【正文】
etc. Under deregulation circumstance, power system security faces more threats than ever. Due to the potential dynamic power trading, the reactive power requirements are also dynamically changing. Some generation units are inefficient in generating real power and are not petitive on power market. However, they are necessary to stay online in order to maintain system voltage. This type of mustrun units causes few arguments in the regulated power industry. Not all mustrun units must be online all the time. Depending load and operati ng conditions, some of them can be offline but must be standby and some of them must be online only under certain conditions. Most generators have a limitation of minimum real power output and can not simply operate as synchronous condensers. Their operating costs should include real power cost. Ⅱ .REACTIVE POWER COMPENSATION ATDISTRIBUTION LEVEL Main purposes of reactive power pensation at load sites are to reduce long distance transmission of reactive power and reduce the reactive power flow within distribution work, thus reduce MW loss and voltage dip. Reactive power itself is sort of energy swapping between reactive element and capacitive element and is not consumed for pure reactive and capacitive elements. If most of reactive power load can be supplied at load sites, the amount of reactive power flow in either transmission work or distribution work can be reduced. Fig. 1 is a 12bus sample system which is a small piece of distribution work of New York City. The loads and shunt pensations show n in the figure are three phase total. Balanced threephase load is assumed in the calculation. Four pensation cases are presented to illustrate the effects on MW loss and voltage dip. All four cases are under same load conditions as show n in Fig. 1 except that the reactive power pensations are different: Case 1 : Without reactive power pensation. Case 2: Reactive power pensations are shown in Fig. 1. Case 3: Total reactive power pensation of case 2(1380 KVAR) is made at Bus