Practice Test Geeks(CEP) Certified Energy Procurement Professional Practice Test
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CEP Grid Infrastructure & Transmission Flashcards

6 cards from real CEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CEP Grid Infrastructure & Transmission flashcards as text

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

    Answer: Federal Energy Regulatory Commission (FERC)

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

  2. What is a 'congestion charge' in electricity transmission?

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

    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.

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

    Answer: Energy + congestion + losses

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

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

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

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

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

    Answer: Available Transfer Capability (ATC)

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

  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?

    Answer: The combined congestion and loss components at that delivery node

    The difference between a node LMP and the hub LMP represents the congestion and loss components specific to that delivery location.