schedule generation additions at longer intervals by buying capacity when it is
short and selling capacity when a large unit has just been brought on-line and it has a surplus. Pure capacity reserve interchange agreements do not entitle the purchaser to any energy other than emergency energy requirements. 10.6.2 Diversity Interchange
Daily diversity interchange arrangements may be made between two large
systems covering operating areas that span different time zones. Under such circumstances, one system may experience its peak load at a different time of the day than the other system simply because the second system is 1 h behind. If the two systems experience such a phenomenon, they can help each other by interchanging power during the peak. The system that peaked first would buy power from the other and then pay it back when the other system reached its peak load. This type of interchange can also occur between systems that peak at different seasons of the year. Typically, one system will peak in the summer due to air-conditioning load and the other will peak in winter due to heating load. The winter-peaking system would buy power during the winter months from the summer-peaking system whose system load is presumably lower at that time of year. Then in the summer, the situation is reversed and the summerpeaking system buys power from the winter-peaking system. 10.6.3 Energy Banking
Energy-banking agreements usually occur when a predominantly hydro system
is interconnected to a predominantly thermal system. During high water runoff periods, the hydro system may have energy to spare and will sell it to the thermal system. Conversely, the hydro system may also need to import energy during periods of low runoff. The prices for such arrangements are usually set by negotiations between the specific systems involved in the agreement. Instead of accounting for the interchange and charging each other for the transactions on the basis of hour-by-hour operating costs, it is common practice in some areas for utilities to agree to a banking arrangement, whereby one of the systems acts as a bank and the other acts as a depositor. The depositor would deposit energy whenever it had a surplus and only the MWh deposited would be accounted for. Then, whenever the depositor needed energy, it would simply withdraw the energy up to MWh it had in the account with the other system. Which system is banker or depositor depends on the exchange contract. It may be that the roles are reversed as a function of the time of year. 10.6.4 Emergency Power Interchange
It is very likely that at some future time a power system will have a series of generation failures that require it to import power or shed load. Under such BLOG FIEE