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US Deregulation Creates Power Quality
Uncertainty
Published: Friday, 16 November
2001
By Sara M. Bradford
Power quality concerns are very legitimate in a world
of e-commerce, high-speed data lines, and other power-sensitive
technology operations. As the process of electric deregulation
continues its slow spread across North America, many
customers have become confused as to the effect of deregulation
on power quality. Some suggest that the more efficient,
cost-conscious electric utilities patterned by deregulation
will somehow allow power quality to suffer in exchange
for increased profits.
On the other hand, others believe the newly competitive
utility entities will become more conscious of power
quality issues as they compete for customer business.
In any event, the result is expected to be an increased
focus on power quality issues ultimately by the consumer.
This will expand customer awareness of the benefits
of these services.
Deregulation Lowdown
As one of the last major regulated energy industries
in the United States, the electric power industry is
in a state of constant change and increasing competition.
Both of these competitive factors have their pros and
cons, including competitive pricing but sometimes less
reliable power.
Currently, retail electricity customers in some states
such as California and New York can choose their electricity
company. Wholesale electricity trading markets that
were nonexistent until recently have emerged, and are
in full operation in many regions of the country. The
magnitude of competition resulting from independent
power producers and power marketers has increased substantially
over the past few years.
However, this transition has not been seamless in its
initiation. Recently, California experienced problems
with its deregulated electric power markets. Electricity
prices in some parts of the State have tripled, leaving
consumers dissatisfied. In addition, the State has experienced
supply problems sporadically, which oftentimes include
brown- and black-outs.
As with many regulatory issues, there are two sides
to the story for electric power deregulation. Some observers
opine that deregulation should be done away with as
the process has created too many problems. Others argue
that deregulation is a noble endeavor and many of the
problems states are experiencing can simply be solved
with structural adjustments in each market.
What This Means for Power Quality
In the short term, stable electricity
service could be threatened as states begin to deregulate
their electric utility markets. Consumers have resorted
to protecting all of their equipment ranging from server
networks to entire telecommunications networks at the
highest level possible. This increase in power quality
demand has greatly influenced the services market. As
more states become deregulated, it is expected that
there will be an increase in industry confusion. That
in addition to the technical limitations of power grids
could potentially result in unstable service.
A major challenge to the deregulated electric power
industry is the increase in the volume of transactions.
This increase in transactions ultimately changes the
way power flows through the grid, creating new patterns
with magnitudes and directions that have previously
not been witnessed or studied. This creates minimal
operating experience in this industry for these types
of problems.
The instability in today's power markets in addition
to the demand for clear power creates challenges for
both the electric power industry and power end-users.
For peace of mind, customers are turning now more than
ever to high-quality, redundant backup and conditioning
power equipment, in addition to power quality services
to help maintain reliable systems in the event of power
failure or degradation.
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Updated: 2007/06/29
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