A stepwise regression method for forecasting net interchange schedule

The net interchange schedule (NIS) is the sum of the transactions (MW) between an Independent System Operator (ISO)/ Regional Transmission Organization (RTO) and its neighbors. Effective forecasting of the submitted NIS can improve grid operation efficiency. This paper presents a stepwise regression method for forecasting NIS. The stepwise regression method uses significance analysis to identify the most influential explanatory variables. Identifying the most influential explanatory variables can reduce model order and lead to better and faster prognostics. The performance of the stepwise regression method is evaluated using the field measurement data from PJM Interconnection (RTO).