{"product_id":"power-system-economics-isbn-9780471150404","title":"Power System Economics","description":"The first systematic presentation of electricity market design-from the basics to the cutting edge. Unique in its breadth and depth. Using examples and focusing on fundamentals, it clarifies long misunderstood issues-such as why today's markets are inherently unstable. The book reveals for the first time how uncoordinated regulatory and engineering policies cause boom-bust investment swings and provides guidance and tools for fixing broken markets. It also takes a provocative look at the operation of pools and power exchanges.\u003cbr\u003e * Part 1 introduces key economic, engineering and market design concepts.\u003cbr\u003e * Part 2 links short-run reliability policies with long-run investment problems.\u003cbr\u003e * Part 3 examines classic designs for day-ahead and real-time markets.\u003cbr\u003e * Part 4 covers market power, and\u003cbr\u003e * Part 5 covers locational pricing, transmission right and pricing losses.\u003cbr\u003e The non-technical introductions to all chapters allow easy access to the most difficult topics. Steering an independent course between ideological extremes, it provides background material for engineers, economists, regulators and lawyers alike. With nearly 250 figures, tables, side bars, and concisely-stated results and fallacies, the 44 chapters cover such essential topics as auctions, fixed-cost recovery from marginal cost, pricing fallacies, real and reactive power flows, Cournot competition, installed capacity markets, HHIs, the Lerner index and price caps.\u003cbr\u003e \u003cbr\u003e About the Author\u003cbr\u003e Steven Stoft has a Ph.D. in economics (U.C. Berkeley) as well as a background in physics, math, engineering, and astronomy. He spent a year inside FERC and now consults for PJM, California and private generators. Learn more at www.stoft.com. \u003cp\u003eList of Results and Fallacies xiv\u003c\/p\u003e \u003cp\u003ePreface xviii\u003c\/p\u003e \u003cp\u003eAcronyms and Abbreviations xx\u003c\/p\u003e \u003cp\u003eSymbols xxii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 1. Power Market Fundamentals\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrologue 2\u003c\/p\u003e \u003cp\u003eWhy Deregulate? 6\u003c\/p\u003e \u003cp\u003eWhat to Deregulate 17\u003c\/p\u003e \u003cp\u003ePricing Power, Energy, and Capacity 30\u003c\/p\u003e \u003cp\u003ePower Supply and Demand 40\u003c\/p\u003e \u003cp\u003eWhat Is Competition? 49\u003c\/p\u003e \u003cp\u003eMarginal Cost in a Power Market 60\u003c\/p\u003e \u003cp\u003e\u003ca href=\"file:\/\/172.24.195.5\/Wiley_02\/Wiley_CiP\/ToC%20PDF%20Automation\/Image%20format\/Batch%201\/Final\/9780471150404.docx#_TOC_250000\"\u003eMarket Structure 74\u003c\/a\u003e\u003c\/p\u003e \u003cp\u003eMarket Architecture 82\u003c\/p\u003e \u003cp\u003eDesigning and Testing Market Rules 93\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 2. Reliability, Price Spikes and Investment Reliability and Investment Policy    108\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrice Spikes Recover Fixed Costs 120\u003c\/p\u003e \u003cp\u003eReliability and Generation 133\u003c\/p\u003e \u003cp\u003eLimiting the Price Spikes 140\u003c\/p\u003e \u003cp\u003eValue-of-Lost-Load Pricing 154\u003c\/p\u003e \u003cp\u003eOperating-Reserve Pricing 165\u003c\/p\u003e \u003cp\u003eMarket Dynamics and the Profit Function 174\u003c\/p\u003e \u003cp\u003eRequirements for Installed Capacity 180\u003c\/p\u003e \u003cp\u003eInter-System Competition for Reliability 188\u003c\/p\u003e \u003cp\u003eUnsolved Problems 194\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 3. Market Architecture\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 202\u003c\/p\u003e \u003cp\u003eThe Two-Settlement System 208\u003c\/p\u003e \u003cp\u003eDay-Ahead Market Designs 217\u003c\/p\u003e \u003cp\u003eAncillary Services 232\u003c\/p\u003e \u003cp\u003eThe Day-Ahead Market in Theory 243\u003c\/p\u003e \u003cp\u003eThe Real-Time Market in Theory 254\u003c\/p\u003e \u003cp\u003eThe Day-Ahead Market in Practice 264\u003c\/p\u003e \u003cp\u003eThe Real-Time Market in Practice 272\u003c\/p\u003e \u003cp\u003eThe New Unit-Commitment Problem 289\u003c\/p\u003e \u003cp\u003eThe Market for Operating Reserves 306\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 4. Market Power\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefining Market Power 316\u003c\/p\u003e \u003cp\u003eExercising Market Power 329\u003c\/p\u003e \u003cp\u003eModeling Market Power 337\u003c\/p\u003e \u003cp\u003eDesigning to Reduce Market Power 345\u003c\/p\u003e \u003cp\u003ePredicting Market Power 356\u003c\/p\u003e \u003cp\u003eMonitoring Market Power 365\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart 5. Locational Pricing\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePower Transmission and Losses 374\u003c\/p\u003e \u003cp\u003ePhysical Transmission Limits 382\u003c\/p\u003e \u003cp\u003eCongestion Pricing Fundamentals 389\u003c\/p\u003e \u003cp\u003eCongestion Pricing Methods 395\u003c\/p\u003e \u003cp\u003eCongestion Pricing Fallacies 404\u003c\/p\u003e \u003cp\u003eRefunds and Taxes 411\u003c\/p\u003e \u003cp\u003ePricing Losses on Lines 417\u003c\/p\u003e \u003cp\u003ePricing Losses at Nodes 424\u003c\/p\u003e \u003cp\u003eTransmission Rights 431\u003c\/p\u003e \u003cp\u003eGlossary 443\u003c\/p\u003e \u003cp\u003eReferences 455\u003c\/p\u003e \u003cp\u003eIndex 460\u003c\/p\u003e  \"This book is for anyone seeking to understand how cost\/price relationships involved in electrical energy production and distribution may ideally be determined.\" (\u003ci\u003eElectrical Apparatus\u003c\/i\u003e, August 2002)  \u003cp\u003e\"...the quality of its content deserves a wide readership...\"(\u003ci\u003ePower System Economics The Journal of Energy Literature\u003c\/i\u003e, Vol.V111, No.2, 2002)\u003c\/p\u003e STEVEN STOFT has a BS in engineering mathematics and a PhD in economics from the University of California at Berkeley, and over ten years of experience in power market analysis and design. He has held positions at FERC, the University of California's Energy Institute, and the Lawrence Berkeley National Laboratory. He is currently a consultant to the Pennsylvania-New Jersey-Maryland ISO (PJM), California's Electricity Oversight Board, the U.S. Department of Energy, and an independent power producer.  An Introduction to the Fundamental Economics of Power Market Design and Analysis\u003cbr\u003e \u003cbr\u003e Power System Economics is the first systematic presentation of power-market design principles from economic theory to market architecture. The approach is pragmatic, and the discussion illustrates economic and engineering fundamentals with simple examples. The volume breaks new ground in its analysis of price spikes, market-based unit commitment, and the prediction of market power.\u003cbr\u003e \u003cbr\u003e Power System Economics includes five parts. Part 1 introduces key economic, engineering, and market design concepts. Part 2 explains how short-run reliability policies determine long-run average installed capacity and reliability. Part 3 examines classic designs for day-ahead and real-time markets. Part 4 covers market power, and Part 5 covers the effect of networks on prices. Topics include:\u003cbr\u003e * How marginal-cost prices cover fixed costs\u003cbr\u003e * Fundamentals of auction design\u003cbr\u003e * The value of lost load (VOLL) as a price cap: theory versus practice\u003cbr\u003e * Price limits, price spikes, investment, and reliability\u003cbr\u003e * Standard market designs, including PJM\u003cbr\u003e * Power pools versus power exchanges\u003cbr\u003e * Market power fallacies and the HHI\u003cbr\u003e * Losses pricing and congestion pricing","brand":"Wiley-IEEE Press","offers":[{"title":"Default Title","offer_id":47989826617573,"sku":"NP9780471150404","price":103.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780471150404.jpg?v=1761785594","url":"https:\/\/k12savings.com\/products\/power-system-economics-isbn-9780471150404","provider":"K12savings","version":"1.0","type":"link"}