SO » Topics » FREQUENCY REGULATION BY HYDRO FACILITIES

This excerpt taken from the SO 10-Q filed May 7, 2007.
FREQUENCY REGULATION BY HYDRO FACILITIES

 

Section 6.1 – Provision for Hydro Regulation Energy Losses: Because of energy losses from hydro regulation, the OPERATING COMPANIES supplying this service are deprived of hydro energy. To distribute equitably this loss of energy among the OPERATING COMPANIES in accordance with size of loads regulated and to compensate the OPERATING COMPANIES for regulating services rendered, adjustments in billing determinations are necessary. Hydro energy losses actually incurred by regulating OPERATING COMPANIES during each day are replaced by the Pool at zero cost, and the AGENT allocates such energy losses to all OPERATING COMPANIES in accordance with Peak-Period Load Ratios. Energy lost during high-flow periods is replaced during the period in

 

 

Issued by: Charles D. Long, IV, V.P., Fleet Operations & Trading

Effective: May 1, 2007

Issued on: May 18, 2007

 

Filed pursuant to order dated April 19, 2007 accepting compliance filing in Docket Nos. EL05-102, et al., Southern Company Services, Inc., 119 FERC ¶ 61,065 (2007).

 


 

Southern Company Services, Inc.

Original Sheet No. 39

Second Revised Rate Schedule FERC Number 138

 

 

which such losses occur, and energy lost from poorer efficiencies during normal and low-flow periods is replaced during the 14-hour peak period since hydro energy so lost could have been retained in storage and generated during this period.

 

Section 6.2 – Provision for Increases in Cost Due to Hydro Regulation: Payments are made to hydro regulating OPERATING COMPANIES for each hour of such regulation for the increase in operating and maintenance expenditures for governor mechanisms and water turbine parts, and these expenses are allocated to all OPERATING COMPANIES in accordance with Peak-Period Load Ratios. Such payments are calculated using actual expenses incurred through the last calendar year available, adjusted to current-year dollars, for the cost of labor, engineering and supervision, and materials and supplies in the following FERC Accounts: 544-10, Generator and Exciters; 544-20, Hydraulic Turbines and Settings; 544-40, Governors and Control Apparatus; and 544-50, Powerhouse Remote Control Equipment. The basis for hourly payments is the difference in the average hourly costs for regulating plants and non-regulating plants, expressed in the following formula:

Hourly Charge

=

[MCW - (MCWO/HWO) x MCWH]/HOR

Where:

 

 

MCW

=

Summation of costs for regulating plants.

 

 

 

MCWO

=

Summation of costs for non-regulating plants.

 

 

 

HWO

=

Summation of hours for non-regulating plants.

 

 

 

MCWH

=

Summation of hours for regulating plants.

 

 

 

HOR

=

Summation of hours in the regulating mode for regulating plants.

 

 

 

Issued by: Charles D. Long, IV, V.P., Fleet Operations & Trading

Effective: May 1, 2007

Issued on: May 18, 2007

 

Filed pursuant to order dated April 19, 2007 accepting compliance filing in Docket Nos. EL05-102, et al., Southern Company Services, Inc., 119 FERC ¶ 61,065 (2007).

 


 

Southern Company Services, Inc.

Original Sheet No. 40

Second Revised Rate Schedule FERC Number 138

 

 

The regulating OPERATING COMPANIES shall supply the AGENT an hourly statement of energy losses incurred in providing hydro regulating services. Such statement should include sufficient detail to permit review and verification by the AGENT.

 

Section 6.3 – Regulation by Pumped Storage Hydro Projects: It is understood that pumped storage hydro projects owned by the OPERATING COMPANIES may also be used for regulation of the integrated electric system. In such event, the hourly charge for such regulation will be the same charge derived under the formula contained in Section 6.2 hereof.

 

Section 6.4 – Provision for Increases in Cost Due to Hydro Scheduling: Because the use of hydro resources for tie-line load control and frequency regulation does not allow the hydro energy to be scheduled in the most cost effective manner, less economic gains are achieved than would have been if the hydro energy had been used to displace only the highest cost other energy sources. The difference in actual displacement costs represents the value of the lost economic opportunity by the owning OPERATING COMPANY by such use of hydro energy, or the costs of providing higher cost energy. The AGENT shall allocate such costs to all the OPERATING COMPANIES in accordance with Peak-Period Load Ratios.

 

 

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