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Reactive Power Staff Report

Payment for Reactive Power commission Staff Report AD14-7 April 22, 2014 The opinions and views expressed in this Staff Report do not necessarily represent those of the Federal Energy Regulatory commission , its Chairman, or individual Commissioners, and are not binding on the commission . 1 Payment for Reactive Power I. Introduction .. 2 II. Background .. 4 III. Current Methods Used to Pay for Reactive Power Capability .. 8 A. commission Precedent .. 8 B. OATT Schedule 2 .. 13 IV. Alternative Approaches to Payment for Reactive Power Capability .. 16 A. Potential Improvements to the AEP Methodology .. 17 B. Alternative Cost-Based Approaches to Reactive Power Compensation .. 19 C. Competitive, Market-Based Solicitation of Reactive Power .. 22 V. Conclusion .. 22 Appendix 1: Technical Characteristics of Generators .. 1 Appendix 2: Cost of Reactive Power Equipment .. 1 Appendix 3: Details of OATT Schedule 2 Rates for Selected Transmission Providers .. 1 2 I.

Payment for Reactive Power . Commission Staff Report . AD14-7 . April 22, 2014 . The opinions and views expressed in this staff report do not necessarily represent those of

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