Uniform Pricing or Pay-as-Bid Pricing: A Dilemma for California and Beyond

Any belief that a shift from uniform to as-bid pricing would provide power purchasers substantial relief from soaring prices is simply mistaken. The immediate consequence of its introduction would be a radical change in bidding behavior that would introduce new inefficiencies, weaken competition in new generation, and impede expansion of capacity.

[1]  E. Kahn,et al.  A quantitative analysis of pricing behavior in California's wholesale electricity market during summer 2000 , 2001, 2001 Power Engineering Society Summer Meeting. Conference Proceedings (Cat. No.01CH37262).