Eocnomic Operation of Distributed Power Systems Within an Electric Utility

The authors evaluate the economic operation of distributed power systems within regional synthetic utilities, analyzing the interactions with the utility of customers who can both buy and sell power. These analyses utilize a linked set of economic, financial and engineering models. SYSGEN, an electric utility system operating model, optimizes annual capacity utilization. SYSGEN provides the operation and maintenance data required in ERATES, the utility rate model. ERATES calculates a set of industrial and non-industrial utility rates based on operating and capital costs. The new rates are inputs to SOLOPS and SOLIPS, which are residential, commercial and industrial load simulation models that also compute the economic value of dispersed systems to their owners. The output of SOLOPS and SOLIPS provides load reduction data as input to the SYSGEN model. The modeling cycle allows the authors to analyze the impact of increasing amounts of dispersed power system installations on utility operating and capital costs, thereby analyzing the impact on utility buy and sell rates.