CEP CEP Grid Infrastructure & Transmission 1

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

FERC regulates interstate electricity transmission, approves open-access transmission tariffs, and oversees wholesale electricity markets.

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

Congestion charges reflect the price difference between a generation source and the delivery point when transmission constraints limit power flow, forcing use of more expensive local generation.

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

LMP = Energy component (system marginal price) + Congestion component (cost of transmission constraints) + Loss component (cost of electrical losses).

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

RTOs independently operate transmission systems, dispatch generation to balance supply and demand, and administer wholesale energy, capacity, and ancillary services markets.

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

Available Transfer Capability (ATC) is the remaining capacity on a transmission path after accounting for existing reservations and reliability margins.

(CEP) Certified Energy Procurement Professional Practice Test

(CEP) Certified Energy Procurement Professional Practice Test

CEP CEP Grid Infrastructure & Transmission 1