### EPA W EBINAR 

### J UNE 

### 11, 2015 

### Gil Bindewald Eric Rollison 

## Electricity 101

# SECTION 1: 

# OVERVIEW

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### Electricity’s Role in Society Electricity plays a vital role to our economy and national security. Most Americans can not describe what it is or where it comes from. Yet, we know the impact that electricity plays on nearly all aspects of our lives: national security; health and welfare; communications; finance; transportation; food and water supply; heating, cooling, and lighting; computers and electronics; commercial enterprise; and even entertainment and leisure.

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### Electric System Must Meet 

### Evolving Expectations

Electrify transportation sector to reduce dependence on imported oil Integration of diverse set of generation resources
Maximize benefits of end
- use efficiency and storage

Meet environmental constraints Emerging Expectations Affordable Power Reliable Power Secure Power Historical Expectations

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### Challenge Ahead is Complex

• Over 3000 utilities with diverse business models

– Investor

- Owned Utilities

– Electric Cooperatives

– Public Power/Municipal Utilities

– Federal Government



### • Limited demand growth

• Increased self generation (changing revenue stream)



### • Diverse markets and regulatory frameworks

• Increased operational complexity

– Changing generation & load



### – Cyber/physical concerns

– Weather events Source: North American Electric Reliability Corporation (NERC)

5• Investor - Owned Utilities
-- 192

– Account for a significant portion of net generation (38%), transmission (80%), and distribution (50%)

• Publicly
- Owned Utilities and Cooperatives
-- ~2,900

– Account for 15% of net generation, 12% of transmission, and nearly 50% of the nation's electric distribution lines

• Independent Power Producers
-- ~2,800

– Account for 40% of net generation

• Federal Government

– Owns 9 power agencies (including 4 Power Marketing Administrations and TVA) with 7% of net generation and 8% of transmission

• Electric Power Marketers – 211

– Accounts for approximately 19% of sales to consumers

Sources: EIA , Electric Power Annual 2013, March 2 015

EIA , Annual Energy Review 2011, Chapter 8 (Electricity ) 2014
- 15 Annual Directory & Statistical Report, American Public Power Association NRECA Co
- op Facts & Figures, www.nreca.coop 

### Electric Industry

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### Electric Power Systems

Source: How Stuff Works Four major components:

Load : Consumes electric power Generation : Produces electric power Transmission (and Distribution) : Transmits electric power from generation to load Control Centers : Coordinate generation and transmission assets for economy and reliability
Components are joined together at “buses” or substations. Electric power systems involve the management of interconnected components needed to generate and deliver electric power to customers economically, reliably, and safely.

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### Load



## • Load (from a utility perspective) typically begins at the meter.

• The meter measures a customer’s energy use.

8Source: TVA (2007) 

### Generation

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### Substation

Source: OSHA 

### • Changes voltage from one level to

another



### • Connects electric generating plants to the system

• Makes interconnections between the electric systems of more than one utility

• Switches transmission and distribution circuits into and out of the grid system

• Regulates voltage to compensate for system voltage changes

• Measures electric power qualities 

### flowing in the circuit, and connect communication signals
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## Size and scale 

## Operation is fundamentally different

– Transmission system: operated actively

– Distribution system: operated passively 

## Failures lead to different consequences

– Transmission system: widespread blackout or large block load shed



### – Distributed system: impacted power quality, local area
Transmission/ Subtransmission Voltage Levels 69kV up to 765kV AC; 800kV HVDC Distribution Voltage Levels Medium Voltage 4.16 kV

– 46kV Low Voltage 480 V 120/240 V (single

- phase) 

### Major Differences between 

### Transmission and Distribution Systems

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# SECTION 2: 

# SYSTEM OPERATIONS

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### Key Section Objectives



## • Illustrate how load and generation change over 

## time

• Characterize who is involved in the operation 

## of the electric system

• Describe how the electric system is operated today, and the complexity of the task



## • Identify some of the emerging operational challenges

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### Load is not constant

1 2 3 4 5 6 Maximum kW usage

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2 4 8 12 10 12 6 2 4 8 12 10 Noon P.M. A.M. Midnight Midnight

Average Demand 1.8 kW Peak Demand 6.5 kW for 15 minutes Sleeping Breakfast Preparation Morning Activities Lunchtime Dinner Preparation Afternoon Activities Dinnertime Evening Activities

Hypothetical Power Usage for an American Household

Typical hotel Typical office building Typical theater AM PM AM PM AM PM

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### Aggregate Load

PJM Winter Load (Hypothetical Example) Peak: 37,000 MW Valley: 26,000 MW LF Range: 11,000 MW Max ramp rate between 5 and 6 AM: 3450 MW/hr or 57.5 MW/min 31,450 TYPICAL WINTER LOAD

TYPICAL SUMMER LOAD

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### Markets / Regulatory Structure



## • U.S. has a blend of structured pool

- based markets and traditional vertically integrated regulated areas

• State regulators are accountable for distribution and intrastate transmission rates

• FERC is responsible for interstate transmission

Source: ferc.gov North American Regional Transmission Organizations
Regional Transmission Organizations (RTOs): Independent entities, established by FERC Order 2000 issued in December 1999, that control and operate regional electric transmission grids free of any discriminatory practices.

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### • Bilateral contract

– a buyer and seller negotiate directly and sign a two
- party contract to trade electric power.

• Outside the RTOs/ISOs

— mainly the Southeast and the West outside of California

— wholesale power trades occur through bilateral contracts.

• Within the RTOs/ISOs, there are both bilateral trading and “ organized ” markets that pool all sellers and buyers. Bilateral vs. Organized Markets

Definitions: RTO = Regional Transmission Organization ISO = Independent System Operator 17

### Economic Dispatch

Source: e
- education.psu.edu Building the Economic Dispatch 

### Economic Dispatch means “the operation of generation facilities to produce energy at the lowest cost to reliably serve consumers, recognizing any operational limits of generation and transmission 

### facilities”

-- Energy Policy Act 2005 , Sec. 1234 (b)

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### Economic Dispatch Limits



## Factors that affect and dictate grid constraints :

– Generation and transmission facility conditions and availability

• Examples: whether a unit or line is out of service for maintenance or must operate under reduced limits



### – Line capacities under different power flows and loading

• Thermal limitations

– transmission and distribution wires have limited capacity; h eat can cause damage and excess sag.

• Angular Stability

– disturbances on the system (switching, contingencies, etc) may cause the system to become unstable and lose synchronism

• Voltage Stability

– high demand/loading on transmission can, with insufficient reactive power compensation, cause voltages to become unstable and difficult to control



### – The availability and capabilities of other grid facilities to buffer and 

### manage line loadings and voltages

• Examples: circuit breakers, series or shunt reactive devices, transformers, and other equipment and protection schemes

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### System Operations

• Assuring system reliability per NERC standards at different system levels

– Local

– Balancing area

– Interconnection



### • Scheduling, dispatch, and control

• Transmission congestion management

• Measurements to monitor the system

– State estimation

– Contingency analysis

– Load and generation forecasting



### • Additional responsibilities

– Ancillary services (and markets)

– Security coordination

– Emergency response and coordination Source: TVA

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### Ancillary Services

Normal Conditions

• Regulating reserves

• Load following reserves 

### Event Conditions

• Contingency

• Ramping 

### Other Services

• Voltage Control

• Black Start
Acknowledgement: PNNL 

### Ancillary Services: services additional to provision of energy to support power system reliability

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### Operational Challenges

• The future generation resource mix is unknown

• The variability and uncertainty of renewable energy sources (e.g., wind and solar power) require new ways to operate the power system (including the use 

### of storage, natural gas, demand response, inter

- hour scheduling; market impacts)

• Load profiles are uncertain as on

- site renewable energy resources, demand 

### response technologies, and EVs/PEVs are introduced to distribution systems

• Valuation of ancillary services is evolving

• Boundary seams are critical for effective integration



### • New concerns are continually emerging

Definitions: EV = electric vehicle PEV = plug

- in electric vehicle 22

### Variable Energy Resources

Sources: EIA from Bonneville Power Administration data, California ISO [W. Booth, EIA]; Renewables Watch (CAISO) Actual Demand and Wind Output for the Bonneville Power

Administration, June 22
- 23, 2013 Actual Output of Renewable Generators in the California ISO, March 2, 2014

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### Availability of Smart Grid Data Enhances Flexibility

“ Smart Grid” data sources enable real

- time precision in operations and control to dynamically optimize grid operations to adapt to changing 

### conditions

– Real

- time data from distribution automation and smart meter systems will significantly advance real

- time operations of distribution systems and enable customer engagement through demand response, efficiency etc.

– Time

- synchronized phasor data, linked with advanced computation and visualization, enable advances in state estimation, real

- time contingency analysis, and real

- time monitoring of dynamic (oscillatory) behaviors in the system. Customer Systems Customer Systems Customer Systems Customer Systems Customer Systems Advance Metering

Infrastructure Electric

Distribution Systems Electric

Transmission Systems

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### Energy Storage 

## Energy storage would allow us to change the way we operate electricity systems

• Responds instantaneously for peak shaving and bridge outages

• And makes renewables dispatchable Energy storage provides energy when it is needed just as transmission provides energy where it is needed

Source: DOE, Dr. Imre Gyuk ; Sandia National Laboratories 25

### Section Recap

• Operating Characteristics of Electricity

– Demand varies considerably over the year, week and day.

– Electricity storage is limited and expensive.

– Electricity is produced the moment it is consumed.

– Utilities rely on reserve capacity for unexpected loss of supply.



### • Utilities dispatch resources to follow demand based primarily on lowest cost to consumers, while recognizing system limits.

– Electricity market structures reflect regional diversity

– There is a difference between cost and price of electricity.

– Cost to generate electricity varies minute

- to
- minute.



### • Opportunities for innovation and transformation exist to address emerging challenges

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# SECTION 3: 

# SYSTEM PLANNING

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### Key Section Objectives



## • Who develops system plans

• What is included in system plans

• When are system plans developed

• How are system plans are developed

• What are current system planning practices

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### Who Develops System Plans



# • Within the Bulk Power System, the Planning 

# Authority coordinates and integrates within its boundaries:

– Transmission facility and service plans,



## – R esource plans, and

– Protection system plans



# • A Planning Authority Area is not constrained



# • As of May 2015, there are approximately 74 entities which perform the Planning Authority function within the US

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### Key Elements of the Electric Power System Plans

Source: How Stuff Works 

## Three Major Components

Transmission facility and service plans Whether elements are in or out of service and what the facilities future 

### schedules are planned Resource Plans Future plans for generation and 

### resources and their availability to deliver power to the grid Protection System Plans How protection system elements are configured on the system and what are their activation points
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### What is included in 

### Future System Plans

The Vogtle Unit 3 cooling tower | U.S. Department of Energy , Photo courtesy of Georgia Power Company. 

##  New Generation Resources  New Transmission Infrastructure

• Substations

• Transmission Lines 

##  Upgraded Generation Units  Upgraded Transmission 

## Infrastructure  Forecasts of generation retirements  Technical System Requirements

• Thermal requirements

• Voltage Requirements Southern Company

– Kemper County | U.S. Department of Energy

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### When are System 

### Plans Developed


# System Plans are developed on a defined cycle, typically occurring on an annual basis.

• The system plan development cycle is based 

## upon a number of external factors and regional needs

• Check with your local Planning Authority to 

## understand their cycle

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### How are System Plans 

### Developed Planning Authority identifies system attributes and scenarios for study Stakeholders review system attributes and scenarios and provide comments

Planning Authority simulates future scenarios

Planning Authority identifies necessary system reinforcements for reliability Planning Authority files plan with appropriate regulatory authorities Stakeholders review and comment on filed plan Regulatory authorities approve final plan 

## Each planning cycle starts with the development of a new plan and is continuous.

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### • Forecasting the availability of resources

– Traditional resources

– Renewables

– Hybrid and New Tech



### • Forecasting future loads

– Economic Growth

– Population growth

– Other attributes



### • Incorporating policy mandates

– Loss of Load Expectation

– Reserve Margin

– Renewables and other mandates 

### What are Current S ystem 

### Planning Approaches

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### Section Recap

• Who develops system plans

– System plans on the bulk system are overseen by the NERC Registered Planning Coordinator



### • What is included in system plans

– System plans typically include forecasts of future electricity demand and future resource availability. Plans attempt to manage uncertainty



### • When are system plans developed

– System plans are typically formulated on a yearly basis by Planning Coordinators



### • How are system plans are developed

– System plans are typically developed through an open, technical process



### • What are current system planning practices

– Practices include resource forecasts, load forecast scenarios, and loss of load (contingencies) scenarios
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# SECTION 4: RESOURCES FOR MORE INFORMATION

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### Federal Agencies 

## Federal Agencies involved in Electricity Systems Analysis

□ U.S. Department of Energy □ Federal Energy Regulatory Commission □ Nuclear Regulatory Commission □ Energy Information Administration 

### □ Environmental Protection Agency □ U.S. Department of Interior □ U.S. Department of Defense □ U.S. Army Corps of Engineers □ U.S. Department of Agriculture □ U.S. State Department

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### Data Collections



## Helpful Data Resources

– Form EIA - 411 Coordinated Bulk Power Supply and Demand Program Report

– Form EIA - 860 Annual Electric Generator Report

– Form EIA - 861 Annual Electric Power Industry Report



### – Form FERC - 714 Annual Electric Balancing Authority Area and Planning Area Report

– Form OE - 417 Electric Emergency Incident and Disturbance Report

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### Additional Federal Resources



## U.S. Department of Energy

– Quadrennial Energy Review

– National Electric Transmission Congestion Study 

## Federal Energy Regulatory Commission

– Energy Infrastructure Update ( Monthly )

– Market and Reliability Assessment ( Semi

- Annual) 

## Energy Information Administration

– Short

- Term Energy Outlook



### – Annual Energy Outlook

– Electric Power Monthly

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# Thank you

Presenters: Gil Bindewald Office of Electricity Delivery and Energy Reliability U.S. Department of Energy gilbert.bindewald@hq.doe.gov Eric Rollison Office of Electricity Delivery and Energy Reliability U.S. Department of Energy eric.rollison@hq.doe.gov

Electricity Policy Technical Assistance Program: Caitlin Callaghan Office of Electricity Delivery and Energy Reliability U.S. Department of Energy caitlin.callaghan@hq.doe.gov
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