Activity Rules for a Power Exchange

This paper studies the design of activity rules for a power exchange (PX). The suggested rules are summarized in Section 2 after their motivation is described in Section 1. They are developed in a practical form in subsequent sections, and collected together in Appendix A, along with several variants in Appendix B. Appendix C describes an alternative offer format that eliminates withdrawals. Appendix D describes the uniform-price double auction that is the principal alternative to the auction design studied here. Section 10 concludes with a list of unresolved issues.