State estimation for the detection of market parameters

Deregulation of electric utilities has led to a new competitive regime for utilities. In traditional systems, the main objective is to estimate voltages and flows. Estimators that include the ability to determine system parameters along with system conditions have been developed. In the evolving deregulated environment there are a host of new estimation needs. The various costs of the participants, estimation of the degree of market power, estimation of the price elasticities of the participants, and estimation of the volatilities of prices. This paper addresses two estimation needs. It defines the problem of estimation system status based on the knowledge of published PTDFs (power transfer distribution factors) by describing a new procedure for estimating parameters. It also reformulates a previously presented but not much publicized method for estimating the cost elasticities of generators.