Spot Pricing of Electricity

1 Overview.- 1.1 Goal of Book.- 1.2 Three Steps to an Energy Marketplace.- 1.3 How Will Customers Respond?.- 1.4 Energy Marketplace Operation: A Developed Country.- 1.5 Energy Marketplace Operation: A Developing Country.- 1.6 Discussion of Chapter 1.- Supplement to Chapter 1: Summary of Issues.- Historical Notes and References: Chapter 1.- Notes.- I: The Energy Marketplace.- Preface to Part I: The Energy Marketplace.- 2 Behavior of Hourly Spot Prices.- 2.1 Definition of Hourly Spot Price.- 2.2 Components of Hourly Spot Prices.- 2.3 Operating Cost Components.- 2.4 Quality of Supply Components.- 2.5 Aggregated Network.- 2.6 Revenue Reconciliation Components.- 2.7 Buy-Back Rates.- 2.8 Expected Price Trajectories.- 2.9 Price Duration Curves.- 2.10 Customer Response.- 2.11 Discusion of Chapter 2.- Historical Notes and References: Chapter 2.- Notes.- 3 Energy Marketplace Transactions.- 3.1 Criteria for Choice of Transactions.- 3.2 Customer Classes.- 3.3 Price-Only Transactions.- 3.4 Price-Quantity Transactions.- 3.5 Long-Term Contracts.- 3.6 Optional and Custom-Tailored Transactions.- 3.7 Why No Demand Charge?.- 3.8 Relationship to Present-Day Transactions.- 3.9 Customer-Owned Generation: Avoided Costs.- 3.10 Special Customer Treatment.- 3.11 Wheeling Rates.- 3.12 Discussion of Chapter 3.- Historical Notes and References: Chapter 3.- Notes.- 4 Implementation.- 4.1 Energy Marketplace: Operation.- 4.2 Energy Marketplace: Planning.- 4.3 Customer: Operation.- 4.4 Customer: Planning.- 4.5 Calculation of Hourly Spot Prices.- 4.6 Utility: Operation.- 4.7 Utility: Planning.- 4.8 Regulatory Commission: Operation and Planning.- 4.9 Discussion of Chapter 4.- Historical Notes and References: Chapter 4.- Notes.- 5 A Possible Future: Deregulation.- 5.1 A Deregulated Energy Marketplace.- 5.2 Short-Term Operation and Control.- 5.3 Long-Term Operation and Planning.- 5.4 A Scenario.- 5.5 Discussion of Chapter 5.- Historical Notes and References: Chapter 5.- Notes.- II: Theory of Hourly Spot Prices.- 6 Generation Only.- 6.1 Generation Fuel and Variable Maintenace: ?(t).- 6.2 Generation Quality of Supply, ?QS(t): Cost Function Approach.- 6.3 Generation Quality of Supply, ?QS(t): Market Clearing Approach.- 6.4 Generation Self-Dispatch.- 6.5 Multiple Time Periods.- 6.6 Discussion of Chapter 6.- Historical Notes and References: Chapter 6.- Notes.- 7 Generation and Network.- 7.1 Problem Formulation: Real Power Only.- 7.2 General Result.- 7.3 Network Loss: ?L,k(t).- 7.4 Network Maintenance: ?M,k(t).- 7.5 Network Quality of Supply: ?QS,k(t).- 7.6 Two-Bus Example.- 7.7 Price Difference Across a Line.- 7.8 Customer-Owned Generation: Self-Dispatch.- 7.9 Aggregated Networks.- 7.10 Reactive Energy and Voltage Magnitudes.- 7.11 Discussion of Chapter 7.- Historical Notes and References: Chapter 7.- Notes.- 8 Revenue Reconciliation.- 8.1 Modify Spot Prices: Aggregate Reconciliation.- 8.2 Buy-Back Rate.- 8.3 Surcharge-Refund.- 8.4 Revolving Fund.- 8.5 Modify Spot Prices: Decomposed Reconciliation.- 8.6 Fixed Charges.- 8.7 Nonlinear Pricing.- 8.8 Revenue Neutrality.- 8.9 Discussion of Chapter 8.- Historical Notes and References: Chapter 8.- Notes.- 9 Spot Price Based Rates.- 9.1 Predetermined Price-Only Transactions.- 9.2 Price-Quantity Transactions.- 9.3 Long-Term Contracts.- 9.4 Special Customer Contracts.- 9.5 Wheeling Rates.- 9.6 Discussion of Chapter 9.- Historical Notes and References: Chapter 9.- Notes.- 10 Optimal Investment Conditions.- 10.1 Overall Problem Formulation.- 10.2 Generator Investment Conditions.- 10.3 Customer Investment Conditions.- 10.4 Transmission Investment Conditions.- 10.5 Revenue Reconciliation for Optimum Systems.- 10.6 Long-Run Versus Short-Run Marginal Cost Pricing.- 10.7 Discussion of Chapter 10.- Historical Notes and References: Chapter 10.- Notes.- References.- Annotated Bibliography.- Appendices.- A Power System Analysis and Control.- A.1 Network Flows.- A.2 Local Controllers.- A.3 Mathematical Models for System Dynamics.- A.4 Power System Dynamics.- Further Reading.- Notes.- B Power System Operation.- B.1 Short-Term Load Forecasting.- B.2 System Economics.- B.3 System Security.- B.4 Automatic Generation Control (AGC).- B.5 Interconnected Systems.- Further Reading.- Notes.- C Power System Planning.- C.1 Multiple Attribute Decision Making Under Uncertainty.- C.2 Long Range Load Forecasting Models.- C.3 Production Cost Models.- C.4 Financial Models.- C.5 Generation Expansion Programs.- C.6 Network Expansion Programs.- C.7 Feedback Couplings.- Further Reading.- Notes.- D DC Load Flow.- D.1 General Relationships.- D.2 A Potpourri of Results.- D.3 Three-Bus Example.- Notes.- E Customer Response Model Structures.- E.1 Single Period.- E.2 Multiple Period.- Notes.- F FAPER.- F.1 Basic Concepts.- F.2 FAPER Designs.- F.3 Variations on the Basic Concept.- F.4 Analysis of Multiple FAPER Response.- F.5 Incentives to Install FAPERS.- F.6 Discussion.- G Expected Behavior of Spot Prices.- G.1 Introduction.- G.2 24-Hour Trajectories.- G.3 Price Duration Curves.- G.4 Impact of Customer Response on Variable Energy Costs.- H Interchange of Derivative and Expectation Operators.