Impact of load management and joint ownership of generation of two interconnected systems utilizing joint cumulants and the bivariate Gram-Charlier expansion

As oil and gas prices continue to increase, many electric utilities are turning to load management as a means of reducing their capital and operating costs. Different load management approaches are considered, and their effect on the global production costs of two interconnected systems is studied. A probabilistic technique for the calculation of production cost of two interconnected systems with joint ownership of generation is developed. A comparative study on production cost is made with and without a jointly owned generating unit. The method is based on the notion of statistical cumulants and the application of the bivariate Gram-Charlier expansion. Joint cumulants are used to represent the joint probability density function of the two systems' loads, and also to represent the probability density function of the outage of the jointly owned generating unit. Demand correlation is considered.