Title :
Payment versus bid cost [The Business Scene]
Author :
Yan, Joseph H. ; Stern, Gary A. ; Luh, Peter B. ; Zhao, Feng
Author_Institution :
Southern California Edison, Los Angeles
Abstract :
This article summarizes the recent developments in the solution methodology of payment-cost minimization and the economic analysis of the two auction methods. Topics such as revenue adequacy implications are brought into discussion. Generally speaking, the research on the appraisal of the two auction methods is still at the early stages, and that a comprehensive study of the two auction methods is highly valuable for both researchers and industrial practitioners. This article can initiate more serious debate among researchers and stakeholders as to which objective should be used in ISO markets.
Keywords :
commerce; power markets; power system economics; ISO power markets; auction methods; bid cost minimization; economic analysis; independent system operator; payment cost; Costs; Councils; Economic forecasting; Electricity supply industry; Electricity supply industry deregulation; Fuel economy; ISO; Layout; Power generation economics; Production;
Journal_Title :
Power and Energy Magazine, IEEE
DOI :
10.1109/MPE.2007.915189