Campus Units

Economics, Electrical and Computer Engineering, Mathematics

Document Type

Conference Proceeding

Conference

2009 IEEE Power & Energy Society General Meeting

Publication Version

Submitted Manuscript

Link to Published Version

http://dx.doi.org/10.1109/PES.2009.5275503

Publication Date

2009

Journal or Book Title

Proceedings of the IEEE Power and Energy Society General Meeting

DOI

10.1109/PES.2009.5275503

Conference Title

2009 IEEE Power & Energy Society General Meeting

Conference Date

July 26-30, 2009

City

Calgary, Alberta, CA

Abstract

Abstract: Although Locational Marginal Pricing (LMP) plays an important role in many restructured wholesale power markets, the detailed derivation of LMPs as actually used in industry practice is not readily available. This lack of transparency greatly hinders the efforts of researchers to evaluate the performance of these markets. In this paper, different AC and DC optimal power flow (OPF) models are presented to help understand the derivation of LMPs. As a byproduct of this analysis, the paper provides a rigorous explanation of the basic LMP and LMP-decomposition formulas (neglecting real power losses) presented without derivation in the business practice manuals of the U.S. Midwest Independent System Operator (MISO).

Comments

© 2009 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works. DOI: 10.1109/PES.2009.5275503

Copyright Owner

IEEE

Language

en

File Format

application/pdf

Published Version

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Article Location

 
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