System Issues Associated with Climate Change Ward Jewell Wichita State PSerc Research Workshop August 4-7, 2008

M21: Technical and Economic Implications of Greenhouse Gas Regulation in a Transmission Constrained Restructured Electricity Market

High gas price and normal system load: ($/MMBtu) Coal 1. 95, gas, 12 High gas price and normal system load: ($/MMBtu) Coal 1.95, gas, 12.74, oil 16.37

High gas price and heavy system load: ($/MMBtu) Coal 1. 95, gas 12 High gas price and heavy system load: ($/MMBtu) Coal 1.95, gas 12.74, oil 16.37 Will have generating costs and LMPs; first have to figure out where carbon payments go. Right now we are simulating a simple carbon tax with the tax money going elsewhere.

Once you hit gas limits, you have to look at other options : Renewables (true carbon footprint is unknown) Carbon footprint (negative) of electricity storage Carbon footprint (negative) of increased t&d efficiency Costs with CCS Customer efficiency and DSM Long-term generator expansion planning is needed

Other issues that need to be addressed: Hydro/wind availability effects on the system Higher temperatures, different load profiles, revised design standards including evs Markets: carbon tax vs. cap and trade Risk management with uncertainty in CC and regulations New capability: production costing/market simulations