Sub-transmission Asset and Dispute Quiz

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What must a newly commissioned generating plant declare during its application for a Connection Agreement?

Grid compatibility

Black Start Capability (correct)

Operational efficiency

Connection capacity

Which service can an embedded generator still provide if it cannot meet Primary Reserve requirements due to insufficient headroom?

Synchronous generation

Total generation capacity

Reactive Power Support (correct)

Frequency modulation

What is the most appropriate reserve service to manage fluctuations from an intermittent Variable Renewable Energy (VRE) source?

Emergency Backup

Demand Response

Tertiary Reserve (correct)

Primary Reserve

What action should the System Operator take if a newly commissioned plant does not specify its Black Start Capability?

Require installation of Black Start Capability Signup and view all the answers

Which of the following is a regulatory requirement for ancillary services provided by generators?

Certification and contracting by the System Operator Signup and view all the answers

What potential issue arises from prolonged manual control in a generating unit?

Penalties for failing service standards Signup and view all the answers

What should be prioritized during the deployment of reserves if a Primary Reserve provider is unavailable due to maintenance?

Tertiary Reserve deployment Signup and view all the answers

Which factor is not a concern for the Distribution Utility regarding an intermittent Variable Renewable Energy source?

Predictable energy delivery Signup and view all the answers

What is the primary benefit of a plant having Black Start Capability?

Enhanced grid resilience during outages Signup and view all the answers

What could be a consequence for a qualified interruptible load that fails to activate during a disconnection event?

Penalties and certification suspension Signup and view all the answers

What should a power distribution utility do if it disputes the asset valuation set by TRANSCO?

Negotiate with TRANSCO regarding valuation Signup and view all the answers

Who has the authority to resolve disputes related to the valuation of sub-transmission assets?

The Energy Regulatory Commission (ERC) Signup and view all the answers

What must occur for another company to use a generation company's limited transmission facilities for competitive purposes?

Ownership must be transferred to TRANSCO Signup and view all the answers

If the companies involved in a transmission asset valuation dispute cannot agree, what determines the fair market price?

The Energy Regulatory Commission (ERC) Signup and view all the answers

What is a key factor that a plant should assess regarding its infrastructure?

Its ability to start independently Signup and view all the answers

What must the load operator do to ensure compliance with reserve activation protocols in the future?

Review and improve activation protocols Signup and view all the answers

What is the primary action the System Operator should take during a system-wide frequency dip caused by a generating unit overriding its Governor Control?

Instruct the generating unit to revert to Governor Control. Signup and view all the answers

What is a regulatory requirement for Black Start providers when frequently requested to provide services?

Operational limitations must be considered in service agreements. Signup and view all the answers

To comply with regulatory requirements, what Power Factor should the generating unit operate at under increased demand conditions?

0.85 lagging Signup and view all the answers

What consequences might a generating unit face for failing to comply with Power Factor limits?

Penalties or suspension from providing ancillary services. Signup and view all the answers

During scheduled maintenance of the Primary Reserve provider, what should be in place to ensure frequency stabilization?

Tertiary Reserve should be deployed. Signup and view all the answers

Which statement accurately reflects the obligations of generating units in relation to Governor Control?

Governor Control must be maintained to avoid grid violations. Signup and view all the answers

What should the generating unit do to manage operational concerns when frequently called for Black Start services?

Negotiate a service agreement with operational limits. Signup and view all the answers

What is the expected output of a generating unit providing Reactive Power Support operating at a Power Factor of 0.80 lagging?

Increase output to reach 0.85 lagging compliance. Signup and view all the answers

What must a generating plant do to avoid penalties for non-compliance with performance standards?

Consistently meet the standards set by the Grid Code Signup and view all the answers

What provision does EPIRA offer to electric cooperatives unable to afford full acquisition of sub-transmission assets?

They are offered concessional financing for 20 years Signup and view all the answers

What must a qualified buyer demonstrate before purchasing a transmission asset during privatization?

Financial and technical capability Signup and view all the answers

What happens if a generation company constructs a transmission line deemed necessary by TRANSCO?

The line is transferred to TRANSCO at a negotiated price Signup and view all the answers

What requirement must a local government unit fulfill to operate as a distribution utility under EPIRA?

Comply with ERC regulations and hold a national franchise Signup and view all the answers

In the event of non-compliance with the Grid Code, what action can the ERC take?

Impose penalties or sanctions Signup and view all the answers

What is a critical condition for ancillary services provided by a generating plant?

They must maintain grid reliability Signup and view all the answers

What must occur if parties cannot agree on the fair market value of an asset being transferred to TRANSCO?

The ERC will determine the fair market value Signup and view all the answers

What action will the ERC take if two distribution utilities cannot agree on forming a consortium for sub-transmission asset operation?

The ERC will enforce the consortium formation guidelines as per EPIRA. Signup and view all the answers

What must TRANSCO submit before upgrading its high-voltage transmission facilities?

Plans for expansion to the ERC for approval. Signup and view all the answers

What must a generation company do to connect to the grid if its facilities do not comply with the TDP?

Seek prior authorization from the ERC. Signup and view all the answers

What financial assistance does EPIRA provide to electric cooperatives acquiring sub-transmission assets?

Concessional financing over a 20-year period. Signup and view all the answers

After acquiring a sub-transmission asset, what must a distribution utility ensure regarding service quality?

Service quality must remain unchanged for end-users. Signup and view all the answers

What is one of the obligations of a concessionaire operating TRANSCO’s transmission facilities under the Grid Code?

To maintain compliance with the Grid Code's requirements. Signup and view all the answers

Which of the following is true regarding subscription rights for distribution utilities in a consortium?

They should be proportional to the load requirements unless agreed otherwise. Signup and view all the answers

What is the consequence if a distribution utility fails to provide quality service after acquiring a sub-transmission asset?

The DU may face fines and regulatory actions. Signup and view all the answers

Study Notes

Sub-transmission Asset Acquisition and Dispute Resolution

If a power distribution utility (DU) disagrees with the value of a sub-transmission asset set by TRANSCO, the dispute should be resolved through negotiation.
If negotiation fails, the Energy Regulatory Commission (ERC) has the authority to resolve the dispute.
The ERC is responsible for resolving issues related to valuation and disposal of sub-transmission assets.

Competitive Use of Limited Transmission Facilities

If limited transmission facilities are required for competitive purposes, ownership of these assets must be transferred to TRANSCO at a fair market price.
If the involved parties disagree on the valuation, the ERC will determine the fair market price.

Consortium Formation for Sub-transmission Assets

When two distribution utilities (DUs) connected to the same sub-transmission asset cannot agree on forming a consortium for its operation and maintenance, the ERC will resolve the issue.
The ERC will ensure the consortium is formed in accordance with EPIRA.
The subscription rights for each DU should be proportional to their load requirements, unless otherwise agreed.

Transmission Facility Expansion Approval

Before TRANSCO proceeds with expansion or improvement of its facilities, it must submit its plans to the ERC for approval.
These expansions must be consistent with the Grid Code and the Transmission Development Plan (TDP), which is integrated into the Philippine Energy Plan.

Connecting Generation Plants to the Grid

If a generation company's dedicated transmission facilities don't align with the current Transmission Development Plan (TDP), the company must seek prior authorization from the ERC.
If the ERC deems the facilities necessary for grid connection, the company may proceed.

Electric Cooperative Acquisition of Sub-transmission Assets

EPIRA provides concessional financing over a 20-year period for electric cooperatives acquiring sub-transmission assets from TRANSCO.

Quality of Service Following Acquisition

When a distribution utility (DU) acquires a sub-transmission asset from TRANSCO, it must ensure the takeover does not diminish service quality for end-users.
This is a mandatory requirement under EPIRA.

Obligations of Transmission Facility Concessionaires

The concessionaire must comply with the Grid Code and the Transmission Development Plan (TDP) approved by the ERC.
Failure to meet these obligations could result in penalties or sanctions imposed by the ERC.

Generating Plant Ancillary Service Penalties

If a generating plant doesn't meet the performance standards set by the Grid Code for ancillary services, the ERC can impose penalties for non-compliance.
Ancillary services must maintain grid reliability, and failure to do so will result in sanctions.

Special Provisions for Rural Electric Cooperatives

Electric cooperatives operating in rural areas and facing financial difficulties in acquiring assets from TRANSCO can benefit from concessional financing provided by EPIRA over a 20-year period.
These cooperatives can prioritize installment payments from the net income generated by the assets.

Compliance with Grid Code During Privatization

Buyers of transmission assets during TRANSCO’s privatization process must demonstrate financial and technical capability, with proven experience in managing transmission systems of comparable capacity.
Compliance with the Grid Code and related performance standards is required to avoid penalties.

Ownership Transfer for Competitive Lines

If a generation company constructs a transmission line connecting its plant to the grid, and TRANSCO asserts that the line is necessary for competitive purposes, ownership must be transferred to TRANSCO at a fair market price.
If the parties cannot agree on the price, the ERC will determine the fair market value.

Local Government Unit Obligations Under EPIRA

Local government units operating as distribution utilities must maintain a national franchise and comply with ERC regulations, as electricity distribution is a regulated common carrier business.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your understanding of the processes involved in the acquisition and dispute resolution of sub-transmission assets. This quiz covers negotiation procedures, the role of the Energy Regulatory Commission, and the competitive use of transmission facilities. Prepare to explore how disputes are resolved regarding asset valuations and consortium formations.