Brent Eldridge

Essays on Average Incremental Cost Pricing for Independent System Operators

  • Richard O'Neill
  • Yonghong Chen
  • Brent Eldridge
    • Categories (Mixed) Integer Linear Programming Tags ,

    In a series of essays, we introduce average incremental cost (AIC) pricing and present examples to help understand its advantages. In non-convex markets, AIC pricing is the rough equivalent to marginal cost pricing in convex markets. We present a qualitative comparison of current ISO pricing methods and the AIC approach. We argue that AIC better … Read more

    Efficient Prices under Uncertainty and Non-Convexity

  • Brent Eldridge
  • Bernard Knueven
  • Jacob Mays
    • Categories Applications - OR and Management Sciences Tags , ,

    Operators of organized wholesale electricity markets attempt to form prices in such a way that the private incentives of market participants are consistent with a socially optimal commitment and dispatch schedule. In the U.S. context, several competing price formation schemes have been proposed to address the non-convex production cost functions characteristic of most generation technologies. … Read more