Distribution System Training

The main objective of this module is to present and discuss the major changes being brought about by deregulation of the electric power business. We look at the effects of deregulation on power generation, transmission, system operation, distribution and marketing.

After completion of this module, the participant should be able to understand the following concepts and apply them in day-to-day activities.

• The major aims of deregulation (i.e. to remove the monopoly status from the power supplier side of the business and replace it with competition)
• Operation of a typical deregulated power pool
• The basic tasks of the independent operating authority
• Bidding by generating companies such as:

1. Utility power plants
2. IPPs (Independent Power Producers)
3. Cogeneration plants

• Concept of the marginal price setting the pool purchase price for each specific time period throughout the day
• The effect of transmission constraints
• Charges for transmission and system operation ancillary services
• Calculation of the pool selling price (spot market price)
• Hedging contracts to protect the wholesale buyers against wide fluctuations in spot market price
• Direct bilateral transactions between buyer and seller
• Open transmission access at non-discriminatory prices
• Open access same time information system – “OASIS”
• Reserving and scheduling bilateral power flows through the transmission route
• Ancillary services that are essential to support system operation
• Freedom of choice of supplier for individual retail customers
• Separate charges for use of the distribution system to allow bilateral transactions by retail customers
• Itemized customer billing as distinct from the all-in tariff offered under the traditional regulated system
• Typical distribution company initiatives made to retain customers within their system