CEP CEP Grid Infrastructure & Transmission

Question 1

Which U.S. federal agency regulates the interstate transmission of electricity and approves transmission tariffs?

Accepted Answer

Federal Energy Regulatory Commission (FERC)

Answer

Environmental Protection Agency (EPA)

Answer

Department of Energy (DOE)

Answer

North American Electric Reliability Corporation (NERC)

Question 2

What is a 'congestion charge' in electricity transmission?

Accepted Answer

A cost that arises when transmission constraints prevent lower-cost power from flowing to a delivery point

Answer

A fee for exceeding contracted transmission capacity

Answer

A penalty for curtailing scheduled generation

Answer

A surcharge applied during peak demand hours

Question 3

In LMP (Locational Marginal Pricing) markets, what three components make up the total LMP at any node?

Accepted Answer

Energy + congestion + losses

Answer

Energy + capacity + ancillary services

Answer

Generation + transmission + distribution

Answer

Fuel cost + O&M + profit margin

Question 4

What is the role of a Regional Transmission Organization (RTO) in the U.S. electricity market?

Accepted Answer

It provides independent management of the high-voltage transmission grid and runs competitive wholesale markets

Answer

It owns and operates generation assets in its region

Answer

It sets retail electricity rates for end-use customers

Answer

It enforces environmental regulations on power plants

Question 5

Which term describes the maximum amount of electricity that can be reliably transmitted over a transmission path without causing reliability violations?

Accepted Answer

Available Transfer Capability (ATC)

Answer

Firm transmission capacity

Answer

Capacity factor

Answer

Transmission loss factor

Question 6

A customer purchases electricity in an RTO market and takes delivery at a load node with an LMP of $45/MWh, while the hub LMP is $40/MWh. What does the $5/MWh difference represent?

Accepted Answer

The combined congestion and loss components at that delivery node

Answer

A capacity charge for peak demand

Answer

A distribution tariff surcharge

Answer

The renewable energy premium