This proposal discusses a major problem, that of restructuring the overall automatic generation control of power systems in order to provide effective control of system reactive energy integrated with that of active power, so that system voltage phenomena are brought under effective control and system voltage dynamics cease to be disruptive and expensive. It is argued that an effective first step will be to demonstrate the centrality of local reactive energy balances (VAr "supply" and "losses") to the maintenance of an adequate system voltage profile, and to formulation of an effective control objective function. At the same time, this demonstration will provide immediately an effective means for establishing on-line operating constraints on energy transfers so as to minimize production costs while maintaining an acceptable level of system security. Thus, Phase I, while being of appropriately modest scope, will demonstrate the feasibility of an effort for Phases II and III that will provide a powerful and effective tool for dealing with a costly problem, and will also lay an effective groundwork toward solution of the larger problem of overall system control restructuring.
