Dennis Ray

Engineering foundations for the determination of security costs

Power system security is characterized by using distances to system operational limits (including voltage collapse limits, stability limits, line and transformer overloads, and generator limits). It uses the point of collapse method based on the singularity of the power flow Jacobian to define an operational limit boundary in load demand space. Distances to this boundary are then translated into probabilistic measures of likelihood of system failure: probability of normal status, expected demand not served, expected unserved energy, and, ultimately, expected outage cost. Sensitivities of these measures to load and generation changes (important for operational decisions and real-time pricing) are also described. A numerical example is presented. Computational issues are discussed. >

Engineering the Future

A collaborative effort to strengthen the U.S. power and energy workforce. Some of us are old, some of us are young, and some of us refuse to acknowledge the difference. At any age, electric power and energy engineers contribute to the sustainability of life on this planet and the future growth of technology and society on all fronts. At a time when the U.S. economy is still struggling to employ more people, the power and energy sector worries about new talent to replace retiring experience. This article introduces readers to the Power and Energy Engineering Workforce Collaborative (PWC), an initiative on the part of IEEE Power & Energy Society (PES). The PWC was created to strengthen the U.S. power and energy workforce needed for the smart grid of the future and related technologies. Much of the material included here comes from the document shown in Figure 1. As these workforce issues greatly affect the United States, this work is being closely coordinated with IEEE-USA.

Professional resources to implement the “smart grid”

A widely supported effort to modernize the United States power system has led to an engineering initiative variously known as ‘smart grid’, ‘intelligrid’, “gridwise”, “modern grid”, “perfect grid”, “future grid”, and similarly denominated programs. These efforts generally include features of: self-healing from power disturbance events, enabling active participation by consumers, assuring resilient operation against physical and cyber attack, delivering power quality for digital economy, accommodating all generation and storage options, enabling new products, and optimizing the use of assets. This paper addresses the question as to where engineers needed to address the smart grid will be educated, how they should be trained, and to what levels of comprehension in integrative fields they must be educated.

Operational risks, bidding strategies and information policies in restructured power markets

Abstract Advanced analytical tools are enabling the estimation of new measures of operational reliability in power systems. In bid-based and bilateral contract markets, these estimates provide valuable information to market participants. Such information improves market efficiency through more informed decision-making. However, it may also result in opportunistic bidding strategies that adversely affects economic efficiency. The relationship between risk and bidding strategies is explored in the paper. The importance of the availability of a good information set on reliability is demonstrated analytically. Examples of information availability in restructured markets is given and questions about the dimensions of market information policies are discussed. An illustrative example shows how private gains from withholding information can be obtained.

Electric Utility Least-Cost Planning Making It Work within a Multiattribute Decision-Making Framework

Abstract Least-cost planning is transforming the planning process traditionally used in the electric utility industry. As compared to the traditional planning process, least-cost planning broadens the participation by multiple parties and widens the range of the planning options that are assessed. Its integrative nature opens consideration of multiple planning objectives (such as social, environmental, and economic objectives) in evaluating demand-side and supply-side options. Economic rationales for least-cost planning are found in neoclassical and institutional economic thought. Multiattribute decision analysis provides an analytical and decision-making framework for least-cost planning; it can be used to identify issues, objectives, preferences, and expected consequences of planning options.

“Fifty in five”: The prospects for merger in the electric utility industry

By analyzing four case studies of merger attempts between electric utilities, we conclude that there are not strong incentives for a wave of combinations in the industry. Potential synergy gains do not provide a strong motivation since they are likely already being captured through joint ventures and coordination agreements. Those that still exist would most likely be distributed to rate payers by regulatory decisions. Managerial incentives of the bidder are countered by the desire of target management to remain independent. Potential gains to the financial community from a wave of mergers are large, but the regulatory process provides a dampening of this otherwise strong incentive.

Strategies to Address the Problem of Exiting Expertise in the Electric Power Industry

Retirements, restructuring, and technology changes are producing an accelerating exodus of expertise from the electric power industry. In this paper we review the major approaches to address that challenge: managing available resources, outsourcing, automating, recording, and educating. The approaches may all be used in a comprehensive strategy to overcome exiting expertise. Each approach has different implications for the resources needed to be successful. The responses to date have not been sufficiently comprehensive and of adequate scale to address the looming workforce losses. Our thesis is that the needed leadership by executives, policymakers, and academia to comprehensively address the expertise exodus challenge will be enhanced by a better understanding of the diverse approaches and of where effective intervention with sufficient resources is needed.

Influence of operational risk assessment on bidding strategies in power markets

Advanced analytical tools are enabling the estimation of new measures of operational reliability in power systems. In bid-based power markets, these estimates could be included in the information set that is provided to bidders. Such information could lead to improved market efficiency due to more informed decision-making, or to opportunistic bidding strategies that adversely affect economic efficiency. The paper explores the relationship between risk assessment and bidding strategies. Implications of that relationship for market information policies are assessed. Of particular focus is information on operational reliability effects of incremental changes in generation levels.

Services in an Unbundled and Open Electric Services Marketplace

Unbundling in the electric services industry (ESI) will result in greater diversity in customer services and service providers. Unbundling raises interesting questions for business and public policy-makers because it is neither a benign activity from the stand-point of efficiency or equity, nor, in certain circumstances, a desireable policy due to economic and technical constraints. This paper provides an overview of unbundling objectives and principles, and identifies key questions decision-makers should address in developing unbundling policies. A numerical example illustrates that value can be created when customers have hetereogenous needs for electric service attributes.

Market forces and planning by regulation : Conflicts and complementarities

Abstract The US electric utility industry is being shaped by two seemingly competing policy directives. Federal policy has embraced a movement towards greater reliance on market forces (selective deregulation) as a means to shape electric utility industry growth and development. Indeed, many utilities would like to be free of regulatory control and to be able to price their services on the basis of what the market will bear. Simultaneously, regulatory policy in many states has placed greater reliance on planning: particularly with the use of advance plans, least-cost plans, or integrated resource plans. The purpose of this paper is to consider the movement towards deregulation and the need for planning in the electric utility industry. The various policy initiatives that would be necessary to protect planning and promote effective competition are discussed.