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DEREGULATION OF POWER SECTOR

-A BIBLIOGRAPHICAL SURVEY

Yog Raj Sood Narayana Prasad Padhy H. O. Gupta

Department of Electrical Engineering,


University of Roorkee, Roorkee
India 247 667
E.-mail: ysooddee@rurkiu.ernet.in

Abstract:

This paper gives a bibliographical survey and general backgrounds of research and development in the
field of deregulation of power sector based on large number of published research papers. More then 125
published articles and research papers from various sources like transactions, journals and conferences
have been analyzed and referred in this bibliography.
Keywords: deregulation, congestion, privatization, independent power producers, non-utility generation,
available transfer capability, transmission open access, unbundling, independent system operator.

1. INTRODUCTION concerned with the ownership and management of the


industry and the term de-regulation or privatization is
In deregulation environment, generation, transmission frequently used.
and distribution are independent activities, There is a
competition among generators for customers. Main The basic features of electricity supply industry (ESI)
benefits from the deregulation are, cheaper electricity, restructuring, which will be of interest to both general
efficient capacity expansion planning, cost reader and the specialist engineer, are as follows:
minimization, more choice and better service.
♦ To introduce competion into a hitherto
Since the mid-1980s the electrical power supply monopolistic industry.
industry around the word has experienced a period of ♦ In order to achieve this, to separate (vertical
rapid and irreversible change. The need for more unbundling) the functions of power generation,
efficiency in power production and delivery has led to a transmission, distribution and electricity supply to
restructuring of the power sectors in several countries consumers.
traditionally under control of federal and state ♦ To create several competing electricity generations
governments. The privatization process in Great companies (horizontal unbundling).
Britain[V(7)] is the best known example, followed by ♦ To recognize that the power transmission system is
others such as Spain, New Zeeland, Argentina and a natural monopoly and, accordingly, to make
Chile, Norway and Sweden [V(3)]. Even in countries special regulatory provisions in this respect.
with privately own utilities, such as the US [V(5), V(6), ♦ To allow consumers to exercise choice between
V(15), V(20)] , there has been a strong drive toward suppliers (generation companies) while still using
deregulation and a more intense participation of third the existing transmission facilities.
party generation. Other countries are also considering
the restructuring of their electricity power sector so as to Publications on topics, relevant to deregulation of power
introduce more competition among producers and to system, are far too numerous to exhaustively document
offer more choices for customers. In India [V(2), V(8), in a single paper. We have therefore chosen to limit the
V(10)], the deregulation process has just been started. resources from which this paper draws the references. In
Some of private power generating systems are under this bibliography collection of selected literature from,
constructions. Some rules and regulation in this regard IEEE transactions, leading technical journals and
has already been formulated. These changes are proceeding of conferences, etc. is included. Exceptions

1
were made to include publication in other resources if a Fundamentals and Applications in Systems Without
publication offered a significantly unique, technical Loopflow”, IEEE Trans. on Power Systems, Vol. 15, No.3,
August 2000, pp.923-929.
viewpoint on the relevant issue. The bibliography has [12]. Yu, C.W., David A.K., “Long-run Marginal Cost
been divided into the following sections. Evaluation of Transmission Capacity”, Proceedings of the
v Basic Concepts International Power Engineering Conference, 22-24 May
v Methodologies and Analysis 1997, Singapore, Vol.1, pp.425-430.
v Regulatory [13]. Yu, C.W., David A.K., “Security Related Long-run
Marginal Cost Analysis of Transmission Service”,
v Case Studies Proceedings of fourth International Conference on
v General Issues & future planning Advances in Power System Control, Operation and
Management (APSCOM-97), 11-14 November 1997,
Hong Kong, Vol.2, pp.463-468.
Although the content of many publications spanned two
[14]. Yu, C.W., David A.K., “Transmission Open Access and
or more of these sections, the desire to limit document Marginal Wheeling Cost Evaluation”, 3rd International
length required that publication be placed, in general, Conference on Advances in Power System Control,
only in the single most appropriate section. The Operation and Management, 9-11 November 1995 at Hong
publications are sorted alphabetically according to first Kong, Vol.1, pp.277-282.
author or publication resources.
4. METHODOLOGIES & ANALYSIS
3. BASIC CONCEPTS
This section contains those publications, which are
This section includes the literature, which contains basic related operational issues, methodologies, technical
ideas and definitions. analysis, costing, etc.

[1]. Hirano, D., Yamaji K., “A study on Fair Allocation of the


[1]. Alsac O. and Stott B., "Optimal load flow with steady
state security", IEEE Trans. on Power Apparatus and
Wheeling Costs among Multiple Users”, Trans. of the
Systems, Vol. PAS-93, No. 3, May/June 1974, pp745-751.
Institute of Electrical Engineers of Japan, Part B, Vol.118-
B, No. 9, September 1998, pp.990-997. [2]. Caramanis Michael C., Bohn Roger E., Schweppe Fred C.,
"The costs of wheeling and optimal Wheeling rates", IEEE
[2]. Hirano, D., Yamaji K., “A study on setting the Wheeling
Trans. on Power System, Vol. PWRS-1, No.1, February
Rate of Electricity on the Basis of Marginal Cost”,
1986, pp 63-73.
International Journal of Global Energy Issues, Vol.11,
No.1-4, 1998, pp. 195-202. [3]. Christie Richard D., Wollenberg Bruce F., Wangensteen
Ivar, "Transmission Management in the Deregulated
[3]. Ilic M.D., Yoon Y.T., Zobian, A., “Available Transmission
Environment", Proceedings of IEEE, Vol.88, No.2,
Capacity (ATC) and its Value under Open Access”, IEEE
February 2000, pp170-195.
Transactions on Power System, Vol.12, No.2, May 1997,
pp.636-645. [4]. Clayton J. Scott, Gibson A. Charles, “Interchange Costing
and Wheeling Loss Evaluation by Means of Incrementals”,
[4]. Lo K. L., Zhu S., “Wheeling and Marginal Wheeling
IEEE Trans. on Power Systems, Vol. 5, No. 3, October
Rates: Theory and Case Study Results”, Electric Power
1990, pp. 759-765.
System Research, Vol.27, No.1, May 1993, pp.11-26.
[5]. Lo K.L., Zhu S., “A theory for Pricing Wheeled Power”,
[5]. Fang R.S. & David A.k., "Transmission Congestion
Management in an Electricity Market" IEEE Trans. on
Electrical Power Systems Research, Vol. 28, No.3, January
Power Systems, Vol.14, No.3, August 1999, pp.877-883.
1994, pp.191-200.
[6]. Merrill Hyde M. and Bruce W. Erickson, “Wheeling Rates
[6]. Ferrero Roberto W. and Shahidehpour S. M., " Optimal
Power Transaction with network constraints in Deregulated
Based on Marginal-Cost Theory”, IEEE Trans. on Power
Systems", Electrical Machine and Power System, Vol.25,
Systems, Vol. 4, No. 4, October 1989, pp. 1445-1451.
Number 6, July 1997, pp661-675.
[7]. Rau N.S. , Necsulescu C. “A Model for Energy Exchanges
in Interconnected Power Systems”, IEEE Trans. on Power
[7]. Galiana Francisco D. and Phelan Mark, “Allocation of
Transmission Losses to Bilateral Contracts in a
Systems, Vol.4, No.3, August 1989, PP.1147-1153.
Competitive Environment”, IEEE Transactions on Power
[8]. Shiromohammadi Dariush, Rajagopalanet Chithra Alward
Systems, Vol.15, No.1, February 2000, pp.143-150.
Eugene R., Thomas Chifong L.," Cost of Transmission
Transaction : An Introduction", ” IEEE Trans. on Power
[8]. Galiana Francisco D., Ilic Marija, "A Mathematical
Framework for the analysis and management of Power
Systems, Vol. 6, No. 3, August 1991, pp. 1006-1016.
Transactions under Open Access", ", IEEE Trans. on
[9]. Wood A. J. and B. F. Wollenberg, “Power Generation,
Power Systems, Vol.13, No.2, May 1998, pp.681-687.
Operation and Control, second edition, New York, NY:
John Wiley and Sons 1996.
[9]. Gisin Boris S., Obessis Manos V, Mitsche James V.,
“Practical Methods for Transfer Limit Analysis in the
[10]. Wu Felix F., Ni Yixin, Wei Ping, “Power Transfer
Power Industry Deregulated Environment”, IEEE Trans.
Allocation for Open Access Using Graph Theory –
on Power Systems, Vol. 15, No.3, August 2000, pp.955-
Fundamentals and Applications in Systems Without
960.
Loopflow”, IEEE Trans. on Power Systems, Vol. 15, No.3,
August 2000, pp.923-929.
[10]. Hamoud G., “Assessment of Available Transfer Capability
of Transmission Systems”, IEEE Transactions on Power
[11]. Wu Felix F., Ni Yixin, Wei Ping, “Power Transfer
Systems, Vol.15, No.1, February 2000, pp.27-32.
Allocation for Open Access Using Graph Theory –

2
[11]. Hamoud G., “Feasibility Assessment of Simultaneous Analysis of Cost Recovery", IEEE Trans. on Power
Bilateral Transactions in a Deregulated Environment”, Systems, Vol.10, No.1, February 1995, pp.546-552.
IEEE Transactions on Power Systems, Vol.15, No.1, [27]. Rashidinejad M., Y.H. Song, M.H. Javidi, “Option Pricing
February 2000, pp.22-26. of Spinning Reserve in a Deregulated Electricity Market”,
[12]. Happ H.H., "Cost of Wheeling Methodologies", IEEE IEEE Power Engineering Review, July 2000, pp
Trans. on Power Systems, Vol. 9, No. 1, February 1994, [28]. Seethalekshmi K., Trivedi U.C., Ramamoorty M.,
pp147-156. “Locational Pricing under Transmission Constraints in an
[13]. Happ H.H., “Transmission Pricing Policies and Methods Interconnected Power System”, Proceedings of the
for Evaluating Wheeling Services”,Proceedinds of the Eleventh National Power System Conference (NPSC-
Amrican Power Conference, April 1994, pp.295-299. 2000), Vol.1, Dec. 20-22, 2000, IISc. Banglore (India),
[14]. Ito K., Yokoyama R., Gamou S., Matsumoto Y., "Analysis pp.197-202.
of Electric Wheeling on Cooperative Fuel Cell [29]. Shiromohammadi Dariush, Rajagopalanet Chithra Alward
Cogeneration Systems Installed in Multi-Areas", Journal of Eugene R., Thomas Chifong L.," Cost of Transmission
Energy Resources Technology, Vol. 116, September 1994, Transaction : An Introduction", ” IEEE Trans. on Power
pp.211-217. Systems, Vol. 6, No. 3, August 1991, pp. 1006-1016.
[15]. Kirschen Daniel S., Strbac Goran, Cumperayot Pariya, [30]. Sood Y.R. and Padhy N.P. “Method of Evaluating Cost of
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Based Method for Calculating Embedded, Incremental and Evaluating cost of Wheeling under Deregulated
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Power Systems, Vol.9, No.1, February1994, pp.272-278. India Seminar on Power System Recent Advances and
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Trans. on Power Systems, Vol. 9, No. 4, November 1994, [32]. Sood Yog Raj, Padhy Narayana Prasad, Gupta H. O.,
pp.1875-1879. “Analysis and Management of Wheeling Transactions
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Winter Meeting, January 28 – February 1, 2001, [33]. Sood Yog Raj, Verma S., Padhy Narayana Prasad, Gupta
Columbus, Ohio (U.S.A.). H.O., “Evolutionary Programming Based Algorithm for
[19]. Li Y.Z. and David A. K., "Optimal Multi-Area Wheeling", Selection of Wheeling Options”, IEEE Power Engineering
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1994, pp. 288-294. 2001, Columbus, Ohio (U.S.A.).
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Area Energy Interchange” IEEE IEEE Trans. on Power Transmission Cost to Wheeling Transactions by
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Catelli Armand, "Evaluation of Wheeling and Non-Utility Algorithm for Security Constrained Economic Dispatch in
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IEEE Trans. on Power Systems, Vol.7, No. 1, February the American Power Conference, 1-3 April 1997 at
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[23]. Nishimura Fuyuhiko, "Transaction Modes of Electric
Energy Exchange and there effects of Benefit Optimization 5. REGULATORY
and Allocation", Proceedings of International Conference
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Vol.1, November 21-23, 1995, pp.25-30. As mentioned early, the power transmission system is a
[24]. Nishimura Fuyuhiko, Tabors Richard D., Ilic Marija D., natural monopoly. So some special regulations are
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Silva J. B., "Chronological Probabilistic Costing and 1992: The Regulatory Agenda”, The Electricity Journal,
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Modeling", IEEE Trans. on Power Systems, Vol. 7, No. 2, [2]. Chown Graeme A., Coetzee Marita G., “Implementation of
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1136.

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[3]. Durham Robert A. and Durham Marcus O., “Electric Re- Indian Power System”, Proceedings of the Eleventh
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Wheeling a Summary of State Laws and Regulations” Brazil”, Proceedings of 1999 IEEE Transmission and
Washington, D.C., 1989. Distribution Conference, 11-16 April 1999, New Orleans,
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Wheeling and Dealing: Technological Considerations for “Restructuring & Reforms of Power Sector, in Andhra
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May 1989. Countries, CBIP, New Delhi, January 20-21, 2000, pp.15-
25.
[25]. Stein H., “Deregulation in the US Promises Good
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This section deals with those publications, which are [26]. Vaahedi Ebrahim, Poirier R. J., Necsulescu Cristina, Karas
related with restructuring or deregulation experience in A. N., "Benefits of Economy Transactions and Wheeling in
different countries. Canada", IEEE Trans. on Power Systems, Vol. 8, No. 3,
August1993, pp. 1299-1306.
[27]. Wang Lihua, Chen Jilai, Wang Jingyuan, Yin Qiyun,
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Utilities Policy, Vol.6, No.3, September 1997, pp.203-210. by Wheeling”, Power System Technology Vol.22, No.10,
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Systems Vol.20, No.5, June 1998, pp. 333-336. Cogeneration Market in Taxas”, Energy Policy, Vol.24,
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in Norway and Sweden Introduction”, IEEE Power [29]. Zinow B.M., “Competition in the Amrican Electricity
Engineering Review Vol.18, No.2, February 1998, pp.44- Supply Industry – Report on a Survey Trip”,
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in the Asia Pacific Region the Electricity Supply Industry
in Victoria, Australia”, proceedings of Symposium on
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New Delhi, January 20-21, 2000, pp.34-37.
[15]. Falcone F.C., “Electric Utility Industry Structure in the This section deals with publcations related with future
United States”, IEEE Power Engineering Review, Vol.12, planning, importance of the topic, critical comments and
No.4, April 1992, pp.13-17.
other general articals which may not be included in any
[16]. Gent M.R., “Electric Supply and Demand in the United
States: Next Ten Years”, IEEE Power Engineering of the above four sections.
Review, Vol.12, No.4, April 1992, P.10.
[17]. Ilic M.D., Yoon Y.T., Zobian, A., Paravalos M. E., [1]. Adsmson A.M., Garver, L.L., Maughn J.N., Palermo P.J.,
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in New England”, Utilities Policy, Vol.6, No.3, September Third Party Transmission Use”, IEEE Transactions on
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Management in Deregulated Power- A Case Study on an Viable Option?”, Indian Journal of Power and River Valley

4
Development, Vol.47, No.11-12, November-December [20]. Vojdani A.F., Imparato C.F., Saini N.K., Happ H.H.,
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[3]. Baran Mesut E., Banunarayanan, Garren Kenneth E., Systems, Vol. 11, No.1, February 1996, pp.41-51.
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Transactions”, IEEE Transactions on Power Systems, Market Power Monitoring Model for Restructuring
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[7]. Happ. H.H., “Selection of Methods for Evaluating the Cost
of Transmission Wheeling Services”, Proceedings of the This paper gives an overview of concept deregulation of
American Power Conference, 57th Annual Meeting, power sector with a bibliographical survey of relevant
Technology for a Competitive World, 18-20 April 1995,
Chicago, IL, USA, Vol.1, pp.606-611.
background, practical requirements, the historical
[8]. Hazan E., “Industry Transformation is under way events, the present state and techniques. It is based on
Worldwide [Electric Utilities]”, Transmission & many research articles published from last 20 years. The
Distribution World, Vol.49, No.5, May 1997, pp.45-46, citation listed in the this bibliography provide a
48-49, 51. representative sample of current engineering thinking
[9]. Hu Jiangyi, Huang Jiayu, Bian Beilei, “A Research about
Optimal Wheeling Scheme”, Automation of Electric Power
pertaining to the transfer of power under deregulated
Systems, Vol.22, No.12, December 1998, pp.34-36. environment of power industry. Periodic bibliographic
[10]. Hulleman V., Kerr W.A., “Access: a Global Issue in updates on this topic will be useful as the industry
Electricity Generation”, Energy Sources, Vol.20, No.3, continues to evolve.
April 1998, pp.241-257.
[11]. Lewis P., "Wheeling and Dealing [Power Transmission]",
IEE Review, Vol.42, Issue 5, September 1996, pp.196-198.
[12]. Lima J. W.,Marangon, Pereira M. V. F., Pereira J. L. R.,
"An Integrated Framework for Cost Allocation in a Multi- 9. BIOGRAPHIES
Owned Transmission System", IEEE Trans. on Power
Systems, Vol.10, No.2, May 1995, pp.971-977. Yog Raj Sood was born in Banur (Patiala), India. He
[13]. Nakashima T., Niimura T., Okada K., “Multiple- impact obtained his B.Sc degree from P.U. Chandigarh in 1980.
Assessment of Wheeling and Independent Power He received his B.E. degree in Electrical Engineering
Producers in a De-regulated Power System”, Proceedings
of IEEE Canadian Conference on Electrical and Computer
with “Honours” and M.E. in Power System from Punjab
Engineering, 24-28 May 1998, Waterloo, Ont., Canada, Engineering College
Vol.1, pp.89-92. Chandigarh (U.T.), in 1984 and
[14]. Scarfane Allen, "Short- Circuit Simulations Help Quantify 1987 respectively. He joined
Wheeling Flow", IEEE Computer applications in Power, Regional Engineering College
Vol.8, Issue 2, April 1995, pp.44-47.
[15]. Stein Gerhard, "In search of Competitive Electricity
Kurukshetra in 1986. He has
Supplies", Proceedings of Industrial and Commercial been working as Assistant
Power Systems Conference, May 1-5, 1994, pp.219-223. Professor in the Electrical
[16]. Stein Gerhard, "In search of Competitive Electricity Engineering Department of
Supplies", Proceedings of Industrial and Commercial
Regional Engineering College,
Power Systems Conference, May 1-5, 1994, pp.219-223.
[17]. Thomas J. Overbye, Gross George, Laufenberg Mark J., Hamirpur (H.P.) since 1991. He
Sauer Peter W., "Visualizing Power System Operations in has published a number of
an Open Market", IEEE Computer Applications in Power, research papers. He is doing his Ph.D. from University
Vol.10, Issue 1, January 1997, pp.53-58. of Roorkee,Roorkee (U.P).
[18]. Torre Teofio De La , Feltes James W., Roman Tomas
His research interests are in the area of computer
Gomez San , Merrill Hyde M., “Deregulation,
Privatization and Competition: Transmission Planning applications to power system, wheeling, deregulation,
under Uncertainty”, IEEE Transactions on Power Systems, open access transmission system, power network
Vol.14, No.2, May 1999, pp.460-465. optimization and non-conventional sources of energy.
[19]. Viswanath K., “Deregulation Concepts – Overview”,
proceedings of Symposium on Electricity Distribution in
the Developing Countries, CBIP, New Delhi, January 20-
21, 2000, pp.26-33.

5
Narayana Prasad Padhy obtained his degree of H.O.Gupta was born in Agra, India. He obtained his
engineering and Master of Engineering in 1990 and B.E. in Electrical
1993, respectively. In 1997, he obtained his Ph.D. Engineering from the
degree from Anna University, Government
Chennai, India. He joined Engineering College,
Birla Institute of Technology Jabalpur. He received
& Science as an Assistant his M.E. in systems
Professor in 1997. He is engineering and
presently with the faculty of operation research
Electrical Engineering, and Ph.D. from the
University of Roorkee, University of
Roorkee. He taught course in Roorkee, Roorkee,
Basic Electrical Engineering, in1975 and 1980
Power Systems and Artificial Intelligence. respectively. At present he is working as a professor
His field of interest is Artificial Intelligence in the Electrical Engineering Department of the
Applications to Power System Optimization Problem. University of Roorkee, Roorkee. He visited McMaster
University, Hamilton, Canada, from 1981 to 1983 as a
post-doctorate fellow.
His research interests are in the area of computer-
aided design, reliability engineering, power network
optimization and power transformers.

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