Restructured Electrical Power Systems: Operation: Trading, and Volatility

Mohammad Shahidehpour, M. Alomoush

CRC Press, Jun 6, 2001 - Technology & Engineering - 534 pages

An examination of key issues in electric utilities restructuring. It covers: electric utility markets in and out of the USA; the Open Access Same-time Information System; tagging transactions; trading energy; hedging tools for managing risks in various markets; pricing volatility, risk and forecasting; regional transmission organization; and more. The text contains acronyms, a contract specifications sample, examples, and nearly 500 bibliographic citations, tables, and drawings.

Contents

• OVERVIEW OF KEY ISSUES IN ELECTRIC UTILITIES RESTRUCTURING: xix
• 12 RESTRUCTURING MODELS: 1
• 121 PoolCo Model: 3
• 122 Bilateral Contracts Direct Access Model: 6
• 123 Hybrid Model: 7
• 13 INDEPENDENT SYSTEM OPERATOR ISO: 8
• 132 The Role of ISO: 11
• 14 POWER EXCHANGE PX: 18
• 141 Market Clearing Price MCP: 22
• 152 Elastic and Inelastic Markets: 24
• 16 MARKET POWER: 34
• 17 STRANDED COSTS: 41
• 181 Contract Path Method: 42
• 182 The MWMile Method: 46
• 19 CONGESTION PRICING: 49
• 191 Congestion Pricing Methods: 52
• 192 Transmission Rights: 53
• 1101 Solution Procedure: 54
• 1102 Formulation of InterZonal Congestion: 57
• 1103 Formulation of IntraZonal Congestion Subproblem: 58
• ELECTRIC UTILITY MARKETS IN THE UNITED STATES: 71
• 211 ISO: 73
• 212 Generation: 74
• 214 Scheduling Coordinator: 75
• 215 UDCs Retailers and Customers: 79
• 217 Block Forwards Market: 95
• 218 Transmission Congestion Contracts TCCs: 97
• 219 Comments: 99
• 222 Market Operations: 101
• 223 Comments: 105
• 24 ERCOT ISO: 108
• 25 NEW ENGLAND ISO: 112
• 26 MIDWEST ISO: 117
• 261 MISOs Functions: 118
• 262 Transmission Management: 119
• 264 Congestion Management: 120
• 265 Ancillary Services Coordination: 121
• 27 SUMMARY OF FUNCTIONS OF US ISOs: 122
• OASIS OPEN ACCESS SAMETIME INFORMATION SYSTEM: 125
• 311 What is OASIS?: 127
• 32 FERC ORDER 889: 129
• 33 STRUCTURE OF OASIS: 130
• 332 Functionality and Architecture of OASIS: 133
• 34 IMPLEMENTATION OF OASIS PHASES: 139
• 341 Phase 1: 140
• 342 Phase 1A: 141
• 343 Phase 2: 142
• 352 Information Requirements of OASIS: 145
• 353 Users of OASIS: 147
• 36 TRANSFER CAPABILITY ON OASIS: 154
• 362 Transfer Capability Issues: 155
• 363 ATC Calculation: 156
• 364 TTC Calculation: 157
• 365 TRM Calculation: 159
• 366 CBM Calculation: 160
• 37 TRANSMISSION SERVICES: 161
• 38 METHODOLOGIES TO CALCULATE ATC: 165
• 39 EXPERIENCES WITH OASIS IN SOME RESTRUCTURING MODELS: 175
• 392 ERCOT OASIS: 177
• TAGGING ELECTRICITY TRANSACTIONS Transaction Information System: 181
• 42 DEFINITION OF TAGGING: 182
• 43 HISTORICAL BACKGROUND ON TAGGING: 183
• 44 HOW DOES A TAGGING PROCESS WORK?: 185
• 441 Electronic Tagging Services: 187
• 442 Sequence of Tagging Process: 192
• 443 Transaction Scheduling: 194
• 45 IDENTIFYING TAGS: 195
• 46 DATA ELEMENTS OF A TAG: 198
• 47 COMMUNICATION DURING FAILURE RECOVERY: 207
• 48 TRANSACTION STATES: 208
• 49 IMPLEMENTATION CURTAILMENT AND CANCELLATION OF TRANSACTIONS: 211
• 492 Curtailment and Cancellation of Transactions: 215
• ELECTRIC ENERGY TRADING: 217
• 51 INTRODUCTION: 218
• 52 ESSENCE OF ELECTRIC ENERGY TRADING: 219
• THE QUALIFYING FACTORS: 222
• 54 DERIVATIVES INSTRUMENTS OF ENERGY TRADING: 224
• 541 Forward Contracts: 226
• 542 Futures Contracts: 230
• 543 Options: 233
• 544 Swaps: 245
• 545 Applications of Derivatives in Electric Energy Trading: 246
• 55 PORTFOLIO MANAGEMENT: 262
• 551 Effect of Positions on Risk Management: 264
• 56 ENERGY TRADING HUBS: 267
• 57 BROKERS IN ELECTRICITY TRADING: 269
• HEDGING TOOLS FOR MANAGING RISKS IN ELECTRICITY MARKETS: 273
• 61 INTRODUCTION: 274
• 62 RISK: 277
• 63 DEFINITION OF HEDGE: 278
• 64 SOURCES OF ELECTRICITY MARKET RISKS: 280
• 643 Transmission Constraints: 281
• 65 VALUEatRISK VaR: 282
• 66 COUNTERPARTY RISK The Midwest Case: 284
• 661 What Did Happen in the Midwest?: 286
• 662 Factor Contributing to Counterparty Risk: 287
• 663 Managing Counterparty Risk: 288
• 664 CalPX and Counterparty Risk: 289
• 665 Lessons Learned in Risk Management: 291
• 67 THE GREEKS: 293
• 68 RISK EVALUATION IN ELECTRICITY TRADING: 296
• 681 Swap Transaction as a Hedging Instrument: 300
• 682 Additional Hedging Tools: 304
• 69 HEDGING WEATHER RISKS: 306
• 691 Background: 308
• 692 Weather Hedging Tools: 321
• 693 Examples: 324
• 610 CONCLUSIONS: 328
• ELECTRICITY PRICING Volatility Risk and Forecasting: 333
• 71 INTRODUCTION: 334
• 72 ELECTRICITY PRICE VOLATILITY: 335
• 721 Factors in Volatility: 338
• 722 Measuring Volatility: 341
• 73 ELECTRICITY PRICE INDEXES: 345
• Volatility of Prices in California: 348
• 732 Basis Risk: 350
• 74 CHALLENGES TO ELECTRICITY PRICING: 353
• 742 Reliable Forward Curves: 354
• 75 CONSTRUCTION OF FORWARD PRICE CURVES: 355
• 76 SHORTTERM PRICE FORECASTING: 359
• 762 Forecasting Methods: 361
• 763 ANALYZING FORECASTING ERRORS: 362
• 764 Practical Data Study: 363
• 7641 Impact of Data PreProcessing: 364
• 7642 Impact of Training Vectors: 367
• 7643 Impact of Adaptive Forecasting: 369
• 77 CONCLUSIONS: 370
• RTO REGIONAL TRANSMISSION ORGANIZATION: 373
• 82 HISTORICAL PERSPECTIVES FOR ESTABLISHING RTOS: 375
• 83 FERC NOPR ON RTO: 377
• 84 FERCS FINAL RULE ON RTO: 379
• 841 Organization of an RTO: 380
• 85 MINIMUM CHARACTERISTICS OF AN RTO: 381
• 86 MINIMUM FUNCTIONS OF AN RTO: 386
• 87 BENEFITS OF RTO: 390
• ELECTRIC UTILITY MARKETS OUTSIDE THE UNITED STATES: 393
• 911 Congestion Management: 398
• 912 Bilateral Contracts: 401
• 913 Marketplace for Electric Power Options: 403
• 92 AUSTRALIA NATIONAL ELECTRICITY MARKET: 405
• 93 RESTRUCTURING IN CANADA: 418
• 932 The Independent Electricity Market Operator IMO: 429
• 94 ELECTRICITY INDUSTRY IN ENGLAND AND WALES: 434
• ACRONYMS: 441
• A SAMPLE OF ELECTRICITY CONTRACT SPECIFICATIONS: 447
• BIBLIOGRAPHY: 459
• INDEX: 485

Popular passages

Page 464 - Promoting Wholesale Competition Through Open Access Non-discriminatory Transmission Services by Public Utilities; Recovery of Stranded Costs by Public Utilities and Transmitting Utilities" and 889 "Open Access Same-Time Information System and Standards of Conduct.‎

Page 474 - Reliability Test System Task Force of the Application of Probability Methods Subcommittee, "IEEE Reliability Test System", IEEE Transactions on Power Apparatus and Systems, Vol.‎

Page 475 - Evaluation of alternatives for power system coordination and pooling in a competitive environment', IEEE Transactions on Power Systems, Vol.l2, 1997, pp.605-613.‎

Bibliographic information

• Title: Restructured Electrical Power Systems: Operation: Trading, and Volatility; Power Engineering (Willis)
• Authors: Mohammad Shahidehpour, M. Alomoush
• Edition: illustrated
• Publisher: CRC Press, 2001
• ISBN: 082470620X, 9780824706203
• Length: 534 pages
• Subjects: Technology & Engineering / Electrical; Technology & Engineering / Electronics / General; Technology & Engineering / Power Resources / General