Name: Class:

Martes, Hulyo 24, 2018 Total Possible Marks: 74

FINAL EXAM | POWER SYSTEM ECONOMICS
Please use a pencil to complete the test. Print your name on the Name line
above. Read the instructions for each section carefully. When you have
completed the test, place your test face down on your desk and raise your hand.

1. It is a centralized venue where buyers and sellers engage in the 13. The high voltage backbone system of interconnected transmission
trading of electricity as a commodity. lines, substations and related facilities, located in each of luzon,
A. TransCo C. DOE Visayas and Mindanao or as may otherwise be determined by the
B. WESM D. NGCP ERC in accordance with the Section 45 of EPIRA.
2. WESM was created by what republic act. A. 550 KV C. 115 KV
A. 9135 C. 7920 B. 230 KV D. GRID
B. 1872 D. 9136 14. A measure taken by the system operator when the grid is in extreme
3. A price cap imposed during market suspension and intervention to be state condition as established in the Philippine Grid Code arising from
used for settlements threat to system security, force majeure or emergency.
A. Suspended C. Administered A. Preventive C. Control
B. Provisionary D. Administrative B. Administrative D. Intervention
4. A contract between parties, the net effect of which is that a defined 15. This is the marginal value of the objective function at each bus at the
quantity of electricity has been sold by one party to another, at a solution of the optimization problem.
particular node. A. Locational Marginal C. Location Marginal
A. Commercial C. Bilateral Price Value
B. Administrative D. Spot contract B. Marginal Value Price D. Location Value
5. The process of scheduling by the market operator and issuing direct 16. The amount of energy consumed in a defined period via node.
instructions to electric power industry participants by the system A. Load C. Load Pattern
operator to achieve the economic operation of the transmission B. Load Forecast D. Marginal Plant
system while maintaining its quality, stability, reliability and security. 17. Has the same meaning as demand forecast.
A. central dispatch C. administrative A. Load C. Load Pattern
B. dispatch process dispatch B. Load Forecast D. Marginal Plant
D. direct dispatch 18. The generating unit or plant whose price offer corresponds to the
6. A limitation on the capability of any combination of network elements, system marginal price for a given trading interval.
loads generating units or ancillary service providers such that it is, or A. Load C. Load Pattern
deemed by SO to be, unacceptable to adopt the pattern of transfer, B. Load Forecast D. Marginal Plant
consumption, generation or production of electrical power or other 19. A generation offer for a particular trading interval of a particular
services that would be most desirable if the limitation were removed. trading day in the current market horizon, whether formed from a
A. constraint C. constraint dispatch standing offer in accordance with WESM Rules...
acceptance D. constraint A. System offer C. Network Offer
B. constraint violation B. Bilateral Offer D. Market Offer
7. Contains the definition of credible contingencies for power system 20. A generic term covering prices for energy and reserve.
security analysis. It includes a list of pre-defined outage scenarios A. ex-ante price C. admistered price
that are most likely to occur in the system in faulty conditions. B. ex-post price D. market price
A. fault list C. contingency list
B. contingent list D. fault security 21. Responsible in the dispatch of generating units at real time.
A. MO C. TP
8. A load which is able to respond to dispatch instructions and so may B. SO D. GENCO
be treated as a scheduled load in the dispatch process.
A. dispatchable load C. scheduled dispatch 22. Which agency maintains the Market Network Model?
B. emergency dispatch D. direct load A. MO C. TP
B. SO D. GENCO
9. The Department of Energy was created by which Republic Act?
A. 1955 C. 9136 23. Submission of bids and offers to WESM consistent with WESM
B. 7638 D. 9134 timetable is responsibility of?
A. TP C. MO
10. The benefit that will be received by consumers in the economic B. SO D. TransCo
dispatch optimization.
A. gain C. benefit gain 24. Ex ante prices are based on what?
B. economic benefit D. economic gain A. Hour Ahead Load C. Nodal settlement
Forecast D. Day Ahead load
11. Any person or entity requiring the supply and delivery of electricity B. Actual metered forecast
for its own use. generation/load
A. End user C. Customer
B. Load D. Load customer 25. Ex post prices are based on what?
A. Hour Ahead Load C. Nodal settlement
12. Energy Regulatory Commission was created under what act? Forecast D. Day Ahead load
A. 9135 C. 1745 B. Actual metered forecast
B. 9136 D. 1555 generation/load

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26. Produce and sell electrical energy 36. In this forecasting approach, project the quantity and use of each type
A. Utilities C. DisCos of electricity using equipment and combine them to make a forecast.
B. Gencos D. MO Adjust these figures to account for anticipated changes in equipment
27. Typically runs a computer system that matches the bids and offers that efficiency.
buyers and sellers of electrical energy have submitted. It also takes A. Trend Analysis D. Combined Analysis
care of the settlement of the accepted bids and offers. This means that B. Econometric E. Sum of the Utilities
it forwards payments from buyers to sellers following delivery of the modeling
energy. C. End Use Analysis
A. TransCo C. SO 37. In this forecasting approach, for each customer class, estimate the
B. GenCo D. MO relationship between electriciy consumption and the major variables
28. It is the governmental body responsible for ensuring the fair and that affect consumption. Project future values for these variables.
efficient operation of the electricity sector. It determines or approves Solve the equations for future values of consumption.
the rules of the electricity market and investigates suspected cases of A. Trend Analysis D. Combined Analysis
abuse of market power. B. Econometric E. Sum of the Utilities
A. ERC C. DOE modeling
B. NGCP D. NAPOCOR C. End Use Analysis
29. Model of competition wherein the case where the utility integrates the 38. It is a process of predicting market condition using historical data.
generation, transmission and distribution of electricity and/or A. Load Forecasting C. Price Forecasting
generation and transmission are handled by one utility, which sells B. Forecasting D. Hour Ahead
the energy to local monopoly distribution companies. This model does Forecast
not preclude bilateral energy trades between utilities operating in 39. Refers to the system of allowing any qualifed Person the use of
different geographical areas. transmission, and/or Distribution System and associated facilities
A. Purchasing Agency C. Monopoly subject to the payment of transmission and/or distribution retail
B. Wholesale competion D. Retail Competition wheeling rates duly approved by the ERC.
30. The ultimate form of competitive electricity market in which all A. Retail Competition C. Open Retail
consumers can choose their supplier. Because of the transaction B. Open Access D. Competition Access
costs, only the largest consumers choose to purchase energy directly 40. Synchronized generating capacity that is allocated to stabilize the
on the wholesale market. system Frequency and to cover the loss or failure of a Synchronized
A. Purchasing Agency C. Monopoly Generating Unit or a transmission line or the power import from a
B. Wholesale competion D. Retail Competition single circuit interconnection.
31. In this model, no central organization is responsible for the provision A. Primary reserve C. Tertiary reserve
of electrical energy. Instead, discos purchase the electrical energy B. Secondary reserve D. Minute Reserve
consumed by their customers directly from generating companies. 41. Who shall provide the necessary information and references for the
A. Purchasing Agency C. Monopoly implementation and subsequent revisions and validation the market
B. Wholesale competion D. Retail Competition manual?
32. _____________________ means the entity responsible for providing A. market operator C. trading participants
regulated transmission services who is currently the National Grid B. system operator D. network service
Corporation of the Philippines (NGCP) who has been awarded the providers
concession contract to operate and maintain the Philippines’ 42. Who shall be responsible for the development, validation,
transmission grid. For this guideline, the Regulated Transmission maintenance in the market information website, and revision of this
Entity shall also mean the entity responsible for the expansion needs market manual in coordination with WESM participants?
of the transmission system through efficient and effective grid planning. A. market operator C. trading participants
A. Price Determination C. Regulated B. system operator D. network service
Methodology (PDM) Transmission Entity providers
B. Price Substitution D. Regulatory Reset
Methodology (PSM) Process 43. Who shall provide the necessary information and references for the
implementation and subsequent revisions and validation of the market
33. In this forecasting approach, estimate electricity consumption in a base manual?
year plus an additional amount for each year plus an additional A. market operator C. trading participants
amount for each year after the base year. B. system operator D. network service
A. Trend Analysis D. Combined Analysis providers
B. Econometric E. Sum of the Utilities
modeling Who shall provide the necessary information for the implementation of
C. End Use Analysis market manual?
A. market operator C. trading participants
34. In this load forecasting approach, econometric and end use analysis B. system operator D. network service
are joined to produced a forecast. providers
A. Trend Analysis D. Combined Analysis
B. Econometric E. Sum of the Utilities 44. It is a centralized venue where buyers and sellers engage in the
modeling trading of electricity as a commodity.
C. End Use Analysis A. NGCP C. NAPOCOR
B. WESM D. TransCo
35. In this forecasting approach, the individual utility forecasts are added.
45. __________ refers to the provision of electricity to a Contestable
A. Trend Analysis D. Combined Analysis
Market by Suppliers through Open Access.
B. Econometric E. Sum of the Utilities
A. Retail C. Open access
modeling
B. Spot Market D. Cooptimization
C. End Use Analysis

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46. 57. The demands at specific hour of the same day are: 3400, 3500,
47. How long should the electricity transmission system planning horizon 4200, 4500, 4322. Using simple moving average, determine the
be as specified by the RTWR? load forecast for the next week.
A. 15 C. 14 A. 3984.4 C. 3968.2
B. 13 D. 12 B. 2645.3 D. 3698.2
48. What is the primary objective of regulation? 58. The demands at specific hour of the same day are: 3400, 5500,
A. to regulate loading C. to ensure 4900, 4500, 3322. Using simple moving average, determine the
and electricity usage sustainability and load forecast for the next week.
B. to provide efficiency of A. 4324.4 C. 3984.2
maintenance transmission B. 4352.8 D. 4290.5
services 59. There are three key features of the operation of the spot market.
D. None of the above These are (1) process, (2) price determination process, (3) financial
49. _______________ is prepared annually by the Regulated settlements process. What feature is for scheduling generation and
Transmission Entity to be submitted for approval to the DOE for balancing supply and demand at all times?
integration into the Power Development Program (PDP) and the A. process C. financial settlements
Philippine Energy Plan (PEP). B. price determination D. None of the above
A. Transmission C. Transmission 60. There are three key features of the operation of the spot market.
Maintenance Plan Provision Plan These are (1) process, (2) price determination process, (3) financial
B. Transmission D. None of the above settlements process. What feature is in which customers pay for
Development Plan electricity purchases and generators receive payments for electricity
50. The forecast __________ application is prepared once every produced?
regulatory reset. A. process C. financial settlements
A. ERC C. EPIRA B. price determination D. None of the above
B. TDP D. CAPEX 61. There are three key features of the operation of the spot market.
51. Section 5.2.1 of the PGC states that the Regulated Transmission These are (1) process, (2) price determination process, (3) financial
Entity shall have lead responsibility for grid planning including the settlements process. What feature sets the marginal value of all
following except: electricity produced and consumed by time and location at all nodes?
A. Analyzing the impact C. Identifying A. process C. financial settlements
of the connection of congestion problems B. price determination D. None of the above
new facilities that may result in 62. It refers to the total power consumed in a power system or grid
B. Planning expansion increased outages inclusive of the relevant loses produced durign the delivery of power.
of the grid to ensure or raise the cost of It is also the total power generated in the grid.
its adequacy to meet service significantly. A. demand C. final demand
forecasted demand D. None of the above B. demand forecast forecast
and the connection D. forecast area
of new generating 63. It referst to the demand projection for a particular forecast area.
plant A. demand C. final demand
52. The first step to efficient forecasting is ? B. demand forecast forecast
A. identifying the most C. Identifying the factors D. forecast area
appropriate of prediction 64. It refers to the sum of the Net Load Forecasts plus the losses in a
forecasting technique D. None of the above forecast area.
B. identifying the future A. demand C. final demand
casualties B. demand forecast forecast
53. Which of the following is NOT a parameter in selecting the most D. forecast area
suitable forecasting model? 65. It refers to a grid in the Philippine power system where demand
A. forecast time frame C. accuracy and cost of forecast will be applied. Currently, each grid in the Philippines is
B. data availability the forecast designated as a Forecast Area, namely the Luzon, the Visayas and
D. None of the above the Mindanao grids.
54. Type of WESM membership wherein a qualified person or entity that A. demand C. final demand
wishes to trade directly in the WESM must register as a Generator or B. demand forecast forecast
Customer. D. forecast area
A. Direct C. Intending 66. The Philippine Electricity Market Board of Directors is a ______ -
B. Indirect D. Super man body.
55. Type of WESM membership defined as any person or entity which A. 11 C. 7
can demonstrate to the market operator of its bonifide intent to B. 15 D. 17
commence within a reasonable timefram an activity which would 67. Which enforces the WESM rules and pricing?
qualify it to become a WESM member. A. ERC C. NGCP
A. Direct C. Intending B. DOE D. PEMC
B. Indirect D. Super
56. Type of WESM membership wherein any person or entity that wishes
to trade indirectly in the WESM.
A. Direct C. Intending
B. Indirect D. Super

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68. It is the committee in PEMC that is appointed by the PEMC board, that
conducts annual audtis of the market operator and the settlement
system and any other procedures, persons, systems, or other
matters relevant to the spot market.
A. Market Surveillance C. Dispute Resolution
B. Rules Change Administrator
Committee D. Technical Committee
69. It is the committee that is tasked to assist the PEM Board regarding
technical matters on the operation of the spot market and is composed
of five members.
A. Market Surveillance C. Dispute Resolution
B. Rules Change Administrator
Committee D. Technical Committee
70. It is the committee on the PEMC that is tasked to monitor and report on
the activities in the spot market.
A. Market Surveillance C. Dispute Resolution
B. Rules Change Administrator
Committee D. Technical Committee
71. This section of PEMC is tasked to facilitate the resolution of disputes,
speed up the resolution of conflicts and ensure the application of the
provisions of the Dispute Resolution Market Manual.
A. Market Surveillance C. Dispute Resolution
B. Rules Change Administrator
Committee D. Technical Committee
72. The ability of the electric system to withstand sudden disturbances
such as electric short circuits or unanticipated loss of system elements.
A. security C. spinning reserve
B. single outage D. stability
contingency
73. The ability of the dynamic component to return to a normal or stable
operating point after being subjected to some form of change or
disturbance.
A. security C. spinning reserve
B. single outage D. stability
contingency
74. An event cause by the failure of one component of the grid including
a generating unit, transmission line, or transformer.
A. security C. spinning reserve
B. single outage D. stability
contingency

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