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Power utility function4/2/2023 PUCs and PSCs are independent regulatory agencies appointed by the state legislature. Electricity demand, supply, reserve margins, and the mix of electricity generating technologies is constantly monitored and managed by grid operators to ensure that everything runs smoothly.Įlectricity generators are owned by electric companies, or utilities, which are in turn regulated by the state’s Public Utility Commission (PUC) or the Public Service Commission (PSC). More variable technologies, such as wind and solar photovoltaics, are generally used whenever they are available, in large part because their fuel – sunlight and wind – is free.Īt any given time, there is also always a “reserve margin,” a specified amount of backup electricity generating capacity that is available to compensate for potential forecasting errors or unexpected power plant shutdowns. Other plants, such as natural-gas fired plants, can be ramped up very quickly, and are often used to meet peaks in demand. For example, certain types of power plants, such as coal and nuclear power plants, have little short-term flexibility in adjusting their electricity output it takes a long time to ramp up or down their electricity output. These technologies are also physically different, and are used and manipulated differently on the power grid as a result. The location of these electricity generators – and their distance from end users – varies widely. Our nation’s electricity grid consists of four major components, each of which is detailed below.Ī variety of facilities generate electricity, including coal- and natural gas-burning power plants, hydroelectric dams, nuclear power plants, wind turbines, and solar panels.
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