I also sent this yesterday but think it failed to go.  

Gene

Begin forwarded message:

> From: Eugene Coyle <[email protected]>
> Subject: more on the Structure of the energy system: fossil vs renewables 
> Date: March 24, 2012 2:36:21 PM PDT
> To: Progressive Economics <[email protected]>
> 
> 
> On Mar 24, 2012, at 11:35 AM, [email protected] wrote:
> 
> <snip>
> 
>> 
>> 
>> (5) Transmission: With the present fossil-fuel-powered
>> system, transmission lines from the large-scale fossil fuel
>> or nuclear power plants to the consumers are needed.  This
>> transmission and distribution network has tree structure:
>> electricity always flows in one direction, from the
>> generator to the consumers.  
> 
> snip>
> 
>> This is how I see it.  I may have overlooked things.
>> Please comment.
>> 
>> Hans
> 
> Hans, what I sent a few minutes ago implied what I'll add here.  I disagree 
> that Transmission has a tree structure, or only one direction of flow.
> 
> The interties between the Northwest and Southwest are a simple example.  In 
> general the seasonal loads, North vs South, are opposite -- peak in the North 
> in the winter, peak in the South in the summer.  So both areas have larger 
> baseload capacity than they need for much of the year, and employ that year 
> round by the swap that transmission enables.
> 
> It is also true that adjoining utilities all over the country plan their 
> systems with contracts with neighbors that enable them to build and run the 
> most appropriate system.  Let me make up an example.  Suppose utility A sees 
> a need for new capacity in the near future amounting to 400 mW.  And suppose 
> the most efficient (in the heat rate sense) plant on offer from manufacturers 
> is 700 mW.  If utility A anticipates future load growth beyond 400 mW, it 
> might build the 700 mW plant and contract with a neighbor to buy 300 mW for 
> the first year of operation, 250 in the second year, 150 in the third year, 
> etc.  And utility B, the purchaser, might meanwhile make plans and then begin 
> building a new plant of its own, larger than its own needs (at first) and 
> selling its expected excess to utility A in the far future when utility A 
> begins to need capacity beyond what the 700 mW plant will provide.
> 
> This was for decades a very common planning practice among utilities, often 
> involving more than a simple pair.
> 
> Gene
> 

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