A bid solicitation and selection method for developing a competitive spot priced electric market

The electric utility industry is in the beginning throes of a transformation from a cost-based regulated structure to a more market-based less regulated system. Traditional unit commitment and economic dispatch methodologies can continue to provide reliable least-cost solutions, providing they are modified to accommodate a larger sphere of market participants. This paper offers a method for an entity such as an independent system operator (ISO) to solicit and evaluate bids for developing a spot priced electric market by replicating existing utility practices that are effective and efficient, while creating an open and equitable competitive marketplace for electricity.

[1]  R. H. Kerr,et al.  Unit commitment , 1966, Mathematical Programming for Power Systems Operation with Applications in Python.

[2]  Allen J. Wood,et al.  Power Generation, Operation, and Control , 1984 .

[3]  H. Stoll.  Least-Cost Electric Utility Planning , 1989 .

[4]  COORDINATION FOR COMPETITION IN AN ELECTRICITY MARKET , 1995 .

[5]  C.K. Pang,et al.  Optimal short-term thermal unit commitment , 1976, IEEE Transactions on Power Apparatus and Systems.

[6]  Hans B. Puttgen,et al.  The integration of nonutility generation and spot prices within utility generation scheduling , 1994 .

[7]  G. Sheblé,et al.  Application of auctions as a pricing mechanism for the interchange of electric power , 1995 .

[8]  J. S. Baylor,et al.  Communicating the value of dispatchability for non-utility generation projects , 1995 .

[9]  L. K. Kirchmayer,et al.  Economic Operation of Power Systems , 1958 .

[10]  Philip G. Hill,et al.  Power generation , 1927, Journal of the A.I.E.E..

[11]  Chris Marnay,et al.  Evaluating dispatchability features in competitive bidding (in power systems) , 1992 .

[12]  T. Gedra.  Optional forward contracts for electric power markets , 1994 .

[13]  A. D. Patton,et al.  Optimal Thermal Generating Unit Commitment , 1971 .

[14]  F. Schweppe.  Spot Pricing of Electricity , 1988 .

[15]  Gerald B. Sheblé,et al.  The implementation of an energy brokerage system using linear programming , 1992 .

[16]  H. H. Happ,et al.  Large Scale Hydro-Thermal Unit Commitment-Method and Results , 1971 .