Standard market design for ISO New England wholesale electricity market: An overview

This paper discusses the Standard Market Design (SMD) for ISO New England Electricity Market. SMD comprises a congestion management methodology for revealing and assigning costs of supplying electricity across limited transmission facilities and a two-part market settlement structure consisting of a "day-ahead" and a "day-of" settlement that allows for greater financial certainty to market participants. Day-Ahead Market, Real-Time Market, and Financial Transmission Rights (FTR) Auction are the key market elements of SMD. Based on the problem of security-constrained economic dispatch, an extended LMP model with transmission loss consideration will be presented. Details of functional design for the Multi-Settlement System and the FTR Auction System will be discussed.