A Regional System Operator in the Western Interconnection would create significant environmental and economic benefits. California alone could realize annual savings of up to 1.5 billion dollars while cutting the state’s greenhouse gas emissions by eight to ten percent in 2030. However, many stakeholders have rejected development of a Regional System Operator both historically and in recent California Legislative sessions. Ultimately, key stakeholders’ fears of repeating the California Electricity Crisis, relinquishing state authority, allowing greater interference from the Federal Energy Regulatory Commission, and sacrificing legislative environmental progress in California have created political opposition and legislative failures blocking efforts to develop a Regional System Operator. To overcome these political failures and realize the benefits of a better-organized regional electricity market, stakeholders will need to compromise and accept the vague risks of unforeseen consequences.

Electricity power is an irreplaceable resource in industry for a country. Enough and steady-offered electricity is also the support to develop not only traditional industry but high technology industry. Taiwan is a place, where is lacking of natural resources. There is only 3 % of which can be self ¡Vcontained. In fact, electricity power plays one of important roles in achieving ¡§Economic Miracle of Taiwan.¡¨ Basically, electricity power embraces three parts of power generation, power transmission, and distribution. And it is managed by the way of vertically integration. Traditionally, electricity power is assorted into public utility because of its huge principal and social resources, even concerning with the economy and society of the country and is governed and controlled by the government. Whatever country promotes electricity liberalization, the government and the academic put their eye on foster the total efficiency of management through market mechanisms. Electricity liberalization has been working for more than twenty years. Of course, there are some successful cases, for example, like England, Australia, and etc. They do benefit from increasing the occurrence, the efficiency, and decrease the price after operating electricity liberalization. As to Taiwan, the government has the same policy on it, too. The amendments are under discussion in The Legislative Yuan. By referencing to electricity liberalization of other countries and comparing their experiences with Taiwan, the questions below are searched in this thesis. First, does the policy in Taiwan really satisfy the essence of electricity liberalization? Second, could power generation, power transmission, and distribution of the electricity industry be operated by vertically integrated way? After electricity liberalization, it is important that how to do could get good combined with competition of the market, the offer of steady electricity and the society justice. If not, how to modify the rules would satisfy the needs of country development and expectations of the society.

The purpose of the proposed research is to design a Decentralized Voltage/Stability Monitoring and Control System to counteract voltage violations and the impact of disturbances/contingencies on power system voltage stability. A decentralized voltage and stability control system is designed to coordinate the controls of the local secondary voltage control devices and necessary load shedding without requiring information about the rest of the system. The voltage/stability control can be formulated as a multi-objective optimization problem. The control objectives include, but are not limited to: minimization of system active/reactive losses; maximization of the system stability margin; and minimization of the control actions. The constraints of the optimization problem depend on the specifications of the actual system components. For the first time, margin sensitivities of the control actions are included in the control formulation. The concept of using margin sensitivity to evaluate the post-control load margin is presented as a fast and accurate way to assess potential voltage and stability control options. A system decomposition procedure is designed to define the disturbance-affected zone as an independent control subsystem. A normal constraint algorithm is adopted to identify the most suitable control solution in a shorter timeline than the typical utility voltage-control practice. Both steady-state and dynamic simulations are performed to compare the proposed system with typical utility control practices.