When a grid is operating, each utility is obligated to provide power to it. But what happens if a grid fails and a utility can still provide power locally? Will this utility be allowed to provide this power to its local customers?

-- Anonymous, October 23, 1998

Answers

Steve, I have no substantiation for this, but offhand I'd say that a utility would both desire to, and be obligated to provide power locally if they were able to. I can't imagine who or what would not "allow" them to provide the vital service to their customers that they are in business for. (And their customers might think about lynching them if they didn't! )

-- Anonymous, October 24, 1998

It's not so simple. Deregulation blurs the definition of a Utility Company. Is it a regulated company or a deregulated company? A commercial cogen plant or an IPP? These alternative generation sources are making up a larger part of the mix today and while they have an economic reason to be on-line they don't have a regulatory requirement to be up. If they feel they have too much risk at rollover they can choose to shut down and not offer any power for sale on the wholesale market. The NERC website has interesting data on the operating reserves by region for various time periods. Some areas are close to the 10% reserve point at this time. Loss of IPPs will be one of the contingencies to plan for.

-- Anonymous, October 27, 1998