November 1, 2005

Priority-based Control Engineering announces planned release of AGC designed to help utilities benefit from MISO market opportunities

Priority-based Control Engineering (PCE) announced that it would be delivering a version of its flagship Priority-based Generation Control (PGC) software specifically designed to work in conjunction with the MISO market. This automatic generation control package will enable Balancing Authorities in the market to maximize their profit while maintaining the highly reliable operation that industry standards demand. PCE expects to be able to begin integrating its new package into utilities' systems by December 2005 and believes that this will be the first AGC package so extensively integrated with MISO market rules.

The upgraded package will build on PCE's long record of reducing generation costs. PGC has been widely praised by operations staff at utilities using it for its intelligent use of regulation resources; it is designed to operate units close to their optimal generation levels with minimum unit maneuvering. PCE began offering PGC in 1999 as an upgrade to control areas? existing EMS/GMS platforms to help them benefit from relaxed NERC control performance standards (CPS). PGC is compatible with virtually any existing EMS/GMS platform and has now been installed in electric utilities with a peak load ranging from about 2000 MW to over 40,000 MW.

Optimized operation under the MISO market requires that its participants' generation control software take into account not only unit incremental generation costs, but also unit Locational Marginal Price (LMP) information. The upcoming version of PGC considers both and, with consideration of all MISO rules and physical operating constraints, determines the most profitable operating point for each unit. It also anticipates generation and demand changes in order to maintain the generation level of each unit near its maximum profitability point while safely limiting the imbalance between supply and demand inside the Balancing Authority and providing proper Interconnection frequency support. At the same time, the MISO version of PGC software maintains and continually revises its estimate of the final hourly LMP at each generating unit and quickly reacts to benefit from profitable opportunities.

MISO market rules are designed to create incentives to reward reliable operation, encouraging a generation increase in areas where it is needed and a generation decrease in areas that have an oversupply. Therefore, as MISO market participants begin using PGC, PCE anticipates that they will respond more effectively to price signals, improving reliability of the entire system.

PCE is a privately held consulting and software development company with extensive expertise in generation control. Among its achievements is the creation of the technical basis underlying NERC's existing generation control performance standards, CPS1 and CPS2, and leading their implementation. PCE is now consulting NERC on evaluating revisions of these standards.

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