December 2004

47
R. Rajaraman. “Optimal Bidding Strategies in Electricity Markets”
Simultaneous Auction
•ISO clears all markets simultaneously:
Ødetermines uniform prices for each service
Ødetermines winning schedules
Øguarantees profit optimality for all bidders
•Price-taking bidders bid their cost curves
ØAt ISO-determined market prices, no bidder can increase profits by changing schedules in the different markets
•Example: NYISO