•In ideal uniform pricing auctions, optimal bidding strategy is to bid “costs”, but
•
•Many seemingly uniform pricing auctions have “pay-as-bid” features, e.g.,
ØZonal pricing
ØSequential auctions
•
•3-part bid feature of Northeast ISOs comes closest to “uniform pricing”, but:
ØCannot handle
opportunity costs beyond 24-hr time frame
(e.g., hydro, emission costs)
ØCost structure may not
fit into bidding rules