Patent ID: 8285601

Claim:
A method of conducting a computer-based auction in simultaneous, multiple round, descending clock format, the method comprising the at least one of sequential, non-sequential, and sequence-independent steps of: (A) providing at least one bidders with confidential identification information in advance of commencement of the auction for identifying the at least one bidders manually in the event of an electronic communication failure during the auction; (B) upon commencement of the auction, receiving at least one electronic bids from the at least one bidders by a computer system indicating at least one desired tranche of at least one of a plurality of products, each of the at least one of the plurality of products comprising a basic generation service load of an electric distribution company for a given period of time or term and the at least one tranche representing an equal portion of the electric distribution company's basic generation service load; (C) processing by the computer system the at least one electronic bid according to at least one auction rule using auction software, said processing comprising (C1) at least partially rejecting, by the computer system, for a refused number of tranches, a withdrawal request, when accepting the withdrawal request in full would cause the number of tranches bid for the at least one particular product from which the bid would be withdrawn to fall below a tranche target for that at least one particular product; (C2) retaining, by the computer system, at least one of the refused number of tranches for the at least one of the plurality of products on which the refused number of tranches was bid; and (C3) transmitting and reporting, by the computer system, the refused number of tranches to the at least one bidder; (D) electronically sending by the computer system an auction result to the at least one bidders, the auction result comprising at least one of current prices of the at least one of the plurality of products, a current number of tranches bid for each of the at least one plurality of products, and at least one winning bidders from the at least one bidders for each of the at least one of the plurality of products; and (E) in the event a communication failure occurs such that the at least one electronic bids cannot be submitted for the auction, implementing at least one communication failure procedure, which enables the at least one bidders to be verified by receiving the confidential identification information from the at least one bidder, receiving at least one manual bid from the at least one bidder via at least one of a telephone, facsimile, hand delivery and mail, and accepting the at least one manual bid responsive to the verification of the confidential information by the computer system, thereby ensuring that the auction does not have to be postponed or canceled due to the communication failure of the at least one electronic bid.