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by Computer Site
Engineering, Inc.
Utilities Have Not Made Necessary
Upgrades to Prevent Further Power-Grid Degradation
Power outages and fluctuations that occurred in some areas of the United
States last summer are a disturbing indicator of declining electric-supply
reliability. According to a U.S. Department of Energy (DOE) study released
in January 2000, electric-utility deregulation has resulted in a significant
degradation in North America's electricity-supply system reliability during
peak usage periods. The study focuses on eight "power reliability
events" (both power outages and severe voltage fluctuations) that
occurred primarily in . the Northeast and also in Chicago and in south-central
states during the summer of 1999.
Results of the DOE study suggest that
such problems may worsen this summer .because utilities have not made
necessary, upgrades to prevent power grids from breaking down. Without
mandated guidance from regulators, electric-system operators are finding
it increasingly difficult to provide acceptable levels of reliability
during periods of high demand and also compete in a deregulated marketplace.
Deregulation has focused on trading electricity and has largely overlooked
the need for grid reserves that provide a public- reliability benefit
but don't provide income to their owners.
Additional concerns needing to be
addressed include aging components, timely and accurate maintenance, the
disappearance of the industrial capacity required to build/repair major
electrical components when they fail, and increasingly inadequate manual
dispatching mechanisms for quickly redirecting the flow of power.
The electricity grids that serve the
U.S. and Canada continue to use relatively small regional interconnections
that rely on voluntary controls to back up utility system during periods
of peak use. With electric utilities joining the competitive market, long-established
arrangements that have provided reliable electricity in the past are now
being challenged. If one part of the regional interconnection grid experiences
major disturbances, the effect is likely to spread throughout that interconnection
and can also ripple into adjacent regional systems.
Reserves are declining
In a regulated environment, all customers pay for the inefficiency of
spinning reserve, which is the portion of system generation capacity.
that is running or "spinning" but not generating power that
can be sold to defray the cost of equipment operation. In the event of
a fault or heavy surge in demand, this idling capacity can be brought
on line simply by applying more fuel. The instantaneous ability to convert.
spinning reserve to generation helps stabilize system performance and
is an important predictor of supply-system reliability. Only thirty years
ago, spinning reserves in the range of 25% to 30% were not uncommon.
In a deregulated environment, spinning
reserves that do not produce electricity are considered a luxury and a
loss of revenue. And so are operating reserves, which are defined as standby
generation capacity that can be brought on line within 15 minutes. Unless
government regulations require a minimal percentage of reserve, operators
will be motivated to run systems as close to maximum capacity as possible,
with no spinning or operating reserve.
In this growing economy, the demand
for reliable electricity is also increasing. And while the electric-utility
industry is now undergoing the transition to a competitive marketplace,
the regulations and operating standards needed to maintain an acceptable
level of system reliability have not yet been established.
The full DOE report, Interim Report of the U.S. Department of Energy's
Power Outage Study Team, is available at http://tis.eh.doe.gov/post.
Article ©2000, Computersite Engineering Inc..
www.upsite.com. Computersite
Engineering is a nationally recognized, technically competent, management
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