Interconnection Development and Operation

The possibilities of interconnection can only be realized when the system is effectively developed and operated. The interconnected system functions as a unit but the companies owning the different parts have diverse interests which must be sufficiently coordinated both in development and operation to make the benefits of the interconnection available to all the participants. There is question as to how much coordination is sufficient. The differences which exist between an interconnected system and a similar system under one ownership result either from the larger size of the interconnected system or from the variations in interests of the ownerships involved. Interconnection development usually tends to reduce generation costs while increasing transmission costs and hazards. Possibly there are some limits to the size of the interconnected system and the degree of coordination desirable between ownerships. Closed loop operation involving several companies requires attention. Interconnections may be operated by centralized direction or by cooperative methods between adjoining system operators. The unit characteristics of the system require some coordination of the group as a whole. Operation should be simplified as far as possible with adequate operating facilities.