SGER: The Engineering Econometrics of Market Power in Electric Power Systems

许多经过改革的电力市场的平均价格高，价格波动大，引起了人们对发电商滥用市场支配力的关切。与此同时，发电商不再披露根据条例随时可以获得的关于发电真实成本的信息。因此，将实际价格与竞争性价格进行比较，作为确定市场支配力的潜力或使用的基础，已变得不切实际。该提案是关于开发一种新的指数或指标，能够评估发电商的市场力量潜力，而不依赖于不可用的信息或数据。与经济学家使用的其他指数不同，新指数包含有关互连网络的工程信息，其当前拓扑结构，约束和限制。如果该指数是创新的，因为它似乎是，它也应该是相关的，以确定传输瓶颈的国家利益，并能够帮助确定如何缓解他们，随着电力企业的重组，从监管到市场，如何监测和评估的性能是必不可少的。关于标准市场设计的新FERC NOPR呼吁市场监测和市场缓解程序的想法。几乎所有的指标在文献中忽略了市场运作对工程的影响，无论是规划和运营。这里提出的新指标在概念上是创新的，如果工作成功，它将为电力行业提供一种新的方式来评估性能，因此，将对未来电力系统的监督产生重大影响。然而，这项工作是高风险的，因为虽然指数看起来很有吸引力，但计算工具和真实的时间计算所需的数据可能会带来无法忍受的限制。目前，工程信息并不是电力市场评估的一部分，充其量只是一个重大疏忽。 成功地将这些信息纳入一个敏感性为基础的措施将有更广泛的影响，提高经济学家和工程师对这类信息的重要性的理解。这项工作的结果将在各种跨学科会议上提出。这些信息也将被整合到课程ECE 551/AEM 655电力系统工程和经济学，这是一门由PI（工程师）和Timothy Mount教授（经济学家）共同教授的课程。

The high average prices and high volatility of prices in many restructured markets for electricity have raised concerns about the abuse of market power by generators. At the same time, information about the true costs of generation, that was readily available under regulation, is no longer disclosed by generators. Hence, it is becoming impractical to use a comparison of actual prices with competitive prices as the basis for identifying either the potential for or the use of market power. This proposal is about developing a new index or metric capable of evaluating a generator's potential for market power that doesn't rely on unavailable information or data. Unlike other indices in use by economists, the new index carries with it engineering information about the interconnecting network, its current topology, constraints and limitations. If the index is as innovative as it appears to be, it should also be relevant to identifying transmission bottlenecks of National interest and be able to assist in identifying ways to relieve them.With the restructuring of the electric power business from regulation to markets, ways to monitor and evaluate the performance are essential. The new FERC NOPR on Standard Market Design calls for ideas on market monitoring as well as market mitigation procedures. Virtually all of the metrics in the literature ignore the effects of market operation on the engineering, both planning and operations. The new metric suggested here is innovative in concept and, if the work is successful, it will provide the electric power industry with a new way to evaluate performance and thus, will have a substantial impact on the oversight of future electric power systems. Yet, the work is high risk because, while the index looks attractive, the computational tools and the data needed to compute it in real time are may impose intolerable limits. At present engineering information is not a part of electric power market evaluations, a major oversight at best. Successfully incorporating this information into a sensitivity-based measure will have thebroader impact of enhancing the understanding of the importance of this type of information by economists and engineers alike. The results of this work will be presented at various interdisciplinary conferences. The information will also be integrated into the course ECE551/AEM655 Power Systems Engineering and Economics, a course co-taught by the PI, an engineer, and Professor Timothy Mount, an economist.