No abstract

No abstract

ELECTRICITY MARKETS IN THE UNITED STATESand Canada have evolved since their inception in the late 1990s and early 2000s. Not all states and provinces moved toward restructured organized electricity markets, but rather those that have belonged to markets operated by independent system operators (ISOs) and regional transmission organizations, with designs developed through stakeholder processes and approved through state, provincial, or federal agencies, such as the Federal Energy Regulatory Commission (FERC).Areas in the western United States are also beginning to join organized markets. Differences in design exist due to regional characteristics and stakeholder processes, but most continue to converge to a common set of design features: locational prices based on marginal costs, bidbased security-constrained economic dispatch, and dayahead and real-time auctions for energy co-optimized with ancillary services for common grid services. A question that often comes up is whether these market designs are sufficient for systems dominated by resources lacking fuel costs and possessing other unique characteristics or whether substantial changes may be necessary to ensure economic efficiency and reliability.

No abstract

No abstract