Reactive power marketing in a reregulated transmission network

The electric power industry in the USA is in the throes of “reregulation”. This phenomenon is often called “deregulation”, on the notion that the traditional geographic monopolies held by electric utility companies will eventually become extinct. However, the very process of establishing open access to the high-voltage transmission grid has given rise to new regulations (hence the term “reregulation”). After a very brief review of the meaning and significance of reactive power, this paper discusses the controllability and dispatchability of reactive power. Finally, the author comments on several issues surrounding reactive power as a marketable commodity