As new merchant power plants and nonutility generating facilities(NUGs) are added to the utility grid system, their overall generatingcapability becomes significant to independent system operators (ISO).These facilities deliver real power (MW) to the utility grid as-well-ashaving the capability to export and import reactive power (MVAr). In thederegulated environment, NUGs are being connected to the grid(dispatched) for both real and reactive power generation capabilities.The parameters that define the ability of a NUG to generate and deliverreal power are well known. However, the various factors that affect theability of a NUG to export or import MVAr are less obvious. This paperpresents a case study in the optimization of a NUG's ability to exportand import MVARs to an ISO interconnection point
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