Common use of Accounting for Loop Flows Clause in Contracts

Accounting for Loop Flows. The processes for accounting for loop flows caused by uses of the transmission system between Control Areas are different under a market environment. Absent a market, loop flows from Transmission Service reservations between Control Areas are identified and accounted for by importing transmission reservations from surrounding systems. Under a market environment, the market will not have explicit transmission reservations for evolving market dispatch conditions between market Control Areas. Thus, a mechanism for accounting for anticipated Market Flows on non-market systems is necessary.

Accounting for Loop Flows. The processes for accounting for loop flows caused by uses of the transmission system between Control Areas control areas are different under a market environment. Absent a market, loop flows from Transmission Service point-to-point transmission reservations between Control Areas control areas are identified and accounted for by importing transmission reservations from surrounding systems. Under a market environment, the market will not have explicit transmission reservations for evolving market dispatch conditions between market Control Areascontrol areas. Thus, a mechanism for accounting for anticipated Market Flows market flows on non-market systems is necessary.