How the TransmissionSystem Works

Really

William F. Reinke

2

Acknowledgements

● Don Benjamin – NERC Staff www.nerc.com

● Terry Boston - TVA

Topics

● Purpose of the transmission system● Structure

Bits and pieces, odds and ends

● How to buy and sell electricity Before and after deregulation

● Major blackout chronology● Important dates

Characteristics of Electricity

● Travels at the speed of light● Cannot be stored● Network must be continuously

connected Cannot be “routed”

Terms

● Voltage volts pressure● Current amps flow● Power watts v x a● Energy watt-hours watts x

time● Frequency hertz cycles/sec● Fundamental Laws

Ohm Kirchhoff

6

Power System Overview

7

Substations

Circuit Breakers

● Open breaker Power can’t flow

● Closed breaker Power can flow

● Trip: Closed Opened

9

Bulk Power Transformers

11

12

13

14

Distribution Transformers

Purpose of Transmission

● Connect generators to each other and to the distribution system Handle contingencies (equipment

failures) Dispatch generation economically

● Connect utilities to each other Buying and selling electricity Reserve sharing

But it’s not like...

● The natural gas pipeline system● The telephone system● The water system● The transportation system● These are examples of “switched”

systems…because electricity can’t be routed!

The Control Area (Balancing Authority)

MM

ControlCenter

Generating Plant #1

Generating Plant #2 Customers

Control Areas (Balancing Authorities)

MA

CD

BM

M

M

M

M

M

M

The Steps of an Interchange TransactionBefore Deregulation

● 3:40 pm Schedule● 3:55 pm Confirm● 4:00 pm Begin

interchange Seller increases generation Buyer decreases generation

● 5:00 pm End Seller decreases generation Buyer increases generation

Sale from A to B at 4-5 pm of 100 MW

A$20/MWh

B$40/MWh

100 MW

Interchange Price= (A+B)/2= $30/ MWhSet up by system operators

The Steps of an Interchange TransactionAfter Deregulation

● 3:40 pm Schedule● 3:55 pm Confirm● 4:00 pm Begin

interchange Seller increases generation Buyer decreases generation

● 5:00 pm End Seller decreases generation Buyer increases generation

Sale from A to B at 4-5 pm of 100 MW

100 MW

• Interchange Price Depends on Market

• Set up by Merchants

M1 M2

A$20/MWh

B$40/MWh

The Interconnections

EasternInterconnection

WesternInterconnection

ERCOTInterconnection

22

Regional Entities

23November 9, 1965April 3/ 4, 1976July 13, 1977July 2/3, 1996August 10, 1996June 25, 19982000/2001May 15, 2003August 14, 2003

Widespread DisturbancesWidespread Disturbances

March 8, 2004

SERSERCC

24

KEY INDUSTRY DATES● 1965 Northeast Blackout● 1968 NERC Formed● 1970 SERC Formed● 1973 Oil Embargo, end of 7% annual growth● 1977 National Energy Plan – Created DOE● 1978 Public Utility Regulatory Policy Act

(PURPA)● 1978 Power Plant and Fuel Use Act● 1979 Three Mile Island● 1992 Energy Policy Act● 1996 FERC Orders 888, 889● 1996 California Restructuring● 2000 FERC Order 2000 RTOs

25

KEY INDUSTRY DATES● 2001 September 11● 2002 FERC Standard Market Design

Notice Of Proposed Rulemaking● 2003 FERC Wholesale Power Market

Platform White Paper● August 2003 Blackout● August 2005 Energy Policy Act of 2005● February 2006 FERC Order 672 establishing

rules concerning the certification of the Electric Reliability Organization and procedures for the establishment, approval, and

enforcement of Electric Reliability Standards

26

KEY INDUSTRY DATES● April 2006 NERC files Application to become

the Electric Reliability Organization

● July 2006 NERC Certified as the Electric Reliability Organization

● Nov 2006 Regional Entity Delegation Agreements Filed

● March 2007 FERC Order 693 approving 83 reliability standards and making compliance with reliability standards mandatory for all owners, operators and users of the bulk power system

27

KEY INDUSTRY DATES

● April 2007 FERC approves Delegation Agreements between NERC

and the eight Regional Entities● June 18, 2007 Reliability Standards

become mandatory for all owners, operators and users of the bulk power system