February 4, 2005
All rights reserved to Shmuel Oren, UC Berkeley
PSERC
Procurement Auction Features
nKey feature - downward substitutability
nBasic Approaches:
nSequential auctions (substitution through rebidding)
nAuction order: Regulation, Spin, Nonspin,
Replacement
nOffer prices: Single, Simultaneous multiple, Sequential
nUniform market clearing price in each auction
nSimultaneous auctions (substitution by ISO)
nObjective function: Min social cost or Min procurement cost
nSettlement rules: MCP based on offer type, MCP based on use, Marginal value, Pay as Bid.
nPricing to buyers: Marginal cost, MCP based on type