Report to the Trust For Power Industry Restructuring PRIORITY PRICING OF ANCILLARY SERVICES
نویسنده
چکیده
This report describes the analysis that underlies the new design of the ancillary services markets adopted at the May 8 meeting of the Trust Advisory Committee. The main features are two-part bids, selection of resources based solely on capacity reservation bids, merit ordering of accepted resources in order of energy bids, and energy settlements based on prices in the real-time market. This design conforms to the principles of priority pricing set forth here. I show how the new design promotes overall efficiency and reduces gaming, besides its obvious simplification of settlements. I also comment on the measures required to maintain the competitiveness of these markets.
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