equilibrium resource management with altruistic overlapping generations abstract we imbed a classic fishery model where the optimal policy follows a most rapid approach path to a steady state into an overlapping generations setting the current generation discounts future generations utility flows at a rate possibly different from the pure rate of time preference used to discount their own utility flows the resulting model has non constant discount rates leading to time inconsistency the unique markov perfect equilibrium to this model has a striking feature provided that the current generation has some concern for the not yet born the equilibrium policy does not depend on the degree of that concern

global warming and hyperbolic discounting the use of a constant discount rate to study long lived environmental problems such as global warming has two disadvantages the prescribed policy is sensitive to the discount rate and with moderate discount rates large future damages have almost no effect on current decisions time consistent quasi hyperbolic discounting alleviates both of these modeling problems and is a plausible description of how people think about the future we analyze the time consistent markov perfect equilibrium in a general model with a stock pollutant the solution to the linear quadratic specialization illustrates the role of hyperbolic discounting in a model of global warming

marginal loss modeling in lmp calculation this paper discusses the pricing of marginal transmission network losses in the locational marginal pricing approach recently deployed in the iso new england iso ne standard market design smd project implemented by alstom s t d energy automation and information eai business the traditional loss model is studied and a new model is proposed the new model achieves more defendable and predictable market clearing results by introducing loss distribution factors to explicitly balance the consumed losses in the lossless dc power system model the distributed market slack reference is also introduced and discussed the lmp components produced by the two models are studied and compared under changes in slack reference numerical examples are presented to further compare the two models

investment under uncertainty and time inconsistent preferences abstract while standard real options models assume that agents possess a constant rate of time preference there is substantial evidence that agents are impatient about choices in the short term but are patient when choosing between long term alternatives we extend the real options framework to model the investment timing decisions of entrepreneurs with time inconsistent preferences the impact on investment timing depends on such factors as whether entrepreneurs are sophisticated or naive in their expectations regarding their future time inconsistent behavior and whether the payoff from investment occurs all at once or over time the model is extended to the case of a competitive equilibrium

advanced pricing in electrical systems i theory this paper sets forth a comprehensive theory for the real time pricing of electricity that includes selected ancillary services and extends the theory to incorporate constraints on power quality and environment impact that often influence the operation of a power system this paper is part i of a two paper set it sets forth the mathematical development of the extended model for real time pricing the formulation is novel in that it combines the dynamic equations for load frequency control with the static equations of a constrained optimal power flow part ii derives optimal nodal specific real time prices for both real and reactive power the prices derived include additive premia or opportunity costs reflecting the effects of voltage regulation maintenance of generation and transmission reserves regulation of frequency and tie line flows removal and or control of power harmonics and others

a comprehensive assessment of the evolution of financial transmission rights financial transmission rights ftrs are complementary to the locational marginal pricing of energy the basic aim of the ftr mechanism is to guard forward contracts from uncertain congestion charges ftrs are also useful to individual generators and loads for selling and buying power respectively at the prices of other locations the concept has evolved encompassing many features such as a simultaneous feasibility test various ways to conduct auctions and allocations and secondary trading ftrs also have a close relation to market power and transmission investment this paper reviews most of the landmark research papers on the evolution of the ftr concept it reports a comprehensive assessment of various facets of ftrs and allied issues financial transmission rights and flowgate rights fgrs are compared the concept of long term ftrs is discussed the paper also touches upon future proposals in this area

unbundling of transmission and ancillary services ii cost based pricing framework for pt i see ibid vol 12 no 2 1997 this paper presents a systematic framework for pricing transmission and ancillary services in competitive power markets this framework is based on the recovery of fixed and operating costs and it meets the traditional revenue requirements it is practical feasible easy to implement and to regulate it can be implemented with minimum transition cost this network flow dependent and nondiscriminatory framework is based on the decomposition approach presented in part i of this paper this decomposition forms an essential part of the proposed framework for usage based recovery of the fixed and operating costs the transmission system related fixed cost component is recovered from all transactions based on percentage utilization of the transmission system equipment the charge is based on the actual network power flows the ancillary service charge for a given transaction can be computed as the sum of the costs incurred at secondary generation for compensating the imbalance caused by that specific transaction the path providing function of the transmission grid is viewed as a true monopolistic service its pricing is cost based and charge for its use is usage based the generation based ancillary service supply can be made competitive its pricing is market based and charge for it is usage based a global overview of the proposed pricing strategy is analyzed in the context of other alternatives especially cost based methods a numerical example on a five bus system is given to illustrate the use of this pricing strategy

anomalies in intertemporal choice evidence and an interpretation research on decision making under uncertainly has been strongly influenced by the documentation of numerous expected utility eu anomalies behaviors that violate the expected utility axioms the relative lack of progress on the closely related topic of intertemporal choice is partly due to the absence of an analogous set of discounted utility du anomalies we enumerate a set of du anomalies analogous to the eu anomalies and propose a model that accounts for the anomalies as well as other intertemporal choice phenomena incompatible with du we discuss implications for savings behavior estimation of discount rates and choice framing effects

calculating short run marginal costs of active and reactive power production proper pricing of active and reactive power is an important issue for economic and secure operations of power systems in an open transmission access ota environment this paper presents a flexible formulation for this purpose the proposed formulation identifies an important price component for reactive power which is fundamentally different from those existing in the literature this makes the pricing of reactive power more understandable the proposed approach is efficient for real time application and allows for carrying out active and reactive power pricing simultaneously or independently through the use of the decoupled optimal power flow formulation price signals derived from this approach are quite meaningful from an engineering point of view in addition the proposed approach can be easily extended to evaluate nugs and wheeling transactions the paper includes test results on the 30 and 118 bus ieee standard systems

wheeling rates of reactive power flow under marginal cost pricing wheeling is the transmission of electrical power and reactive power from a seller to a buyer through a transmission network owned by a third party the wheeling rate is an area of intense research in view of increased deregulation this paper uses a wheeling rate based on marginal cost pricing and implemented using a modification of the optimal power flow opf a case study based on the ieee 30 bus system illustrates the magnitudes and ranges that wheeling rates might have in different circumstances special attention is paid to reactive wheeling which cannot be analyzed with a dc model used by previous authors the ratio of wheeling rates between real and reactive flow shows the importance of the latter the paper also discusses the significance of this for the trade off between paying for reactive wheel or investing in compensating plant

singular dividend optimization for a linear diffusion model with time inconsistent preferences abstract with the advancement of behavioral economics the use of exponential discounting for decision making in neoclassical economics has been questioned since it cannot provide a realistic way to explain certain decision making behavior the purpose of this paper is to investigate strategic decision making on dividend distribution policies of insurance companies when the management adopts a more realistic way for discounting namely stochastic quasi hyperbolic discounting the use of this more realistic way for discounting is motivated by some recent developments in behavioral economics a game theoretic approach is adopted to establish economic equilibrium results namely subgame perfect markov equilibrium strategies it is shown that 1 under certain mild technical conditions the barrier strategy with an optimal barrier which is widely used in the traditional approach to optimal dividend problems is a perfect markov equilibrium strategy 2 the optimal barrier is lower than the barrier of an optimal strategy obtained from the respective time consistent optimal dividend problem and 3 the solution based on the barrier strategy does not exist in some situations

reliability differentiated pricing of spinning reserve this paper derives the spinning reserve pricing policy implied by the reliability differentiated pricing model and illustrates the importance of such a pricing policy the purchase of additional spinning reserve capacity at the prices derived leads to benefits for the customers through reduced real and reactive power prices and improved reliability of the power system and for the power system as a whole through reduced societal costs and less investment in system reinforcements the magnitudes and behavior of the optimal prices for real and reactive spinning reserve are illustrated in two case studies one case study determines reliability differentiated prices of real and reactive power for a sample four area power system with and without spinning reserve purchase and the optimal purchase prices for both real and reactive power spinning reserve capacities the results of this case study show that when reliability differentiated pricing is extended to both real and reactive power reserve it leads to benefits for customers and the power system as a whole a second case study examines the locational dependence of optimal prices for real and reactive reserves on the operating status of equipment in the 24 bus ieee reliability test system it is concluded that even small amounts of reliable reserve capacity purchase from neighboring electric utilities can improve the reliability of the power system and lower expected real and reactive power prices leading to gains in social welfare

dcopf based marginal loss pricing with enhanced power flow accuracy by using matrix loss distribution on current days many of the power markets are adopting the practice of marginal loss pricing the dc optimal power flow dcopf model is still mostly used for the purpose of market clearing owing to its simplicity robustness and higher speed of convergence within the dcopf framework transmission line losses are represented as additional external loads on the system in the classical dcopf model of marginal loss pricing as implemented in the new england market the aggregated network loss is distributed over the system nodes in a fixed ratio to gain more design flexibility in the distribution of system losses a matrix loss distribution mld framework is developed in this paper maintaining compatibility with financial transmission rights in mld each individual line is considered separately for the purpose of loss distribution the ratio in which the power loss in a certain line is distributed can be different from that in which the power loss in another line is distributed the additional design flexibility thus obtained assists in making a more accurate representation of the power flow the benefit of mld is illustrated through a case study an energy reference independent application of mld is also suggested

the axiomatic approach to three values in games with coalition structure we present a unified framework for a broad class of values in transferable utility games with coalition structure including the owen coalitional value and two weighted versions with weights given by the size of the coalitions we provide three axiomatic characterizations using the properties of efficiency linearity independence of null coalitions and coordination with two versions of balanced contributions inside a coalition and weighted sharing in unanimity games respectively

r d investment under time inconsistent preferences abstract we extend the real options model of r d by incorporating time inconsistent preferences we show that time inconsistent preferences can lead to both under investment and over investment in r d which depends on the magnitude of technological uncertainty when the technological uncertainty is low the sophisticated entrepreneurs exercise earlier than the time consistent entrepreneur however the sophisticated entrepreneurs invest later when the technological uncertainty is high

optimal lmp decomposition for the acopf calculation the objective of this work is to design a suitable rule for the energy reference selection in the ac optimal power flow acopf based locational marginal price lmp calculation in the case of the acopf model the congestion component of the lmp vector exhibits strong dependence on the energy reference this in turn makes the hourly values of financial transmission rights ftrs to be reference dependent and thus is a source of dispute in order to resolve this dispute a direct optimization framework is developed in this work exploring the interrelationship between the congestion components of locational marginal prices at individual buses the objective function and the constraints of this optimization model are carefully designed looking at the true motive of the lmp decomposition at the same time necessary attention is paid so as to ensure revenue adequacy in the ftr settlement the optimization problem that is ultimately to be solved is a simple quadratic programming problem with only one variable and two constraints the effectiveness of the proposed methodology is verified through a case study on a modified ieee 30 bus system the framework developed also unveils several interesting features of the lmp components that were under cover until now

running a more complete market with the slp iv acopf the acopf is at the core of competitive electricity market design it is the only ac based algorithm that simultaneously co optimizes real and reactive power dispatch for steady state operations on ac power systems in practice independent system operators isos oversimplify the physical problem and settle the markets on locational marginal price lmps based on real power but do not price reactive power dispatch or voltage control this work proposes a market dispatch and pricing procedure based on the acopf to provide a more complete pricing mechanism we formulate the dual problem of the slp iv acopf as shown in 1 which is a successive linear program shown to solve the acopf to an acceptable quality of convergence to a best known solution with linear scaling of computational time in proportion to network size therefore the dual problem is also a linear program as a result the marginal value pricing of the optimal solution to the dual problem supports the market dispatch due to strong duality i e this solution technique results in a revenue adequate and more complete market design furthermore we show how to distribute the complete real time market settlements the analysis includes a direct comparison to dcopf based approaches similar to those applied in current iso markets

sensitivity based security constrained opf market clearing model this paper proposes a novel technique for representing system security constraints that properly include voltage stability limits in the operation of competitive electricity markets the market clearing algorithm is modeled as a voltage stability constrained optimal power flow opf problem while the distance to the closest critical power flow solution is represented by means of a loading parameter and evaluated using a continuation power flow cpf technique sensitivities obtained at the opf step are used to estimate power directions for the cpf method while the cpf analysis provides the loading parameter to be used in the opf problem based on an n 1 contingency criterion the opf and the cpf steps are repeated until the maximum loading parameter is found thus providing optimal solutions considering both proper market conditions and security margins two benchmark systems with both supply and demand bidding are used to illustrate and test the proposed technique

energy and reserve pricing in security and network constrained electricity markets this paper analyzes some unresolved pricing issues in security constrained electricity markets subject to transmission flow limits although the notion of separate reserve types as proposed by ferc can be precisely and unambiguously defined when transmission constraints are active the very existence of separate reserve prices and markets is open to question when the prices are based on marginal costs instead we submit here that the only products whose marginal costs can be separately and uniquely defined and calculated are those of energy and security at each node thus under marginal pricing at any given network bus all scheduled reserve types should be priced not at separate rates but at a common rate equal to the marginal cost of security at that bus furthermore we argue that nodal or area reserves cannot be prespecified but must be obtained as by products of the market clearing process simulations back up these conclusions

the behavioral life cycle hypothesis self control mental accounting and framing are incorporated in a behavioral enrichment of the life cycle theory of saving called the behavioral life cycle blc hypothesis the key assumption of the blc theory is that households treat components of their wealth as nonfungible even in the absence of credit rationing specifically wealth is assumed to be divided into three mental accounts current income current assets and future income the temptation to spend is assumed to be greatest for current income and least for future income considerable empirical support for the blc theory is presented primarily drawn from published econometric studies

risk based locational marginal pricing and congestion management this paper develops a new electricity market clearing mechanism called risk based locational marginal pricing rlmp the rlmp is derived from the risk based security constrained economic dispatch model where risk is modeled to capture the system s overall security level compared to the traditional locational marginal pricing lmp which is composed of three components energy congestion and loss the rlmp consists of an additional risk component the risk component is a price signal to reflect the system s overall security level this paper discusses the features of rlmp and analyzes its benefits over traditional lmps the proposed concept and method are illustrated on a six bus system and the wecc 240 bus system

an energy reference bus independent lmp decomposition algorithm the volatility of the price of electricity in a locational marginal price lmp market makes it necessary to introduce financial price risk hedging instruments the congestion related and marginal loss related revenue surpluses collected by the regional transmission operator rto are proposed to be redistributed to market players it is important to be able to correctly decompose the lmp into its congestion and marginal loss components which are critical for the valuation and settlement of these financial instruments a new energy reference bus independent lmp decomposition model using an ac optimal power flow opf model is presented to overcome the reference bus dependency disadvantage of the conventional approach the marginal effect of the generators output variation with respect to load variation are used as the basis of this decomposition model the theoretical derivation and a proof are given the new model achieves a set of reference bus independent results an example is presented comparing the new model with the conventional model

self coordination in time inconsistent stochastic decision problems a planner doer game framework abstract time inconsistency has been a thorny issue in many economic and financial decision making problems especially when risk measures are involved in performance criteria we develop in this paper a two tier planner doer game framework with self coordination by aligning the global interest of the planner and the local interests of the doers by applying suitable penalty functions a degree of internal harmony measured quantitatively by the expected cost of self coordination can be achieved by the self coordination policy we establish an axiom system for modified preferences under which the self coordination policy can be obtained by solving a corresponding optimization problem we then apply our game framework successfully in dynamic mean variance portfolio selection

optimal dividend strategies with time inconsistent preferences abstract this paper studies the optimal dividend strategies of an insurance company when the manager has time inconsistent preferences we consider the problem for a naive manager and a sophisticated manager and analytically derive the optimal dividend strategies when claim sizes follow an exponential distribution our results show that the manager with time inconsistent preferences tends to pay out dividends earlier than her time consistent counterpart and that the sophisticated manager is more inclined to pay out dividends than the naive manager furthermore we extend these results to the case with claim sizes following a mixed exponential distribution and provide a numerical analysis to reveal the sensitivity of the optimal dividend strategies to changes in the premium claims and surplus volatility

endogenous formation of coalitions the formation of coalitions is a fundamental problem in game theory by a coalition is meant a group of players e g economic or political agents which decide to act together as one unit relative to the rest of the players this includes the instances of syndicates unions cartels blocks political parties parliamentary coalitions etc we would like to emphasize that forming a coalition does not eliminate the individual players as decision makers in all interactions with the other players coalition members act as one unit it may be useful to think of a representative agent taking their place 2 however this arrangement will continue only as long as each player finds it desirable to act this way further bargaining occurs among the members of each coalition on how to divide what they obtained together thus the existence of coalitions implies that the interactions among the players will be conducted on two levels first among the coalitions and second within each coalition most of the existing models in economics and game theory assume that the coalition structure is given exogenously instead we try here to obtain it as an endogenous outcome of our model namely we want to be able to predict which coalitions will in fact form in each given situation 3 our theory combines two kinds of game theoretic concepts value and stability the basic idea is first to evaluate the players prospects in the various coalition structures and then based on these values to find which ones are stable we will call this value coalition structure value or cs value for short the reason we are considering coalition structures i e partitions of the set of players into disjoint coalitions rather than just coalitions is that in general players may find it to their advantage to join forces in some situations and to act separately in others all depending on the way the other participants are organized this implies that both the value and the stability concepts should depend on the entire coalition structure the cs value we analyze in this paper was first developed by owen 7

multiobjective optimization for pricing system security in electricity markets this paper proposes a novel technique for representing system security in the operations of decentralized electricity markets with special emphasis on voltage stability an interior point method is used to solve the optimal power flow problem with a multiobjective function for maximizing both social benefit and the distance to maximum loading conditions a six bus system with both supply and demand side bidding is used to illustrate the proposed technique for both elastic and inelastic demand and a 129 bus test system that models the italian hv transmission network is used for testing the practical applicability of the proposed method the results obtained show that the proposed technique is able to improve system security while yielding better market conditions through increased transaction levels and improved locational marginal prices throughout the system

on coalitional semivalues in this paper we propose a characterization of the coalitional value for transferable utility games owen 1977 and we define and study coalitional semivalues which are generalizations of semivalues dubey neyman and weber 1981

consumption savings decisions with quasi geometric discounting we study the consumption savings problem of an infinitely lived rational consumer who has time inconsistent preferences in the form of quasi geometric discounting the consumer operates a weakly concave production function and must simply divide current resources into current consumption and savings there is no uncertainty a solution to the consumer s problem is a subgame perfect equilibrium of a dynamic game between the consumer s successive selves we show that this game has a continuum of equilibria in stationary markov strategies not only is the stationary point of the consumer s asset holdings indeterminate but each stationary point has a continuum of dynamic paths converging to it the savings policy rules underlying these dynamic paths are step functions

decomposition model and interior point methods for optimal spot pricing of electricity in deregulation environments in this paper an integrated optimal spot pricing model is presented first the proposed model includes the detailed derivation of optimal nodal specific real time prices for active and reactive powers and the method to decompose them into different components corresponding to generation loss and many selected ancillary services such as spinning reserve voltage control and security control the features of the proposed model are discussed in relationship to existing pricing models and classical economic dispatch the model is then implemented by modifying existing newton opf methods through interior point algorithms which can effectively avoid go no go gauge i e highly volatile in the calculation of spot prices case studies on 5 bus and ieee 30 bus systems are reported to illustrate the proposed method

a general formulation for lmp evaluation the evaluation of locational marginal prices or lmps which constitute the basis of the new generation of market design in the u s is a critical need in the side by side operation of electricity markets and power systems their use in various applications such as congestion management and hedging requires specific lmp components in the computations we provide a general formulation for the evaluation of the lmp components by making explicit use of the important role played by the nodes with generators with free capacity on the other hand the lmps of the nodes without generation or with the generators at their limits are a function of the lmps at the marginal nodes and the impacts of the network constraints including the losses in the network in the formulation we pay special attention to the importance of the assumptions and specifications the so called policy specification in the determination of the components we obtain a very general formulation that brings under a single framework the different decomposition approaches that exist the formulation s comprehensiveness brings numerous insights into the various decompositions provides a platform for their comparative analysis and allows us to understand the direct implications and the role of the policy specified moreover the formulation reveals the limitations of any decomposition into the components due to the underlying structural interdependencies among them which is clearly shown in this paper we provide an example to illustrate the capabilities and the insights obtainable with the use of this formulation

the study of the impacts of potential coalitions on bidding strategies of gencos the paper studies the impacts of potential coalitions on bidding strategies of gencos in a pool based power market the generator under consideration can form any potential coalition with other generators subgroups are then formed and each of these subgroups consists of some members which coordinate their bidding strategies to achieve a common goal noncooperative gaming applies among all the subgroups while cooperative gaming applies among the members in each subgroup by implementation of bids sensitivities the paper presents an algorithm for the members in each coalition subgroup to obtain optimal bids which essentially is based on interior point optimal power flow ipopf model a priority list produced after optimal bids are found for all the potential combinations of coalition is used by the generator under consideration to bargain with members on the list the algorithm and model are tested by the ieee 30 bus system and numerical results are presented

probabilistic optimal power flow in electricity markets based on a two point estimate method this paper presents an application of a two point estimate method 2pem to account for uncertainties in the optimal power flow opf problem in the context of competitive electricity markets these uncertainties can be seen as a by product of the economic pressure that forces market participants to behave in an unpredictable manner hence probability distributions of locational marginal prices are calculated as a result instead of using computationally demanding methods the proposed approach needs 2n runs of the deterministic opf for n uncertain variables to get the result in terms of the first three moments of the corresponding probability density functions another advantage of the 2pem is that it does not require derivatives of the nonlinear function used in the computation of the probability distributions the proposed method is tested on a simple three bus test system and on a more realistic 129 bus test system results are compared against more accurate results obtained from mcs the proposed method demonstrates a high level of accuracy for mean values when compared to the mcs for standard deviations the results are better in those cases when the number of uncertain variables is relatively low or when their dispersion is not large

a bilevel approach to operational decision making of a distribution company in competitive environments this paper presents a model for operational decision making of a distribution company disco with distributed generation dg and interruptible loads il in a competitive market the disco objective modeled through the upper level problem is to minimize the cost of market purchases and dg unit dispatch while taking into account the responses of the other discos this upper level problem is constrained by a lower level market clearing problem whose objective corresponds to maximization of social welfare such a setting results in a multi disco equilibrium problem formulated as an equilibrium problem with equilibrium constraints epec by combining the optimality conditions of all upper level problems using a nonlinear approach the epec problem is reformulated as a single nonlinear optimization model which is simultaneously solved for all discos the proposed approach is applied to an ac model of a power system to account for voltage and reactive power constraints of the transmission and distribution networks numerical examples based on two test systems are presented to illustrate the application of the proposed method

probabilistic lmp forecasting considering load uncertainty in power market studies the forecast of locational marginal price lmp relies on the load forecasting results from the viewpoint of planning it is well known that short term load forecasting results always carry certain degree of errors mainly due to the random nature of the load at the same time lmp step changes occur at critical load levels clls therefore it is interesting to investigate the impact of load forecasting uncertainty on lmp with the assumption of a certain probability distribution of the actual load this paper proposes the concept of probabilistic lmp and formulates the probability mass function of this random variable the expected value of probabilistic lmp is then derived as well as the lower and upper bound of its sensitivity in addition two useful curves alignment probability of deterministic lmp versus forecasted load and expected value of probabilistic lmp versus forecasted load are presented the first curve is designed to identify the probability that the forecasted price in a deterministic lmp matches the actual price at the forecasted load level the second curve is demonstrated to be smooth and therefore eliminates the step changes in deterministic lmp forecasting this helps planners avoid the possible sharp changes during decision making process the proposed concept and method are illustrated with a modified pjm five bus system and the ieee 118 bus system

reactive power constrained opf scheduling with 2 d locational marginal pricing the objective of this paper is to suggest a robust optimal power flow opf framework to perform locational marginal pricing under the scarcity of reactive power the classical opf models employed for market clearing either assume infinite reactive power support or make a fully independent representation of the reactive power load in contrast a potentially more accurate power flow model is adopted in this paper recognizing the dependence of the level of reactive power consumption on the level of active power consumption the relationship is primarily modeled by employing the concept of power factor in addition there can be load requests with different power factors from the same location the corresponding locational marginal prices lmps are found to vary not only spatially but also according to power factors thus a two dimensional lmp variation is finally obtained a consistent definition of financial transmission rights is also provided and the associated lmp decomposition scheme is described the model proposed is studied on the ieee 30 bus system and its distinctive features are noted down and discussed

influence of price responsive demand shifting bidding on congestion and lmp in pool based day ahead electricity markets this paper investigates the influence of price responsive demand shifting bidding on congestion and locational marginal prices in pool based day ahead electricity markets the market dispatch problem of the pool based day ahead electricity market is formulated as to maximize the social welfare of market participants subject to operational constraints given by real and reactive power balance equations and security constraints in the form of apparent power flow limits over the congested lines the social welfare objective function of the day ahead market dispatch problem maximizes the benefit of distribution companies and other bulk consumers based on their price responsive demand shifting bids and minimizes the real and reactive power generation cost of generation companies the price responsive demand shifting bidding mechanism which has been recently introduced in the literature is able to shift the price responsive demand from the periods of high price to the periods of low price in day ahead electricity markets the comparisons of the price responsive demand shifting bids with conventional price responsive and price taking bids are presented by solving hourly market dispatch problems on five bus ieee 30 bus realistic up 75 bus indian and ieee 118 bus systems for 24 h scheduling period it has been demonstrated that the proposed approach leads to reduction in congestion and locational marginal prices as compared to price responsive and price taking bids and meets the energy consumption targets of distribution companies bulk consumers

goal setting and self control abstract this paper addresses the role of non binding goals to attenuate time inconsistency present biased agents have linear reference dependent preferences and endogenously set a goal that is the reference point they face an infinite horizon optimal stopping problem in continuous time when there is sufficient commitment to expectation based goals goal setting attenuates the present biased agent s tendency to stop too early and may even lead an agent to wait longer than the first best in particular reference dependence is strictly worse for a time consistent agent notably none of the effects of goal setting require loss aversion

opf for reactive pricing studies on the ngc system retail transmission services like those being provided by the national grid company ngc in england and wales pose new challenges for the pricing of reactive power supply a reactive power market approach has been proposed by ngc and continues to be evaluated such an approach includes a novel requirement for transmission constrained economic dispatch of var a problem in the security constrained optimal power flow opf class the problem formulations handled by the opf package in use could not accommodate ngc s requirements this paper describes the reactive pricing problem being addressed the modeling requirements and the resulting extensions made to the opf formulation and package it discusses the test results obtained to date on the ngc system

locational marginal price calculations using the distributed slack power flow formulation in practice locational marginal prices lmps are usually calculated by assembling their three components the reference price the congestion price and the loss price explicit formulas for calculating the three components based on the single slack power flow formulation can be found in the literature this letter presents the formulas for calculating the three components based on a distributed slack power flow formulation