F., Pereira, J.L.R, "An Integrated Framework for Cost Allocation in a Multi-omed 'Transmission System, Paper 94 SM 503-3 PWRS, IEEE PES 1994 Summer Power Meeting, San Francisco, CA.

[19] McCalBey, J., Sheble, G., "Compe4itive Electric Energy Systems: Engineering Issues in the Great Experiment", Tutorial Paper, Fourth International Conference of Probabilistic Methods Applied to Power Systems, Braziil, 1994

[20] Moskoinitz, D. and Foy, D., "Looking for Peace in the Middle of a Piervous Breakdown", The Electricity Journal,

1211 Outhred, H., "Achieving Least Cost Outcomes in the Emerging Competitive Electricity Industry", Second National Dernand Management and Energy Efftciency Conference, Canberra, Australia, July 1994

(221 OuWb H., "Principles of a Market-based Electricity Industry and Possible Steps Toward Implementation in Australia", Inikrnational Conference on Advances in Power System Control, Operation & Management, Hong Kong, December 1993

[23] Pace, J.D., "Wheeling and the Obligation to Serve", Energy Law Jloumal, 1987

Dec. 1994, pp. 3-18

19 1-200

NOV. 1994, p ~ . 22-33.

40

[24] Pkrez-Arriaga, I., Rudnick, H., Stadlin, W. "International Power System Transmission Open Access Experience", Paper 94 SM 489-5 PWRS, IEEE PES 1994 Summer Power Meeting, San Francisco, CA.

[25]Rudnick, H., Palm, R., Fernh- J.E, "Marginal Pricing and Supplement Cost AIlocation in Transmission Open Access", Paper 94 SM 528-0 PWIRS, IEEE PES 1994 Summer Power Meeting, San FrancisCO, CA

[26] Rudnick, H. "Transmission Open Access in Chile", Harvard Electricity Policy Group Fifth plenary Session, Harvard University, Oct. 1994

[27] Shirmohammadi, D., Vieira Filho, X., Gotestin, B., Pereira, M.V.F., "Transmission Pricing: Paradigm and Methodologies", 111 Symposium of Specialists in El&& Expansion and Operational Planning, Foz de Iguacy Brazil, 1994

[28] State of California Public Utilities Commission, 'Froposed Policy Statement on Restructuring California's Electric Services Indusuy and Reforming Regulatory Policy", April 20, 1994

[29] Stoa, P., Livik, K., Wangemteen, I., "Deregulation and Pricing in a Hydro Electric System", 7th IEE International Conference on Metering Apparatus and Tariffs for Electricity Supply, U.K., Nov. 1992

[30] Trans Power, "Transmission Pricing", New Zealan4 Jan. 1991

[3 11 Tye, W.B., "Competitive Access: a Comparative Industry Approach to the Essential Facility Doctrine", Energy Law JournaI, 1987

[32] US Federal Energy Regulatory Commission, "Inquiry Concerning the Commission's Pricing Policy for Transmission Services Provided by Public Utilities Under the Federal Power Act", Policy Statement, Oct. 26, 1994.

[33] Vieira Filho, X., Pereira, M.V.F., Nery, E.M.T., Hirota, M., "Methodology for Wheeling Rates in Transmission Systems", I11 Symposium of Specialists in Electrical Expansion and Operational Planning &lo Horizonte, Brazil, 1992

Manuscript received February 3, 1995.

C.B. Lankford (OG&E Electric Services), J.D. McCalley (Iowa State University), N.K. Snini (ENTERGY Services) :The authors sincerely appreciate the kind comments of Professor Rudnick, his additions to the bibliography, and this opportunity to respond to his questions.

In the United States, collaborative work between electrical engineers and economists regarding transmission access issues is in an early stage, and this is particularly true for R&D efforts. There are some indications, however, that this may soon change. For example, recently, there has been a significant increase in participation of brokerage and energy trading personnel (many of whom are economists) in traditional power engineering conferences such as the IEEE PES, the American Power Conference, and others. There are several areas where such engineer-economist collaborative efforts seem appropriate; two of them are: (1) development of appropriate prices for a menu of unbundled transmission related or ancillary services and (2) development of organizational and procedural methods of providing individual participant autonomy required by the market while still satisfying the coordination needs required to retain acceptable levels of system reliability.

Regarding Dr. Rudnick's second question, we believe most of theU.S. electric energy industry recognizes that competition will play a major role in the future, and any "dissent" correctly characterizes the expressions of only a few people. However, there are several issues that have focused discussion, and h s discussion is ongoing. As an example, the U.S. Federal Energy Regulatory Commission (FERC) has recently released a "Notice of Proposed Rule Malung" (NOPR) [l] which solicits comments f?om affected parties regarding many of these issues. We therefore refer Dr. Rudnick to this and other similar documents as timely summaries of current critical issues and main concerns regarding transmission open access in the United States.

In closing, we again thank Dr. Rudnick for his comments and for the si&icant addition of references to the bibliography. We note that several of these references were published in the nine-month period between May 1994, when this paper was submitted, and January 29, 1994, the date of the IEEE PES Winter Meeting. This shows the large amount of activity related to the bibliography subject, suggesting that periodic updates may be appropriate.

[l] FERC Notice of Proposed Rule Malung, 70 FERC 161,357; FERC Docket No. RM 95-8-000, issued March 29, 1995, 315 pages plus 173 pages appendices, and FERC Docket No. RM 94-7-001. These documents are available free of charge via computer modem download from the Commission Posting Service Bulletin Board, (202) 208-1397.

Manuscript received April 14, 1995.