Alberta's Electricity Regime Overhaul: Implications of the Current and Evolving Regulatory Environment for Power Generation

The rapid development of wind power that the United States has experienced over the last several years has been coupled with a growing concern that wind development will require substantial additions to the nation's transmission infrastructure. Transmission is particularly important for wind power due to the locational dependence of wind resources, the relatively low capacity factor of wind plants, and the mismatch between the short lead time to build a new wind project and the longer lead time often needed to plan, permit, and construct transmission. It is clear that institutional issues related to transmission planning, siting, and cost allocation will pose major obstacles to accelerated wind power deployment, but also of concern is the potential cost of this infrastructure build out. Simply put, how much extra cost will society bear to deliver wind power to load centers? Without an answer to this question, there can be no consensus on whether or not the cost of developing transmission for wind will be a major barrier to further wind deployment, or whether the institutional barriers to transmission expansion are likely to be of more immediate concern. In this report, we review a sample of 40 detailed transmission studies that have included wind power. These studies cover a broad geographic area, and were completed from 2001-2008. Our primary goal in reviewing these studies is to develop a better understanding of the transmission costs needed to access growing quantities of wind generation. A secondary goal is to gain a better appreciation of the differences in transmission planning approaches in order to identify those methodologies that seem most able to estimate the incremental transmission costs associated with wind development. Finally, we hope that the resulting dataset and discussion might be used to inform the assumptions, methods, and results of higher-level assessment models that are sometimes used to estimate the cost of wind deployment (e.g. NEMS and WinDS). The authors and general location of the 40 detailed transmission studies included in our review are illustrated in Figure ES-1. As discussed in the body of the report, these studies vary considerably in scope, authorship, objectives, methodology, and tools. Though we recognize this diversity and are cognizant that comparisons among these studies are therefore somewhat inappropriate, we nonetheless emphasize such simple comparisons in this report. We do so in order to improve our understanding of the range of transmission costs needed to access greater quantities of wind, and to highlight some of the drivers of those costs. In so doing, we gloss over many important details and differences among the studies in our sample. In emphasizing simple comparisons, our analysis focuses primarily on the unit cost of transmission implied by each of the studies. The unit cost of transmission for wind in $/kW terms on a capacity-weighted basis is estimated by simply dividing the total transmission cost in a study by the total amount of incremental generation capacity (wind and non-wind) modeled in that study. In so doing, this metric assumes that within any individual study all incremental generation capacity imposes transmission costs in proportion to its nameplate capacity rating. The limitations to this approach are described in some detail in the body of the report.

This paper proposes a novel approach to optimizing the structure of the electricity market by mitigating market power through the use of forward contracts. The IEEE 30 node test system is used as a case study for the paper, which employs nodal pricing and a Cournot model with recursive optimization. The findings show that forward contracts can reduce market power and lead to a more competitive market structure with fewer participants. The study emphasizes the importance of successor companies having a well-balanced mix of generation technology. Six players with a different generational mix are optimal in the constrained nodal pricing scenario, while five players with slightly different mixes are optimal in the Cournot case study. These findings have important implications for policymakers and industry stakeholders involved in the design and implementation of efficient electricity markets. Market power can be reduced by using forward contracts and establishing an appropriate number of market participants, resulting in more efficient and sustainable electricity markets. Overall, this study provides useful insights for improving electricity market structures and increasing competition in the electricity sector.

A well-designed transmission cost allocation (TCA) scheme is able to reflect each consumer’s contributions to the actual usage of transmission assets, thereby generating fair price signals to guide consumers in making investments. In this paper, an optimal planning strategy and a model for distributed energy resources (DERs) are formulated, considering structural TCA. In the proposed TCA scheme, the transmission costs are identified according to the actual usage of transmission assets under different conditions. The effects of DERs on TCA are considered. Because the DERs have a fast-response capability at each time slot, DERs are able to provide power support for the bulk power system in an emergency and thus can efficiently reduce the peak loads of the system and relieve the congestion of transmission assets. This grid-friendly manner allows lower transmission prices, thereby decreasing the DER operators’ transmission costs. Therefore, by strategically investing in and operating DERs, consumers can reduce their electricity energy cost and transmission cost and maximize long-term revenue. To address the uncertainties of load growth and distributed energy fluctuation, stochastic programming is adopted. Restricted by the non-analytical mapping between transmission prices and planning strategies, an algorithm is presented to iteratively solve the problem. Case studies based on a 3-bus test system and IEEE 118-bus system with various DERs verify the effectiveness of the proposed scheme.

The lockdown associated with COVID-19 caused a sizeable downward shock to electricity demand in the Philippines. Although coal is usually classified as a “baseload” fuel, it ironically bore the brunt of adjustment in the generation mix. The resulting upward pressure on retail prices was offset by force majeure contract provisions that allowed distribution utilities to pay lower fixed charges on their power purchase agreements. Coal generators thus suffered the double whammy of lower sales at lower rates. While existing coal plants will contribute to affordability during the recovery, plants in the planning stage may be reevaluated in light of the falling cost of wind and solar power and the low costs of dealing with intermittency when the percentage of intermittent generation is low. The Department of Energy’s “technology neutral” policy towards the generation mix is sound so long as least cost is interpreted to include the social costs of pollution. Some changes in renewable energy policy are indicated.

In response to the novel requirements that restructured power markets place upon transmission planning, a method for assessing the economic benefits of transmission upgrades has been adopted by the California Independent System Operator (CAISO). Economic effects considered include reductions in the cost of constructing and operating power plants along with changes in market prices. The methodology accounts for how transmission upgrades mitigate market power by increasing the size of a supplier's geographic market. The methodology has five key principles: consideration of multiple perspectives (consumers, generators, transmission operators, and society at large); full network representation using a linearized DC loadflow; market-based pricing, accounting for strategic behavior by generators; modeling of uncertainty, including the value of transmission as insurance against extreme events; and recognition of how supply, demand-side, and transmission resources can substitute for each other. An application to a possible expansion of Path 26 in California is summarized. The application shows how a substantial portion of the benefits of transmission reinforcements can derive from their mitigation of market power.

A new benefit-based transmission cost allocation scheme based on capacity usage differentiation

This article examines the latest attempt of the United States' regulatory agency, the Federal Energy Regulatory Commission (FERC), to promote transmission expansion through the transmission planning and cost allocation principles contained in its recently issued Order No. 1000. It finds the level of detail contained in the order's cost allocation principles to be insufficient to achieve FERC's goals. It argues that the order does provide important principles for both transmission planning and expansion, though. It thus presents a cost allocation methodology which channels the order's strengths. Specifically, the methodology obtains an estimate of the benefits of a project and aligns the costs and benefits of the project accordingly. (JEL K23, Q48)

اهداف: پایش تغییرات کاربری‌ها و درک پویایی آن در یک حوضۀ آبخیز، از جایگاه خاصی در مدیریت پایدار آن حوضه برخوردار است. هدف تحقیق حاضر، استفاده از سنجش از دور و GIS جهت تهیۀ نقشۀ تغییرات و شناسایی انتقالات کاربری اراضی و پوشش زمین با به‌کارگیری ماتریس انتقال و تصاویر ماهوارۀ لندست در حوضۀ آبخیز دریاچۀ ارومیه می‌باشد. روش: جهت انجام تحقیق، از تصاویر ماهوارۀ لندست در دورۀ زمانی 2015 ـ 1988 استفاده گردید. بدین‌منظور پس از انجام پیش‌پردازش‌های موردنظر، جهت انجام طبقه‌بندی از روش‌های ماشین‌بردار پشتیبان و روشیءگرا استفاده و سپس اعتبارسنجی گردیدند. همچنین جهت برآورد میزان انتقالات و دیگر ویژگی‌های حوضۀ آبخیز دریاچۀ ارومیه، ابتدا ماتریس انتقالی استخراج شده و سپس طبقه‌بندی شئ‌گرا بین دوره‌های زمانی 2015ـ1988 ارائه شد. سپس با استفاده از فرمول‌های موردنظر، میزان پایداری، افزایش، کاهش، تغییرات کل، تغییرات خالص و مبادلۀ همزمان کاربری‌های اراضی و پوشش زمین مشخص گردید. یافته‌ها/ نتایج: پس از ارزیابی صحت، صحت کلی برای نقشه‌های حاصل از ماشین بردار پشتیبان و روش شئ‌گرا به‌ترتیب برابر با 94 و 92 درصد و مقدار کاپای آنها به‌ترتیب 92 و 89 برآورد شد که نشان‌دهندۀ برتری روش شئ‌گرا در مقایسه با روش ماشین بردار پشتیبان است. در کل، هر دو روش طبقه‌بندی توانستند صحت قابل‌قبولی برای نقشه‌های کاربری اراضی و پوشش زمین ارائه دهند. نتایج حاصل از انتقالات نشان داد به‌طور میانگین، 59 درصد از چهرۀ زمین در حوضۀ آبخیز دریاچۀ ارومیه در فاصلۀ زمانی 2015ـ 1988 پایداری پوشش داشته است، که بیشترین میزان این تداوم براساس مقدار این کاربری در فاصلۀ زمانی 2015ـ1988 مربوطه به مناطق مسکونی می-باشد. حدود 14 درصد از سطح حوزۀ آبخیز دریاچۀ ارومیه به‌صورت تبادل همزمان بوده است. همچنین سطوح آبی حوضۀ آبخیز دریاچۀ ارومیه در دورۀ زمانی فوق، بیشترین ازدست‌دادگی و کمترین تبادل همزمان را تجربه کرده است. نتیجه‌گیری: حوضۀ آبخیز دریاچۀ ارومیه در این فاصلۀ زمانی (2015ـ1988) تغییرات و انتقالات شدیدی را تجربه کرده است، تاجایی‌که تنها 59 درصد از چهرۀ زمین، ثابت مانده و قسمت‌های دیگر، انواعی از انتقال‌ها را تجربه کرده‌اند. همچنین سطوح آبی و سپس مراتع، بیشترین آسیب-پذیری را تجربه کرده‌اند که نشان از افزایش اراضی فاقد پوشش و اراضی زراعی (کشاورزی) می-باشد. این تجزیه‌وتحلیل ما را به سنجش و تجسم میزان انتقالات عمدۀ LULC درجهت برنامه‌ریزی آیندۀ حوضۀ آبخیز دریاچۀ ارومیه توصیه می‌کند.

Independent system operators (ISOs) plan the electric power transmission system over large geographic areas. A wide range of modeling tools is available, including production cost planning models, large-scale optimization models, and reliability models. Each model addresses different aspects of the optimal planning process. This paper reviews the current approach for transmission planning and investment in a competitive environment and presents a modeling approach for regional planning and investment in a competitive generation environment. The framework proposed can be used in an auction to award investment contracts or as a part of a more detailed policy analysis. The result yields the set of transmission projects that have the highest expected benefits, while also representing generic generation expansions.

Growth management is a policy tool to limit unorganized urban growth and to preserve environmentally sensitive lands, high quality agricultural and conserve the urban natural environment. The state of Florida has adopted a comprehensive state growth management legislation to prepare growth management plans for guiding local development. However, the degree of land use regulation in relation to the growth management policy is different for each local government. This study raises a research question about why the difference of restrictiveness of land use regulation exists among the local government in the same state. One might assume that this is a result of discretionary power in a local government. However, it cannot be enough of a reason. Therefore, this study will investigate the factors that influence the restrictiveness of local land use regulation by regressing independent variables in the category of three main variables and a dependent variable. By analyzing with an ordinal logit model, the form of government, population, the population increase and the property tax are the variables that influence the degree of more stringent land use regulation in counties. Moreover, the marginal effects after the ordered login analysis of land use regulation shows interest group variables that indicates a clear pattern to influence the choice of stringent land use regulations of the counties. This study supports the argument that social and economic attributes are important in growth management. Furthermore, it provides an important policy implication that the full understanding of land use policy at the local level should be accompanied with variations of local entities in terms of social, economic, and physical environments in order to deliver appropriate growth management.

We describe the historical and current distributions and genetic status of westslope cutthroat trout Oncorhynchus clarkii lewisii (WCT) throughout its range in the western United States using data and expert opinion provided by fish managers. Westslope cutthroat trout historically occupied 90,800 km and currently occupy 54,600 km; however, these are probably underestimates due to the large-scale (1:100,000) mapping we used. Genetic analyses found no evidence of genetic introgression in 768 samples (58% of samples tested), but the numbers of individuals tested per sample were variable and sample sites were not randomly selected. Approximately 42% of the stream length occupied by WCT is protected by stringent land use restrictions in national parks (2%), wilderness areas (19%), and roadless areas (21%). A total of 563 WCT populations (39,355 km) are being managed as “conservation populations,” and while most (457, or 81%) conservation populations were relatively small, isolated populations, large and interconnected metapopulations occupied much more stream length (34,820 km, or 88%). While conservation populations were distributed throughout the historical range (occupying 67 of 70 historically occupied basins), they were much denser at the core than at the fringes. From the information provided we determined that conserving isolated populations (for their genetic integrity and isolation from nonnative competitors and disease) and metapopulations (for their diverse life histories and resistance to demographic extinction) is reasonable. We conclude that while the distribution of WCT has declined dramatically from historical levels, as a subspecies WCT are not currently at imminent risk of extinction because (1) they are still widely distributed, especially in areas protected by stringent land use restrictions; (2) many populations are isolated by physical barriers from invasion by nonnative fish and disease; and (3) the active conservation of many populations is occurring.

Transmission cost allocation among market participants in restructuring of power industry has become an important task in view of bilateral transaction framework. This paper presents a usage based methodology of transmission cost allocation in deregulated power system under open access. A new methodology for allocating transmission cost to wheeling transactions considering Zbus and contractual obligations made among suppliers and buyers is proposed in this paper. The usage coefficients are defined by taking the quantum of bilateral agreements made in the electricity markets so as to obtain fair utilization of transmission network. Accordingly this new approach calculates the utilization of each line by the generators and loads considering their contract obligations in the open access environment. The transmission costs are allocated among the transactions by using the converged load flow solution in this methodology. In this paper the allocation of the transmission costs mainly emphasize both technical and measure of ‘extent use’ of transmission resources. The proposed method has been illustrated with the help of a sample 6 bus (test) system, IEEE 118 bus system and comparison is done with analytical method for six bus system.

Public goods in the United States are largely funded and delivered at the local level. Local public goods are valuable, but their production requires overcoming several collective action problems including coordinating supply and minimizing congestion, free-riding, and peer effects. Land use regulations, promulgated by local governments, allow communities to solve the collective action problems inherent in the provision of local public goods and maintenance of property values. A consequence of these efforts is residential segregation between cities along racial lines. I provide evidence that more stringent land use regulations are supported by whiter communities and that they preserve racial homogeneity. First, I show that cities that were whiter than their metropolitan area in 1970 are more likely to have restrictive land use patterns in 2006. Then, relying on Federal Fair Housing Act lawsuits to generate changes in land use policy, I show that restrictive land use helps to explain metropolitan area segregation patterns over time. Finally, I draw on precinct level initiative elections from several California cities to show that whiter neighborhoods are more supportive of restricting development. These results strongly suggest that even facially race-neutral land use policies have contributed to racial segregation.

This study examines hydropower commercialization in Panama through a B2B energy marketing lens, emphasizing how value perception, hydrological risk and financial stability shape institutional buyers’ preferences between Power Purchase Agreements (PPAs), regulated tenders and the spot market. Unlike conventional technical analyses, this research treats commercialization mechanisms as market products with distinct value propositions, comparable to a commercial portfolio: PPAs as premium contracts offering stability, tenders as competitive credibility instruments, and spot sales as high-risk, high-opportunity positions for buyers with greater tolerance to volatility. A descriptive–analytical, non-experimental methodology was applied, supported by regulatory review (ASEP), operational records from the National Dispatch Center, and historical price and generation time-series from 2015–2024. Results indicate that PPAs behave as a low-volatility financial products preferred by institutions seeking predictable long-term cash flows. Regulated tenders reinforce transparency and comparability but offer reduced contractual flexibility. Meanwhile, the spot market operates as a speculative product whose value rises significantly under wet conditions yet exposes producers to major revenue losses during dry periods. Based on these findings, a strategic positioning matrix is proposed to segment buyers by risk tolerance and guide commercial decision-making in hydropower sales. This approach reframes energy from a purely operational commodity into a marketed product, whose success depends on perception, differentiation, and strategic value communication. The study contributes a marketing-oriented framework for commercial planning, risk segmentation and buyer–contract alignment in Panama’s hydroelectric market.

Evaluating land use plans under uncertainty