ECEN 615

Methods of Electric Power

Systems Analysis
Lecture 2: Power Systems Overview

Prof. Tom Overbye

Dept. of Electrical and Computer Engineering
Texas A&M University
overbye@tamu.edu
Announcements

• Start reading Chapters 1 to 3 from the book (mostly

background material)
• We’ll be using PowerWorld Simulator fairly
extensively in this class, both the educational and
professional versions
• Download the free 42 bus educational versions of
PowerWorld Simulator at
https://www.powerworld.com/gloveroverbyesarma

1
 Electric Frequencies and Residential
Voltages Worldwide

Image Source:
en.wikipedia.org/wiki/Mains_electricity_by_country#/media/File:World_Map_of_Mains_Voltages_and_Frequencies,_Detailed.svg 2
Historical Electric Utility Organization

• Traditionally electric utilities were vertical

monopolies; within a particular geographic market,
they had an exclusive franchise
– This has changed in many places around the country

In return for this exclusive

franchise, the utility had the
obligation to serve all
existing and future customers
at rates determined jointly by
utility and regulators.

3
Generation

• Large plants have predominated, up to 1500 MW

• Natural Gas (40%) and coal (21%) are most common
sources, followed by nuclear (20%), wind (7.6%),
hydro (6.6%), and solar (2.7%)
– Wood is 1.0%, geothermal 0.4%
Coal was at least 50% of the total up to 2007

• New construction mostly wind, solar and natural gas

(with wind and solar energy costs now quite low)

Sources are by energy (not capacity), 5/2019-4/2020; source US EIA

4
US Electricity Generation

Source: EIA Monthly Energy Review, July 2020

5
US Generator Capacity Additions
Natural gas and
wind generation
additions in the last
decade dwarfed all
other technologies,
but with solar rapidly
growing. The gas
generation, and low
natural gas prices
were partially
responsible
for the recent
decrease in carbon
dioxide emissions
Sources: www.eia.gov/todayinenergy/detail.php?id=25432 6
New Generation May 2020 to April 2021

Sources: EIA Electricity Monthly, May 2020

7
The World: Energy Consumption by
Source

Source: EIA, International Energy Outlook 2018

8
US Wind Capacity by State

Total wind
capacity
is now 107
GW
(compared
to a total US
capacity of
about 1000
GW)
Source: AWEA 1st Quarter 2020 Market Report
9
Texas Electricity Sources

• In 2018 the Texas top five fuel sources for electricity

were Natural Gas (50%), Coal (23%), Wind (15.7%),
Nuclear (8.7%), Solar (0.6%), other (the rest)
– Average retail price is 8.48 cents/kWh
• In 2018 the California top five fuel sources for
electricity were Natural Gas (46%), Solar (13.8), Hydro
(13.5%), Nuclear (9.3%), Wind (7.2%), Geo (5.9%)
– Average retail price is 16.58 cents/kWh
• In 2018 Kentucky was 75% coal, while Washington was
69% hydro; highest retails costs are 29.1 cents/kWh in
Hawaii, 19.3 in Alaska and 18.4 in Connnecticut
Source: www.eia.gov/electricity/state
Loads

• Can range in size from less than one watt to 10’s of

MW.
• Loads are usually aggregated.
• The aggregate load changes with time, with strong
daily, weekly and seasonal cycles.

ComEd Yearly Load

11
Example: PJM Weekly
Summer Load Variation, July 2013

12
Example Daily Load Variation:
Very Location Specific

13
Transmission and Distribution

• Goal is to move electric power from generation to

load with low losses.
• Less losses at higher voltages (S=VI* and I2R losses),
but more difficult to insulate.
• Typical high voltage transmission voltages are 765,
500, 345, 230, 161, 138 and 69 kV.
• Lower voltage lines are used for distribution (12.4 or
13.8 kV).
• Typical losses are about 3 to 5% in transmission and
10 to 15% in the distribution system.

14
Transmission & Distribution

• Transmission • Distribution
– networked connections – radial connections
– power can be supplied from – power moves in one direction
multiple sources only
– typically higher voltages, – typically lower voltages, below
above 100 kV 100 kV
– mostly overhead, with – the source of most black-outs,
some underground in urban but these are local
areas – Most new construction is
– Often source of large-scale underground, especially in
blackouts suburban and urban locations

15
Three Phase Transmission Line

16
Transmission Lines and the
Elements

Quebec Ice Storm

Ike in Beaumont, Tx
17
Transformers

• Transformers provide an easily means for changing ac

voltage levels
– Power flow through transformers is bi-directional
• Heating is a major concern that can quickly lead to
loss of transformer life (and occasionally explosions!)
• High voltage transformers (say 230 kV and up) are
large, heavy, and difficult to replace

18
A 230/115 kV Transformer

19
Residential Distribution
Transformers
• Residential single phase electric service uses a center
tapped transformer to provide 240/120 volt service; a
separate ground is used for safety

20
Per Unit Calculations

• A key problem in analyzing power systems is the

large number of transformers.
– It would be very difficult to continually have to refer
impedances to the different sides of the transformers
• This problem is avoided by a normalization of all
variables.
• This normalization is known as per unit analysis
actual quantity
quantity in per unit =
base value of quantity

21
Components Join Together at a Bus

22
Energy Economics

• Electric generating technologies involve a tradeoff

between fixed costs (costs to build them) and
operating costs
• Nuclear and solar high fixed costs, but low operating
costs (though cost of solar has decreased substantially
recently)
• Natural gas/oil have low fixed costs but can have higher
operating costs (dependent upon fuel prices)
• Coal, wind, hydro are in between
• Also the units capacity factor is important to
determining ultimate cost of electricity

23
Estimated Energy Costs for New
Generation, 2019 Edition

Source: www.eia.gov/outlooks/aeo/pdf/electricity_generation.pdf (February 2019)

24
Estimated Energy Costs for New
Generation, 2020 Edition

25
Natural Gas Prices 1997 to 2020

Marginal cost for natural gas fired electricity price

in $/MWh is about 7-10 times gas price; Henry Hub is a gas
pipeline located in Erath, Louisiana.
Source: http://www.eia.gov/dnav/ng/hist/rngwhhdW.htm 26
Coal Prices had Fallen But Are Now
Back to Values from Five Years Ago

Current prices
are about the
same as in
Sept. 2017

BTU content per pound varies between about 8000

and 15,000 Btu/lb, giving costs of around $1 to 2/Mbtu
Source: eia.gov/coal
27
 Average Cost of Solar Systems, 2019

For the cost

for a 10 kW
system is
$2.98 per watt
before the
tax credit and
$ 20.86 after

Source news.energysage.com/how-much-does-the-average-solar-panel-installation-cost-in-the-u-s/ 28
Brief History of Electric Power

• First real practical uses of electricity began with the

telegraph (1860's) and then arc lighting in the 1870’s
• Early 1880’s – Edison introduced Pearl Street dc
system in Manhattan supplying 59 customers
• 1884 – Sprague produces practical dc motor
• 1885 – invention of transformer
• Mid 1880’s – Westinghouse/Tesla introduce rival ac
system
• Late 1880’s – Tesla invents ac induction motor
• 1893 – Three-phase transmission line at 2.3 kV
29
History, cont’d

• 1896 – ac lines deliver electricity from hydro

generation at Niagara Falls to Buffalo, 20 miles
away; also 30kV line in Germany
• Early 1900’s – Private utilities supply all customers
in area (city); recognized as a natural monopoly;
states step in to begin regulation
• By 1920’s – Large interstate holding companies
control most electricity systems

30
History, cont’d

• 1935 – Congress passes Public Utility Holding

Company Act to establish national regulation, breaking
up large interstate utilities (repealed 2005)
• This gave rise to electric utilities that only operated in one state
• 1935/6 – Rural Electrification Act brought electricity
to rural areas
• 1930’s – Electric utilities established as vertical
monopolies
• Frequency standardized in the 1930’s

31
Vertical Monopolies

• Within a particular geographic market, the electric

utility had an exclusive franchise
Generation In return for this exclusive
franchise, the utility had the
Transmission obligation to serve all
existing and future customers
at rates determined jointly
Distribution
by utility and regulators
Customer Service
It was a “cost plus” business

32
Vertical Monopolies

• Within its service territory each utility was the only

game in town
• Neighboring utilities functioned more as colleagues
than competitors
• Utilities gradually interconnected their systems so
by 1970 transmission lines crisscrossed North
America, with voltages up to 765 kV
• Economies of scale keep resulted in decreasing
rates, so most every one was happy

33
History, cont’d -- 1970’s

• 1970’s brought inflation, increased fossil-fuel

prices, calls for conservation and growing
environmental concerns
• Increasing rates replaced decreasing ones
• As a result, U.S. Congress passed Public Utilities
Regulator Policies Act (PURPA) in 1978, which
mandated utilities must purchase power from
independent generators located in their service
territory (modified 2005)
• PURPA introduced some competition

34
History, cont’d – 1990’s & 2000’s

• Major opening of industry to competition occurred as

a result of National Energy Policy Act of 1992
• This act mandated that utilities provide
“nondiscriminatory” access to the high voltage
transmission
• Goal was to set up true competition in generation
• Result over the last few years has been a dramatic
restructuring of electric utility industry (for better or
worse!)
• Energy Bill 2005 repealed PUHCA; modified PURPA

35
Electricity Prices, 1960-2014

Source: EIA
36
Utility Restructuring

• Driven by significant regional variations in electric

rates
• Goal of competition is to reduce rates through the
introduction of competition
• Eventual goal is to allow consumers to choose their
electricity supplier

37
State Variation in Electric Rates

38
The Rise of Natural Gas Generation

Source: US EIA, 2016

39
August 14th, 2003 Blackout

Above image from energy.gov, August 14, 2003 Blackout

Final Report

40
My Favorite 8/14/2003 Blackout
Cartoon!

41
My Favorite Blackout Hoax Photo

42
345 kV+ Transmission Growth at a
Glance (From Jay Caspary)

43
345 kV+ Transmission Growth at a
Glance (From Jay Caspary)

44
345 kV+ Transmission Growth at a
Glance (From Jay Caspary)

45
345 kV+ Transmission Growth at a
Glance (From Jay Caspary)

46
The Smart Grid

• The term “Smart Grid” dates officially to the 2007

“Energy Independence and Security Act”, Title 13
(“Smart Grid”)
• Use of digital information and control techniques
• Dynamic grid optimization with cyber-security
• Deployment of distributed resources including
• Customer participation and smart appliances
• Integration of storage including PHEVs
• Development of interoperability standards

47
Smart Grid Perceptions (Some of Us
Like the Term “Smarter”)

48
 Renewable Portfolio Standards
(August 2016)

TX is now
10 GW
by 2025
which we’ve
met (i.e., 29
GW of wind
now); CA
is 60% by
2030 and
100% by
2045
Image source: http://www.dsireusa.org/

See also www.ncsl.org/research/energy/renewable-portfolio-standards.aspx 49

Growth in Solar PV and Wind

Source: www.eia.gov/electricity/monthly/update/
50
Wind now surpasses nuclear and
hydro

Source: www.eia.gov/electricity/monthly/update/ (April 2020)

51
Slowing Electric Load Growth
Much of
the slowing
load growth
is due to
distributed
generation,
such as
solar PV,
which sits
on the
customer
side of the
meter
Source: EIA Monthly Energy Review, July 2019
52
 Except in Texas!

The left graph is peak demand, the right energy

ERCOT set a new peak electric load of 74.5 GW on 8/12/19,
surpassing the 73.3 GW record from 2018; total energy in
2017 was 357 billion kWh
Source: www.ercot.com/gridinfo/load/forecast 53
Interconnected Power System
Basic Characteristics
• Three – phase AC systems:
– generation and transmission equipment is usually three
phase
– industrial loads are three phase
– residential and commercial loads are single phase and
distributed equally among the phases; consequently, a
balanced three – phase system results
• Synchronous machines generate electricity
– Exceptions: some wind is induction generators; solar PV
• Interconnection transmits power over a wider region
with subsystems operating at different voltage levels

54