Grid Structure
Grid
Our interconnected electricity system with electricity supply, electricity consumers, redundancy, and other features.
Grid Parts
It is useful to think of the grid as a collection of separate activities.
- Generation
- Distribution
- Balancing
- Procurement
- Customer Billing
Regulated Utility
Utilities are allowed to function as monopolies under the condition that they are subject to strict regulation.
PUHCA 1935
- Public Utitily Holding Company Act
- Holding companies allowed for consolidation of utility ownership
- Act passed to curb abuse of holding companies
PURPA 1978
- Public Utility Regulatory Policies Act
- Allows for self-generation by customers
- Requires utilities to purchase from Qualifying Facilities (QFs)
- Created competition
Categories of Utility Ownership
- Investor Owned Utilities
- Federally Owned Utilities
- Publicly Owned Utilities
- Rural Electric Cooperatives
IPPs
Independent power producers that provide electricity to the grid.
Independent System Operators (ISOs)
Entity charged with grid stability.
North American Reliability Corporation (NERC)
Agency responsible for ensuring that the grid is available with minimal disruptions.
Community Choice Aggregator
Aggregates the buying power of individual customers to secure energy from sources that reflect local preferences.