Understanding Electric Power Systems

JACK CASAZZA is an electrical engineer with wide experience in the electric power profession as an executive, researcher, economist, and consultant. He has served as vice president in a major utility responsible for elec- tric and gas planning and research, as a member of the Board of Directors of the Georgia System Operating Co., and as chairman of the U.S. Technical Committee of CIGRE. Casazza is the author of six books on electric power policy and technology and founded the American Education Institute. An IEEE Life Fellow, he received the Halperin Award for his contributions to the development of the national transmission system. FRANK DELEA is retired from Consolidated Edison Company, where he had a wide range of assignments giving him insight into planning, operational, financial, organizational, and legal issues. He was the company's chief electric planning engineer, its chief forecast engineer, its first project manager for rate cases, and a corporate planning director. He is an IEEE Senior Member. Since his retirement, Delea has conducted many short courses in technical, business, and regulatory issues relating to electric power systems for non-engineers.

• Preface to the Second Edition xvAcknowledgments xixChapter 1 Benefits of Electric Power and a History of the Electric Power Industry 11.1 Societal Benefits of Electricity 11.2 Origin of the Industry 21.3 The Development of the National Electric Power Grid 51.4 “The Golden Age” 8Blackouts and the Reliability Crisis 9The Environmental Crises—The Shift to Low-Sulfur Oil 10The Fuel Crisis—The Shift from Oil 10The Financial Crisis 11The Legislative and Regulatory Crisis 121.5 Global Warming Crisis and Concerns about Carbon Emissions 131.6 Restructuring, Competition, and the Industry 13Ownership StructureChapter 2 The Electric Power System 152.1 The Customers 162.2 Sources of the Electric Energy—Generation 172.3 The Delivery System 20Interconnections 24The Grid 24Chapter 3 Basic Electric Power Concepts 273.1 Electric Energy 283.2 Concepts Relating to the Flow of Electricity 30Direct Current (DC) 31Alternating Current (AC) 31Three Phases 33Synchronism 343.3 Characteristics of AC Systems 34Resistance 34Induction and Inductive Reactance 35Capacitance and Capacitive Reactance 36Impedance 383.4 Ohm’s Law for Alternating Current 383.5 Power in Alternating Current Circuits 39Real Power 40Reactive Power 40Transformers 423.6 Power Flow 43Division of Power Flow 43Voltage Drop and Reactive Power Flow 443.7 Stability 44Automatic Generation Controls (AGC) 46Results of Instability 47Chapter 4 Electric Energy Consumption 494.1 End Uses for Electricity 494.2 Customer Classes 504.3 Rate Classes 514.4 Demand and Energy 51Energy 52Effects of Load Diversity 534.5 System Load 55Load Management 574.6 Reactive Load 594.7 Losses and Unaccounted-For Energy in the Delivery System 594.8 Forecasts 61Chapter 5 Electric Power Generation and Concerns About Greenhouse Gases 655.1 Generation’s Role 655.2 Types of Generation 665.3 Thermal Conversion: Using Fuel as the Energy Resource 69Steam Cycle—Steam Turbines 69Combustion (Gas) Turbines 70Combined Cycle 71Nuclear 72Reciprocating Engines 73Microturbines 74Combined Heat and Power (CHP) or Cogeneration 745.4 Thermal Conversion: Nonfuel Heat Sources 74Geothermal 74Solar Thermal Generation 755.5 Mechanical Energy Conversion 75Hydroturbines and Hydropumped Storage 75Wind Turbines 77Distributed Generation and Other Sources 785.6 Renewable Technologies and Greenhouse Gas Emissions 79Supply-Side Options to Reduce Greenhouse Gas Emissions 79Financial Options to Reduce Carbon Emissions 835.7 Characteristics of Generating Plants 84Size 85Efficiency 87Availability 88Schedulable and Unschedulable Units 905.8 Capital Cost of Generation 905.9 Generator Life Extension 915.10 The Technology of Generation 91Synchronous Generators 91Variable Frequency and Direct Current Generation 925.11 System Needs and Evaluation of Intermittent Resources 93Chapter 6 The Technology of the Electric Transmission System 976.1 Components 976.2 HVAC 98Overhead Lines 98Overhead Line Capability—Ratings 99Transmission Cable 101Cable Capacity 101Submarine Cables 102Superconducting Cables 1026.3 Substations 102Substation Equipment 103Substation Circuit Breaker Arrangements 108Transmission System Aging 1086.4 HVDC 1086.5 Advantages of AC over DC Operation 110Advantages of HVDC 111Disadvantages of HVDC 1126.5 Knowledge Required of Transmission Systems 113Chapter 7 Distribution 1157.1 Function of Distribution 1157.2 Primary Distribution Feeders 116Radial Systems 116Loop Systems 117Primary Network Systems 117Secondary Systems 1177.3 Distribution Capacity 1187.4 Losses 1197.5 Distribution Facility Ratings 1197.6 Metering 1207.7 Control of Distribution Voltages 120Distribution Transformers 121Voltage Regulators 122Capacitors 1237.8 Distribution System Reliability 1237.10 Quality of Service 1247.11 Design of Distribution Systems 1257.12 Distributed Generation 1257.13 Operation of Distribution Systems 1267.14 Smart Grids and Microgrids 127Chapter 8 Energy Storage and Other New Technologies 1298.1 Energy Storage 131Benefits of Energy Storage to Generation 131Benefits of Energy Storage to Transmission and Distribution 1328.2 Energy Storage Concepts and Technologies 133Mechanical Systems 133Thermal Energy Storage 136Chemical Energy Storage 138Batteries 138Hydrogen Energy Storage Systems 139Electrical Storage 140Superconducting Magnetic Energy Storage 141Power Conversion Equipment 141The Future for Energy Storage 1428.3 Smart Grid 142Microgrids 1468.4 New Nuclear Plant Designs 1468.5 Carbon Sequestration and Clean Coal Technologies 1508.6 Superconductors 153Chapter 9 Reliability 1559.1 Causes of Outages 1559.2 Costs of Power Outages 1579.3 Ways to Measure Reliability 1589.4 Planning and Operating a Reliable and Adequate 159Power SystemGeneration 164Transmission 165Distribution 1669.5 Summary 166Chapter 10 The Physical Network: The North American Electric Reliability Corporation (NERC) and Its Standards 16710.1 NERC as Electric Reliability Organization 16910.2 NERC Standards 171Functional Model 17110.3 Development of Standards 176Reliability Principles 177Market Interface Principles 177Compliance with NERC Standards 179Other NERC Responsibilities 179The Future 180Chapter 11 The Physical Network: Operation of the Electric Bulk Power 18111.1 Balancing Authorities 181Area Control 182Operating Reserves 18411.2 Reliability Coordinators 18411.3 Transmission Operators 186Power Transfer Limits 186Determination of Total Transfer Capability 187Parallel Path Flow and Loop Flow 188Reduction of Power Transfers—Congestion Management 189Ancillary Services 18911.4 Voltage and Reactive Control 19111.5 Emergencies 192Operating Emergencies 19311.6 Information Exchange 194Chapter 12 The Physical Network: Planning of the Electric Bulk Power System 19712.1 Planning Standards 19812.2 Generation Planning 19812.3 Transmission Planning 200Transmission System Planning Studies 20312.4 Least Cost Planning 20512.5 The New Planning Environment 205Recent Transmission Projects 211Chapter 13 The Regulatory Network: Legislation 21313.1 Pricing and Regulation 21313.2 Federal Legislation 21413.3 Federal Utility Holding Company Act (PUHCA) 21413.4 Federal Power Act 21613.5 Other 1930 Federal Laws 21913.6 Department of Energy Organization Act 21913.7 Public Utility Regulatory Policies Act (PURPA) 22013.8 Energy Policy Act of 1992 (EPAct02) 22213.9 The Energy Policy Act of 2005 (EPAct05) 22413.10 The Energy Independence and Security Act of 2007 22713.11 Environmental Laws 22713.12 2009 American Recovery and Reinvestment Act 230Chapter 14 The Regulatory Network: The Regulators 23114.1 The Regulators 231Federal Energy Regulatory Commission (FERC) 231Environmental Protection Agency (EPA) 233Department of Energy (DOE) 234Nuclear Regulatory Commission (NRC) 236Recent Federal Regulations 237FERC Actions after EPAct92 237FERC Actions Implementing EPAct05 242Market Manipulation 242Electricity Reliability and Infrastructure 242Expansion and Modernization of the Nation’s Electricity Grid 245Siting Major New Transmission Facilities 245PURPA Reforms 246Repeal of PUHCA—Mergers and Acquisitions 246Market-Based Rates 247Recent EPA Actions 248State Regulatory Authority 249State Utility Restructuring 250Overall Regulatory Problems 251Chapter 15 The Information, Communication, and Control Network and Security 25315.1 Smart Grid 25315.2 Financial and Business Operations 25415.3 System Operations 25515.4 Distribution Operations 25515.5 Cyber Security 25615.6 Nuclear Plant Security 259Chapter 16 The Fuel and Energy Network 26116.1 Resource Procurement 264Fuel Measurements 26516.2 Fuel Transportation 26516.3 Fuel Diversity 26616.4 Fossil Fuels Used 26716.5 Renewable Energy 26916.6 Fuel Purchasing 27116.7 Emission Rights 271Chapter 17 The Business Network: Market Participants 27317.1 Investment and Cost Recovery 27317.2 The Changing Industry Structure 274Functional Unbundling 274Additional Utility Responses 275ISO/RTO Formation 275Holding Company Formation 275Power Plant Divestitures 27717.3 New Structures 279Power Producers 279Independent Transmission Companies and Operators 279Impact of Restructuring on the Transmission System 280Distributors 280Power Marketers 28117.4 New Corporate Ownership 281Utility Mergers and Acquisitions 282Acquisitions by Foreign Companies 282Financial Institutions 283Chapter 18 The Money Network: Wholesale Markets 28518.1 The Energy Markets 286Standard Market Design (SMD) 288Locational Marginal Pricing (LMP) 28918.2 Transmission 291Transmission Rights 291Physical Transmission Rights (PTRs) 292Financial Transmission Rights (FTRs) 293Wheeling and Customer Choice 294Contracts and Agreements 294Average System versus Incremental Costs 29518.3 Customer Late Issues 294Construction Work in Progress (CWIP) 295Setting of Rates 296Rate Freezes 296Allocation of Costs and Economic Benefits 296Average Costs versus Incremental Costs 29718.4 Market versus Operational Control 29818.5 Market Power Issues 298Price Caps 29918.6 The Future 299Chapter 19 The Professional and Industry Organizations 30119.1 The Professional Organizations 301The Institute of Electrical and Electronics Engineers (IEEE) 301The American Society of Civil Engineers (ASCE) 303American Society of Mechanical Engineers 304(ASME) and the American Institute of Chemical Engineers (AIChE) CIGRE 30419.2 Industry Associations 304NEMA 304The Association of Edison Illuminating 305Companies (AEIC)The American Public Power Association (APPA) 305The Edison Electric Institute (EEI) 306The Electricity Consumer Resource Council (ELCON) 306The National Rural Electric Cooperative Association (NRECA) 307Electric Power Supply Association (EPSA) 307The Nuclear Energy Institute (NEI) 30819.3 Public Interest Groups 308The National Association of Regulatory Utility 308Commissioners (NARUC)Environmental Defense Fund (EDF) 308Public Citizen 309Public Interest Law Project 30919.4 Research Organizations 309The Electric Power Research Institute (EPRI) 310Other Research 310The National Regulatory Research Institute (NRRI) 311The Power Systems Engineering Research Center (PSERC) 311Index 313