TY - GEN
T1 - Management of uncertainty in supply contract auctions
AU - Gross, G.
AU - Negrete-Pincetic, M.
PY - 2008
Y1 - 2008
N2 - Uncertainty management becomes a key challenge in the restructured electricity industry as the implementation of market processes increases the sources of uncertainty beyond those faced in the former vertically integrated industry. We focus on the assessment and management of uncertainty in the area of contracting for short- and mid-term supply contracts. Such contracts are drawn up with the successful sellers in an auction held to determine the lowest priced supplies to meet the requirements of various classes of load. The primary focus of the analysis is the auction design product definition issues and their impacts on the resulting outcomes. The high prices attained in the 2006 Illinois Electricity Auction reflect the impacts of shifting uncertainty from the distribution companies to the sellers of the needed electricity supply. We assess the impacts and provide the insights we obtain to improve uncertainty management in shortand mid-term contracting for electricity.
AB - Uncertainty management becomes a key challenge in the restructured electricity industry as the implementation of market processes increases the sources of uncertainty beyond those faced in the former vertically integrated industry. We focus on the assessment and management of uncertainty in the area of contracting for short- and mid-term supply contracts. Such contracts are drawn up with the successful sellers in an auction held to determine the lowest priced supplies to meet the requirements of various classes of load. The primary focus of the analysis is the auction design product definition issues and their impacts on the resulting outcomes. The high prices attained in the 2006 Illinois Electricity Auction reflect the impacts of shifting uncertainty from the distribution companies to the sellers of the needed electricity supply. We assess the impacts and provide the insights we obtain to improve uncertainty management in shortand mid-term contracting for electricity.
KW - Electricity auctions
KW - Electricity markets
KW - Electricity prices
KW - Operational planning
KW - Power system economics
KW - Uncertainty management
UR - http://www.scopus.com/inward/record.url?scp=52349110359&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=52349110359&partnerID=8YFLogxK
U2 - 10.1109/PES.2008.4596754
DO - 10.1109/PES.2008.4596754
M3 - Conference contribution
AN - SCOPUS:52349110359
SN - 9781424419067
T3 - IEEE Power and Energy Society 2008 General Meeting: Conversion and Delivery of Electrical Energy in the 21st Century, PES
BT - IEEE Power and Energy Society 2008 General Meeting
T2 - IEEE Power and Energy Society 2008 General Meeting: Conversion and Delivery of Electrical Energy in the 21st Century, PES
Y2 - 20 July 2008 through 24 July 2008
ER -