A Review of ISO New England's Proposed Market Rules
Peter Cramton () and
Robert Wilson ()
Papers of Peter Cramton from University of Maryland, Department of Economics - Peter Cramton
This report reviews the proposed rules for restructured wholesale electricity markets in New England. We review the market rules, both individually and collectively, and identify potential problems that might limit the efficiency of these markets. We examine alternatives and identify the key tradeoffs among alternative designs. We believe that the wholesale electricity market in New England can begin on December 1, 1998. However, improvements are needed for long-run success. We have identified four major recommendations: 1. Switch to a multi-settlement system. 2. Introduce demand-side bidding. 3. Adopt location-based transmission congestion pricing, especially for the import/export interfaces. 4. Fix the pricing of the ten minute spinning reserves.
Keywords: Auctions; Multiple Object Auctions; Electricity Auctions (search for similar items in EconPapers)
JEL-codes: D44 L12 L94 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env, nep-mic and nep-tid
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