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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...
This paper discusses the demand side impact on electricity market. The demand reduction of common commodities usually leads to reduced price, and in response to the high price, demand side management may be a good price mitigation mechanism for most commodities. However, in the electricity market, electricity demand has complicated interactions with the electric network, and the demand at different...
This paper proposes a new method for allocating transmission loss in mixed pool and bilateral markets. The proposed method is based on an actual loss formula. In addition, the concept that the more the power is transferred, the larger the losses it should be responsible for is used. In this paper, power loss occurring in the pool market will be compensated by the representative generator and the loss...
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