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RTO Frequency Regulation Market Clearing Formulations and the Effect of Opportunity Costs on Electricity Prices

The Regional Transmission Operators each have unique methods to procure frequency regulation reserves used to track real power fluctuations on the grid. Some market clearing practices result in high regulation prices with large spread compared to other markets. We present the frequency regulation market clearing formulations--as derived from operator tariffs--of the ISO New England, PJM Interconnection, and Midcontinent ISO. We offer test case examples to explain the historic market pricing behavior seen within each system operator and conclude this behavior is due to the inclusion of estimated lost opportunity costs in market clearing.

preprint2020arXivOpen access
Adria E. BrooksBernard C. Lesieutre
Systems and Controleess.SY
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Open access2 authors2 topics
Imported metadata coverageMissing code, dataset, citation and institution fields are tracked without dominating the paper.Details
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Adria E. BrooksBernard C. Lesieutre

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