ECE 476 Power System Analysis Lecture 2: Power Industry History, Review of Phasors Prof. Tom Overbye Dept. of Electrical and Computer Engineering University of Illinois at Urbana-Champaign

Announcements Please read Chapters 1 and 2 HW 1 is 2.9, 22, 28, 32, 48; due Thursday 9/3 Will be turned in (for other homework we may have an in-class quiz) For Problem 2.32 you need to use the PowerWorld Software. You can download the software and cases at the below link; get version 18 (August 20, 2015)

History, cont’d 1896 – ac lines deliver electricity from hydro generation at Niagara Falls to Buffalo, 20 miles away; also 30kV line in Germany Early 1900’s – Private utilities supply all customers in area (city); recognized as a natural monopoly; states step in to begin regulation By 1920’s – Large interstate holding companies control most electricity systems 2

History, cont’d 1935 – Congress passes Public Utility Holding Company Act to establish national regulation, breaking up large interstate utilities (repealed 2005) This gave rise to electric utilities that only operated in one state 1935/6 – Rural Electrification Act brought electricity to rural areas 1930’s – Electric utilities established as vertical monopolies Frequency standardized in the 1930’s 3

Vertical Monopolies Within a particular geographic market, the electric utility had an exclusive franchise Generation Transmission Distribution Customer Service In return for this exclusive franchise, the utility had the obligation to serve all existing and future customers at rates determined jointly by utility and regulators It was a “cost plus” business 4

Vertical Monopolies Within its service territory each utility was the only game in town Neighboring utilities functioned more as colleagues than competitors Utilities gradually interconnected their systems so by 1970 transmission lines crisscrossed North America, with voltages up to 765 kV Economies of scale keep resulted in decreasing rates, so most every one was happy 5

Midwest Electric Grid in About Image Removed

History, cont’d ’s 1970’s brought inflation, increased fossil-fuel prices, calls for conservation and growing environmental concerns Increasing rates replaced decreasing ones As a result, U.S. Congress passed Public Utilities Regulator Policies Act (PURPA) in 1978, which mandated utilities must purchase power from independent generators located in their service territory (modified 2005) PURPA introduced some competition 7

PURPA and Renewables PURPA, through favorable contracts, caused the growth of a large amount of renewable energy in the 1980’s (about 12,000 MW of wind, geothermal, small scale hydro, biomass, and solar thermal) – These were known as “qualifying facilities” (QFs) – California added about 6000 MW of QF capacity during the 1980’s, including 1600 MW of wind, 2700 MW of geothermal, and 1200 MW of biomass – By the 1990’s the ten-year QFs contracts written at rates of $60/MWh in 1980’s, and they were no longer profitable at the $30/MWh 1990 values so many sites were retired or abandoned 8

Abandoned Wind Farm Need South Point in Hawaii Source: Prof. Sanders 9

History, cont’d – 1990’s & 2000’s Major opening of industry to competition occurred as a result of National Energy Policy Act of 1992 This act mandated that utilities provide “nondiscriminatory” access to the high voltage transmission Goal was to set up true competition in generation Result over the last few years has been a dramatic restructuring of electric utility industry (for better or worse!) Energy Bill 2005 repealed PUHCA; modified PURPA 10

Electricity Prices, Source: EIA, Annual Energy Review, 2010, Figure

Utility Restructuring Driven by significant regional variations in electric rates Goal of competition is to reduce rates through the introduction of competition Eventual goal is to allow consumers to choose their electricity supplier 12

State Variation in Electric Rates 13

The Goal: Customer Choice 14

The Result for California in 2000/1 OFF 15

The California-Enron Effect Source : RI AK electricity restructuring delayed restructuring no activity suspended restructuring WA OR NV CA ID MT WY UT AZ CO NM TX OK KS NE SD ND MN IA WI MO IL IN OH KY TN MS LA AL GA FL SC NC W VA PA NY VT ME MI NH MA CT NJ DE MD AR HI DC 16

The Rise of Natural Gas Generation Source: US EIA,

August 14 th, 2003 Blackout 18

My Favorite 8/14/2003 Blackout Cartoon! 19

The Smart Grid The term “Smart Grid” dates officially to the 2007 “Energy Independence and Security Act”, Title 13 (“Smart Grid”) Use of digital information and control techniques Dynamic grid optimization with cyber-security Deployment of distributed resources including Customer participation and smart appliances Integration of storage including PHEVs Development of interoperability standards 20

Smart Grid Perceptions (Some of Us Like the Term “Smarter”) 21

Renewable Portfolio Standards (September 2012) Source: / 22

Power System Modeling and Time Frames Much of class covers power system models. An important quote to keep in mind is – “Essentially, all models are wrong, but some are useful. However, the approximate nature of the model must always be borne in mind.” G.E.P. Box, N.R. Draper, Empirical Model-Building and Response Surfaces, Wiley, 1987, p Power systems covers many different time frames, with essentially no models valid for all of them Image: Sauer, P.W., M. A. Pai, Power System Dynamics and Stability, Stripes Publishing,

Review of Phasors Goal of phasor analysis is to simplify the analysis of constant frequency ac systems v(t) = V max cos(  t +  v ) i(t) = I max cos(  t +  I ) Root Mean Square (RMS) voltage of sinusoid 24

Phasor Representation 25

Phasor Representation, cont’d (Note: Some texts use “boldface” type for complex numbers, or “bars on the top”) 26

Advantages of Phasor Analysis (Note: Z is a complex number but not a phasor) 27

RL Circuit Example 28