Understanding Electric Power Systems

An Overview of the Technology, the Marketplace, and Government Regulations

Frank Delea, Jack Casazza

• Publisher: Wiley-IEEE Press
• Year: 2011
• ISBN:
  9781118211373
• Edition: 2
• Topic: Technology & Engineering
• Subtopic: Electrical Engineering & Telecommunications
• Index: Technology & Engineering

A COMPREHENSIVE LOOK IN LAYMAN'S TERMS AT THE MANY ASPECTS OF THE PROVISION OF ELECTRIC POWER, BY TWO VETERAN EXECUTIVES AND RESPECTED EXPERTS

Technological advances and changes in government policy and regulation have altered the electric power industry in recent years and will continue to impact it for quite some time. Fully updated with the latest changes to regulation, structure, and technology, this new edition of Understanding Electric Power Systems offers a real-world view of the industry, explaining how it operates, how it is structured, and how electricity is regulated and priced. It includes extensive references for the reader and will be especially useful to lawyers, government officials, regulators, engineers, and students, as well as the general public.

The book explains the physical functioning of electric power systems, the electric power business in today's environment, and the related institutions, including recent changes in the roles of the Federal Energy Regulatory Commission and the North American Reliability Company. Significant changes that are affecting the industry are covered in this new edition, including:

• The expanded role of the federal government in the planning and operation of the nation's electric utilities
• New energy laws and a large number of FERC regulations implementing these laws
• Concerns over global warming and potential impacts on the electric industry
• Pressures for expansion of the electric grid and the implementation of "smart-grid" technologies
• The growing importance of various energy-storage technologies and renewable energy sources
• New nuclear generation technologies
• The 2009 economic stimulus package

CHAPTER 1

BENEFITS OF ELECTRIC POWER AND A HISTORY OF THE ELECTRIC POWER INDUSTRY

1.1 SOCIETAL BENEFITS OF ELECTRICITY

Electric power is one of the mainstays of our lives and the life of our nation. It differentiates advanced societies from third world nations. It touches almost every facet of our lives: our homes, our businesses, our schools, our transportation, and our leisure time. It is there when we are born, and it is there when we die. Think of the impact on our lives if we were not able to watch our favorite TV shows, use our home computers, heat and cool our homes, refrigerate our food, wash our clothes or our dishes, or read at night. Yet most people take it for granted, except during those relatively rare times when it is unavailable or when we receive our electric bills and note that the charges have suddenly and unexplainedly increased.

We know we have power outlets in our homes and businesses and we may notice the distribution wires running along our streets or if we pass high-voltage transmission towers, but many of us do not know how the whole system works. Some of us are affected because we live close to new or proposed electric power facilities, generating plants, or transmission lines and substations. Some may have concerns about the economic or environmental effects of producing electricity.

The National Academy of Engineering has described the de velopment of the national electric power system as the greatest engineering achievement of the 20th century. It has involved legions of electrical, civil, mechanical, nuclear, software, and environmental engineers working for utilities and manufacturers. It also required individuals involved in everything from meter reading, to construction, operation, and maintenance of the power plants and the transmission and distribution lines, and to specialists in accounting, finance, customer relations, public affairs, and even law. Unfortunately, electric power is not a topic covered in our schools and is barely covered in our media. Even individuals who work for utilities may not know the “big picture” outside of their specialties. Decisions are often made about electric power issues with little or no input from the general public and little or no understanding of the technical and economic issues by lawmakers.

The electric industry is large and complex, involving technical, business, and governmental aspects. It cannot be viewed or understood unless one is also familiar with the regulatory environment in which it operates. This book attempts to inform its readers so that they may understand the continuing discussions and debates about the industry and its future and may be able to participate and have their own views heard.

1.2 ORIGIN OF THE INDUSTRY

The electric utility industry can trace its beginnings to the early 1880s. During that period, several companies were formed and installed water-power-driven generation for the operation of arc lights for street lighting, which was the first real application for electricity in the United States. In 1882, Thomas Edison placed into operation the historic Pearl Street steam-electric plant and the pioneer direct current distribution system by which electricity was supplied to the business offices of downtown New York. By the end of 1882, Edison’s company was serving 500 customers that were using more than 10,000 electric lamps. The early Edison systems delivered the electricity by using low-voltage direct current (DC).

Satisfied with the financial and technical results of the New York City operation, licenses were issued by Edison to local businessmen in various communities to organize and operate electric lighting companies.¹ By 1884, twenty companies were scattered in communities in Massachusetts, Pennsylvania, and Ohio; in 1885, thirty-one; in 1886, forty-eight; and in 1887, sixty-two. These companies furnished energy for lighting incandescent lamps, and all operated under Edison patents.

Two other achievements occurred in 1882: a water-wheel-driven generator was installed in Appleton, Wisconsin; and the first transmission line was built in Germany to operate at 2400 volts direct current over a distance of 37 miles (59 km).² Motors were introduced and the use of incandescent lamps continued to increase. By 1886, the DC systems were experiencing limitations because they could deliver energy only a short distance from their stations since their voltage could not be increased or decreased as necessary. In the United States, the use of alternating current (AC) was championed by George Westinghouse and Nikola Tesla. In 1885, a commercially practical transformer was developed, which allowed the development of an AC system. A 4000 volt AC transmission line was installed between Oregon City and Portland, 13 miles away. A 112 mile, 12,000 volt, three-phase line went into operation in 1891 in Germany. The first three-phase line in the United States (2300 volts and 7.5 miles) was installed in 1893 in California.³ In 1897, a 44,000-volt transmission line was built in Utah. In 1903, a 60,000-volt transmission line was energized in Mexico.⁴

In this early AC period, frequency had not been standardized. In 1891, the desirability of a standard frequency was recognized and 60 Hertz (Hz)⁵ was proposed. For many years 25, 50, and 60 Hz were standard frequencies in the United States. Much of the 25 Hz was used for railway electrification and has been retired over the years. The City of Los Angeles Department of Water and Power and the Southern California Edison Company both operated at 50 Hz, but converted to 60 Hz at the time that Hoover Dam power became available, with conversion completed in 1949. The Salt River Project was originally a 25 Hz system; most of it was converted to 60 Hz by the end of 1954 and the balance by the end of 1973.⁶

Over the first 90 years of its existence, until about 1970, electric consumption doubled about every ten years, a growth of about 7% per year. In the mid-1970s, due to increasing costs and serious national attention to energy conservation, the growth in the use of electricity dropped to almost zero. Today, growth is forecasted at about 1% per year until 2030.⁷

The growth in the utility industry has been related to technological improvements that have permitted larger generating units and larger transmission facilities to be built. In 1900, the largest turbine was rated at 1.5 MW. By 1930, the maximum size unit was 208 MW. This remained the largest size during the Depression and war years. By 1958, a unit as large as 335 MW was installed, and two years later in 1960, a unit of 450 MW was installed. In 1963, the maximum size unit was 650 MW and in 1965 the first 1000 MW unit was under construction. Unit sizes continued to grow, with generating units now as large as 1425 mW.⁸

Improved manufacturing techniques, better engineering, and improved materials allowed for an increase in transmission voltages in the United States to accompany the increases in generator size. The highest voltage operating in 1900 was 60 kV. In 1923, the first 220 kV facilities were installed. The industry started the construction of facilities at 345 kV in 1954, in 1964 500 kV was introduced, and 765 kV was put in operation in 1969 and remains as the highest transmission voltage in the United States.⁹ Larger generator systems required higher transmission voltage; higher transmission voltage made possible larger generators.

These technological improvements increased transmission and generation capacity at decreasing unit costs, accelerating the high degree of use of electricity in the United States. At the same time, the concentration of more capacity in single generating units, plants, and transmission lines had considerably increased the total investment required for such large projects, even though the cost per unit of electricity had come down.

Not all of the pioneering units at the next level of size and efficiency were successful. Sometimes, modifications had to be made after they were placed in operation; units had to be derated because the technology was not adequate to provide reliable service at the level intended. Each of these steps involved a risk of considerable magnitude to the utility, first to install a facility of a new type or a larger size or a higher transmission voltage. Creating new technologies required the investment of considerable capital that in some cases ended up being a penalty to the utility involved. To diversify these risks, companies began to jointly own power plants and transmission lines so that each company would have a smaller share and, thus, a smaller risk, in any one project. The sizes of generators and transmission voltage levels evolved together, as shown in Figure 1-1.¹⁰

A need for improved technology continues. New materials are being sought in order that new facilities can be more reliable and less costly. New technologies are required in order to minimize land use, water use, and the impact of the industry on the environment. The manufacturers of electrical equipment continue to expend considerable sums to improve the quality and cost of their products. Unfortunately, funding for such research by electric utilities through the Electric Power Research Institute (EPRI)¹¹ continues to decline.

1.3 THE DEVELOPMENT OF THE NATIONAL ELECTRIC POWER GRID¹²

Electric power must be produced at the instant it is used. Needed supplies cannot be produced in advance and stored for future use. At an early date, those providing electric power recognized that peak use for one system often occurred at a different time from peak use in other systems. They also recognized that equipment failures occurred at different times in various systems. Analyses showed significant economic benefits from interconnecting systems to provide mutual assistance; the investment required for generating capacity could be reduced and reliability could be improved. This lead to the development of local, then regional, and, subsequently, three transmission grids that covered the United States and parts of Canada. In addition, differences in the costs of producing electricity in the individual companies and regions of...

Table of contents

• COVER PAGE
• SERIES PAGE
• TITLE PAGE
• COPYRIGHT
• PREFACE TO THE SECOND EDITION
• ACKNOWLEDGMENTS
• CHAPTER 1: BENEFITS OF ELECTRIC POWER AND A HISTORY OF THE ELECTRIC POWER INDUSTRY
• CHAPTER 2: THE ELECTRIC POWER SYSTEM
• CHAPTER 3: BASIC ELECTRIC POWER CONCEPTS
• CHAPTER 4: ELECTRIC ENERGY CONSUMPTION
• CHAPTER 5: ELECTRIC POWER GENERATION AND CONCERNS ABOUT GREENHOUSE GASES
• CHAPTER 6: THE TECHNOLOGY OF THE ELECTRIC TRANSMISSION SYSTEM
• CHAPTER 7: DISTRIBUTION
• CHAPTER 8: ENERGY STORAGE AND OTHER NEW TECHNOLOGIES
• CHAPTER 9: RELIABILITY
• CHAPTER 10: THE PHYSICAL NETWORK: THE NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION (NERC) AND ITS STANDARDS
• CHAPTER 11: THE PHYSICAL NETWORK: OPERATION OF THE ELECTRIC BULK POWER SYSTEM
• CHAPTER 12: THE PHYSICAL NETWORK: PLANNING OF THE ELECTRIC BULK POWER SYSTEM
• CHAPTER 13: THE REGULATORY NETWORK: LEGISLATION
• CHAPTER 14: THE REGULATORY NETWORK: THE REGULATORS
• CHAPTER 15: THE INFORMATION, COMMUNICATION, AND CONTROL NETWORK AND SECURITY
• CHAPTER 16: THE FUEL AND ENERGY NETWORK
• CHAPTER 17: THE BUSINESS NETWORK: MARKET PARTICIPANTS
• CHAPTER 18: THE MONEY NETWORK: WHOLESALE MARKETS
• CHAPTER 19: THE PROFESSIONAL AND INDUSTRY ORGANIZATIONS
• INDEX