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A common practice for the Ex Post LMP calculation at a number of US ISOs uses a small constant range, typically from -2.0 MW to +0.1 MW, as each generator's lower and upper bounds. However, this paper shows that this common practice lacks theoretic justification and may lead to inconsistent results. For example, if the ex post dispatch results are identical to the ex ante dispatch schedules, it is...
A common practice for the Ex Post LMP calculation at a number of U.S. ISOs uses a small constant range, typically from -2.0 to +0.1 MW, as each generator's lower and upper bounds. This paper shows that this is an unjustified practice as the marginal units and LMP may change if the bounds are changed. A simple yet effective improvement is proposed.
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