Power System Economics: Designing Markets for Electricity

Preface.

Acronyms and Abbreviations.

Symbols.

Part 1: Power Market Fundamentals.

Prologue.

Why Deregulate?

What to Deregulate.

Pricing Power, Energy, and Capacity.

Power Supply and Demand.

What Is Competition?

Marginal Cost in a Power Market.

Market Structure.

Market Architecture.

Designing and Testing Market Rules.

Part 2: Reliability, Price Spikes and Investment.

Reliability and Investment Policy.

Price Spikes Recover Fixed Costs.

Reliability and Generation.

Limiting the Price Spikes.

Value-of-Lost-Load Pricing.

Operating-Reserve Pricing.

Market Dynamics and the Profit Function.

Requirements for Installed Capacity.

Inter-System Competition for Reliability.

Unsolved Problems.

Part 3: Market Architecture.

Introduction.

The Two-Settlement System.

Day-Ahead Market Designs.

Ancillary Services.

The Day-Ahead Market in Theory.

The Real-Time Market in Theory.

The Day-Ahead Market in Practice.

The Real-Time Market in Practice.

The New Unit-Commitment Problem.

The Market for Operating Reserves.

Part 4: Market Power.

Defining Market Power.

Exercising Market Power.

Modeling Market Power.

Designing to Reduce Market Power.

Predicting Market Power.

Monitoring Market Power.

Part 5: Locational Pricing.

Power Transmission and Losses.

Physical Transmission Limits.

Congestion Pricing Fundamentals.

Congestion Pricing Methods.

Congestion Pricing Fallacies.

Refunds and Taxes.

Pricing Losses on Lines.

Pricing Losses at Nodes.

Transmission Rights.

Glossary.

References.

Index.