The electric industry has been restructured in much of North America and many regions around the world to expand the role of competition and markets, and reduce reliance on rate regulation, in governing the operation of the electric system and investment in electric power generation. A critical component of this restructuring is the energy and transmission pricing system used to support these competitive power markets.
This website contains links to papers and presentations discussing the evolution of restructured electricity markets and the development of seminal elements of the market design that has come to be widely accepted in North America. The links provide downloads of many unpublished work and references to published papers analyzing core issues in the implementation of competitive generation markets and financial transmission rights.
The purpose of this website is to provide a resource for information about markets implementing locational marginal pricing, or LMP pricing, the economic basis for the core ideas underlying these markets, and approaches to resolving detailed implementation issues. LMP pricing has emerged as the only energy and transmission system capable of sustaining non-discriminatory open access in ecentralized competitive generation markets. Because of the designed consistency between pricing and the reliable least cost security constrained dispatch of the transmission system, LMP pricing avoids the need for extensive reliance on command and control to maintain reliability in restructured electricity markets.