NR 507 Midterm Questions and Answers

NR 507 Midterm Questions and Answers How, in most cases, is electricity produced? Primary sources of energy are used to spin a turbine, connected to a generator, converting mechanical energy to electrical energy. What is the difference between alternating current (AC) and direct current (DC)? AC = Direction of electrons flow back and forth DC = Electrons flow in one direction. Who was the champion of AC and DC? AC = Nikola Tesla DC = Thomas Edison In the early stages, why did AC win out in the current wars? It allowed high voltages to be carried long distances and then transformed into lower voltages for customer use. What was the early use of electricity that enhanced economic development? Utility companies built grids over larger areas, saving costs through economies of scale. Why did we tend towards monopolies at the start of the grid? The grid wasn't regulated at the beginning, which allowed companies to form monopolies. What are the concerns of monopolies? They can raise the price as high as they want. What was the Regulatory Compact? Granted utilities monopoly status from state governments, which limited the rates they could set for customers. What was the impact of the energy crisis on our grid? How did it impact our approach to utilities and regulation? The energy crisis led to the creation of PURPA, which allowed states to encourage renewable and small generators. The 1992 Energy Policy Act expanded on this by allowing more competition to connect to the grid. Define PURPA Public Utility Regulatory Policy Act of 1978