Application of auctions as a pricing mechanism for the interchange of electric power

Author

Post, D.L. ; Coppinger, S.S. ; Sheble, G.B.

Author_Institution

Interstates Electric & Eng. Co. Inc., Sioux Center, IN, USA

Volume

10

Issue

3

fYear

1995

fDate

8/1/1995 12:00:00 AM

Firstpage

1580

Lastpage

1584

Abstract

The expected move to a market-based electric power industry will significantly change electric utility operations. These changes will fundamentally alter the pricing of electric power. How this pricing will be accomplished is a key issue. Traditionally, embedded cost based methods have been used. Spot-pricing has received attention as a possible approach in a market-based electric power environment. Another market-based approach is the use of auctions. This paper presents the application of a sequential sealed-bid and sealed-offer auction to the pricing of electric power by using linear programming

Keywords

costing; economics; electricity supply industry; linear programming; power transmission; electric power interchange; embedded cost based methods; linear programming; market-based electric power industry; pricing mechanism; sequential sealed-bid auction; sequential sealed-offer auction; Costs; Gas industry; Linear programming; Natural gas; Natural gas industry; Power engineering and energy; Power industry; Pricing; Senior members; Student members;

fLanguage

English

Journal_Title

Power Systems, IEEE Transactions on

Publisher

ieee

ISSN

0885-8950

Type

jour

DOI

10.1109/59.466485

Filename

466485