Regression Analysis of Electric Power Price Using Meteorological Information

The deregulation of electric power industries is now proceeding around the world. Many electric power markets are operated in many deregulated areas. We have already investigated the electric power prices of the day-ahead markets by the regression equations, such as California, PJM, NEMMCO, and so on. The simple regression equations are composed in our analysis, of which the dependent variable is the power price and the explanatory variables are the power demand and the power price of 24 hours ago. To improve the decision factor of the regression equations, we use the meteorological parameter as the new explanatory variables. The new regression equations are applied to the price data of New England market. Furthermore, because the decision factors are not good especially in the winter seasons, we introduce a ldquocold temperaturerdquo as the new explanatory variables. As the results, the decision factors are fairly improved.