Transmission Expansion in the New Environment.

This chapter deals with transmission expansion. Following development of the energy market, the transmission provider transforms into the independent transmission company (ITC) so as to admit a highly sophisticated market. Since the transmission grid is a physical system, the ITC is able to execute bilateral contracts as far as the system design and operating conditions permit. Consumers can establish various service contracts with any supplier in order to obtain the lowest rate and most desirable service. The ITC is required to make complex business decisions over a wide range of time scales, such as the long-term, short-term and near real-time. This chapter discusses future directions and modifications to the regulatory policies to make the ITC serve as both a market maker and a service provider. [ABSTRACT FROM PUBLISHER]