Ancillary-service details: Dynamic scheduling

Dynamic scheduling (DS) is the electronic transfer from one control area to another of the time-varying electricity consumption associated with a load or the time-varying electricity production associated with a generator. Although electric utilities have been using this technique for at least two decades, its use is growing in popularity and importance. This growth is a consequence of the major changes under way in US bulk-power markets, in particular efforts to unbundle generation from transmission and to increase competition among generation providers. DS can promote competition and increase choices. It allows consumers to purchase certain services from entities outside their physical-host area and it allows generators to sell certain services to entities other than their physical host. These services include regulation (following minute-to-minute variations in load) and operating reserves, among others. Such an increase in the number of possible suppliers and customers should encourage innovation and reduce the costs and prices of providing electricity services. The purpose of the project reported here was to collect and analyze data on utility experiences with DS. Chapter 2 provides additional details and examples of the definitions of DS. Chapter 3 explains why DS might be an attractive service that customers and generators, as well as transmission providers, might wan to use. Chapter 4 presents some of the many current DS examples the authors uncovered in their interviews. Chapter 5 discusses the costs and cost-effectiveness of DS. Chapter 6 explains what they believe can and cannot be electronically moved from one control area to another, primarily in terms of the six ancillary services that FERC defined in Order 888. Chapter 7 discusses the need for additional research on DS.