Pondering proper PAR pricing

We have examined the potential impacts of PAR devices on system LMPs. Since fixed-offset and fixed-flow controls impact the incremental capabilities of the network differently, then in theory they should impact the LMPs differently. We demonstrate this effect through examples. Depending on topology, limits, and PAR placement, the relative values for the LMPs will be vary. In some cases the fixed-flow operation may result in lower LMPs, and in other cases the fixed-offset will result in lower LMPs. We have also briefly noted that there can be advantages to operating the PAR in a hybrid mode in which the phase angle may be set to control fixed-offset, fixed-flow, or even fixed-flow on a different path, depending on system conditions.