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POWER POOLS

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interchange and to arrange capacity sales. This enables brokers to assist in

minimizing costs for spinning reserves and coordinate unit commitments in
interconnected systems.

10.7.2 Allocating Pool Savings

All methods of allocating the savings achieved by a central pool dispatch are
based on the premise that no pool member should have higher generation
production expenses than it could achieve by dispatching its own generation
to meet its own load.
We saw previously in the pool broker system that one of the ways to allocate
pool savings is simply to split them in proportion each systems net interchange
during the interval. In the broker method of matching buyers and sellers based
on their incremental and decremental costs, calculations of savings are relatively
easy to make since the agreed incremental costs and amounts of energy must
be transmitted to the broker at the start. When a central economic dispatch is
used, it is easier to act as if the power were sold to the pool by the selling
systems and then bought from the pool by the buying systems. In addition,
allowances may be made for the fact that one systems transmission system is
being used more than others in carrying out the pool transactions.
There are two general types of allocation schemes that have been used in
U.S. pool control centers. One, illustrated in Example 10E, may be performed
in a real-time mode with cost and savings allocations made periodically using
the incremental and decremental costs of the systems. In this scheme, power is
sold to and purchased from the pool and participants accounts are updated
currently. In the other approach, illustrated in Example 10F, the allocation of
costs and savings is done after the fact using total production costs. Example
10E shows a scheme using incremental costs similar to one used by a U S . pool
made up of several member systems.
EXAMPLE 10E
Assume that the same four systems as given in Example 10D were scheduled
to transact energy by a central dispatching scheme. Also, assume that 10% of
the gross systems savings was to be set aside to compensate those systems that
provided transmission facilities to the pool. The first table shows the calculation
of the net system savings.
Utilities
Selling
Energy

BLOG FIEE

Incremental
Cost ( e / M W h )

MWh
for Sale

Sellers Total
Increase in Cost (p)

25

30

100
100

2500

3000

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