multiple ownership of the transmission network. They are structural problems,
not physical problems. On the other hand, when a formerly nationalized grid is deregulated and turned into a single, privatized network there are problems, but they are not the problems that arise from the need to treat multiple transmission owners on a fair and equitable basis. Interutility transfers of energy are easily accomplished. Recall the computation of the area control error, ACE, in the chapter on generation control. A major component of ACE is the scheduled net interchange. To arrange for the sale of energy between two interconnected systems, the seller increases its net interchange by the amount of the sale, and the purchaser decreases its net interchange by a similar amount. (We ignore losses.) The AGC systems in the two utilities will adjust the total generation accordingly and the energy will be transferred from the selling system to the purchaser. With normal controls, the power will flow over the transmission network in a pattern determined by the loads, generation, control settings, and network impedances and configuration. (Notice that network ownership is not a factor.) The AGC scheme of Chapter 9 develops an autonomous, local control based upon ACE. It is predicated (implicitly, at least) on the existence of a well-defined control area that usually corresponds to the geographical and electrical boundaries of one or more utilities. Interchanges are presumed to be scheduled between utility control centers so that the net interchange schedule is well defined and relatively stable over time. With many participants engaged in transactions and, perhaps, private generators selling power to entities beyond the local control area, the interchange schedule may be subject to more frequent changes and some local loads may no longer be the primary responsibility of the local utility. AGC systems may have to become more complex with more information being supplied in real time on all local generation, load substations, and all transactions. New arrangements may be needed to assign responsibility for control actions and frequency regulation. Utilities have done these tasks in the past out of their own self-interest. A new incentive may be needed as the need for frequency and tie-line control becomes a marketplace concern; not just the concern of the utility. This chapter reviews the practices that have evolved in all-utility interchange arrangements. This leads to a brief discussion of power pools and other commercial arrangements designed to facilitate economic interchange. Many of the issues raised by the use of the transmission system are unresolved issues that await the full and mature development of new patterns for coordinating bulk power system operations and defining, packaging and pricing transmission services. We can only discuss possible outcomes. There are evolving market structures that include nonutility participants. These may include organizations that have generation resources, distributing utilities, and consumers, usually larger industrial firms. In these areas, we must venture into questions involving price. No transactions take place without involving prices, even those between utilities. Disputes naturally arise over what BLOG FIEE