Standard market design for ISO New England wholesale electricity market: an overview

This paper discusses the standard market design (SMD) for ISO New England electricity market. SMD comprises a congestion management methodology for revealing and assigning costs of supplying electricity across limited transmission facilities and a two-part market settlement structure consisting of a "day-ahead" and a "day-of" settlement that allows for greater financial certainty to market participants. Day-ahead market, real-time market, and financial transmission rights (FTR) auction are the key market elements of SMD. Based on the problem of security-constrained economic dispatch, an extended LMP model with transmission loss consideration will be presented. Details of functional design for the multi-settlement system and the FTR auction system will be discussed.