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“The Fundamentals of International Congestion Management Practices” Date: Tuesday, 4 Oct 2005 Time: 8h30 – 12h30 Place: Hilton Palacio del Rio Hotel Content Tutorial #1 is an introduction to Congestion Management. The tutorial describes the interaction between the technical and the economic aspects of Congestion Management. Congestion Management methods are discussed from three perspectives: market organization, market structure and the physics of the electrical grid. The tutorial is divided into two parts. The first part is an introduction to the theory of Congestion Management and will answer such questions as “what is congestion and what are its sources?”, “can congestion be avoided or at least its consequences limited?” The first part will also provide a detailed description of the methods used to deal with transmission constraints. The second part of the tutorial describes the practical implementation of current Congestion Management methods. Speakers from the industry will share their experiences and explain how their specific methodology is used in handling transmission constraints. “The Fundamentals of International Congestion Management Practices” Tuesday, 4 Oct 2005 Programme Time Content Theoretical Introduction to Congestion Management What is congestion and which are its sources? Why do we divide congestion into internal or cross-border? What are the methods to handle transmission constraints? What are the zonal and nodal network models? How the electricity market design influences congestion management? What are parallel or loop flows? Why is there a difference between physical and commercial transport capacity? What are Power Transfer Distribution Factors PTDF? What are Financial Transmission Rights FTR? Break Handling of internal congestion in a large control zone How is internal congestion managed in France? What are the pros and cons of a copper-plate approach to transmission network? Locational Marginal Pricing How is transmission congestion managed in PJM? How the security constrained bid based central dispatch works in practice? What are the experiences with LMP? Jean-Gabriel Valentin RTE French Transmission System Operator Stu Bresler PJM Interconnection Regional Transmission Organization Pavel Solc Explicit Auctioning of Transmission Capacity Explicit auctioning of transmission capacity in Central Europe. Challenges of TSO cooperation Experiences with coordinating the cross-border capacity allocation CEPS Transmission System Operator of the Czech Republic Speaker Konrad Purchala K.U.Leuven University of Leuven, Belgium 8h30 – 10h00 10h00 – 10h15 10h15 – 10h40 10h40 – 11h05 11h05 – 11h30 11h30 – 11h55 Market Coupling and Market Splitting Integration of day-ahead sport market and cross-border capacity allocation What are the differences between different variants of implicit capacity auctioning and why? How is the problem of interdependency of cross-border flows tackled in Nord Pool? Electricity Market in Transition Unique example of CM applied in the market situation with Vertical Integrated Utilities What are the challenges when opening the electricity markets? How do you choose a market design? Ole Gjerde Statnet Norwegian Transmission System Operator Tatsuya Nakase Kansai Electric Power Co Kepco, Japan 11h55 – 11h20 “Transmission Challenges” Date: Tuesday, 4 Oct 2005 Time: 14h00 – 17h00 Place: Hilton Palacio del Rio Hotel Content This tutorial addresses the transmission consequences of Congestion Management and lays out the challenges faced by the Electric Power Industry. The first part of the tutorial will raise the basic issues facing transmission. The succeeding parts will provide current challenges faced by leading Transmission System Operators. The tutorial presenters have extensive experience of interconnections in various market situations. The Nordic countries have arrangements for congestion management and are planning new transmission. PJM is an important example of US practical experience of operating a large transmission system in a market environment, as well as the transitional issue of government-owned generation in Canada. The developing situation between countries in Europe, with different physical situations regarding the distribution of generation suppliers and load demand, will be compared and contrasted with the parallel issues between transmission utilities in North America. Transmission Challenges in a Market Environment Tuesday, 4 Oct 2005 Programme Time Content Speaker 14h30 – 14h45 Transmission Investment Decision Making The challenge of markets Colin Ray UK 14h45 – 15h15 Transmission Planning and Operation in the Nordic countries Congestion management with constrained interconnections in Nordel Prof. O. B. Fosso Norway 15h15 – 15h30 Break 15h30 – 16h15 Managing Transmission – the PJM Experience Transmission Planning and Operation in a Market Environment William Whitehead USA 16h15 – 16h45 Developing Electricity Transmission structures in Europe National TSOs ETSO Prof. O. B. Fosso Norway 16h45 – 17h30 Managing Transmission – the Canadian Experience Transmission Planning and Operation in a Market Environment Mark Graham Canada 17h30 – 17h45 Summation Colin Ray UK

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