ABSTRACT
This chapter presents the structure and concept of horizontally integrated utilities. The contract participation and area control error (ACE) participation factors are introduced to facilitate the formulation of the block diagram model and the deregulated multi-area load frequency control (LFC) power systems. In the conventional paradigm of power system, the generation, transmission, and distribution are owned by a single entity known as a vertically integrated utility (VIU). In the competitive environment of power systems, the VIU does not exist and a new paradigm is in effect. In this new paradigm, the utilities do not own the generation, transmission, and distribution. Instead, there are three different entities: generation companies (GENCOs), transmission companies (TRANSCOs), and distribution companies (DISCOs). The independent system operator (ISO) has to control a number of ancillary services pertaining to the quality of the power service. One of the most profitable ancillary services is the automatic generation control (AGC).
