•Whether the energy price is $40
or $35, the reserve price is equally likely to be either
$12 or $4
•Optimal strategy is:
ØEnergy
Market:
oBid a 60 MW “stair” below
$35
oBid a 40 MW “stair” between $35
and $40
ØReserve
Market:
oBid amount uncleared in the
energy market below below $4/MW/h
•