Transcription of Reactive Power Staff Report
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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.
II. Background Reactive power is a critical component of operating an alternating current (AC) electricity system, and is required to control system …
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