The Power Market Of The United States

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system is active. However, majority of the states such as Washington, Idaho, Utah, Kansas, Louisiana, Mississippi, Alabama, and Florida are still regulated. However there is no deregulation on retail choice which is explained in detail in the next section. On the other hand, in some of the states like California, Nevada, Arizona, New Mexico, Montana, Arkansas, and Virginia, restructuring has been suspended. 1.1.2 Power Market Power Market is the market where financial and physical trading of electricity takes place. Power sale happens well in advance and also in real time. Accordingly, energy market is classified into Day Ahead (DA) Market and Real Time (RT) Market. Day Ahead Markets [52] are based on bids and auctions. Contracts are made well in advance based on energy price bids. DA auctions are performed based on complex calculations considering the generation cost as well system constraints. Seller and buyer negotiate for prices until bids are accepted and trade is accepted. Each auction are specified by a set of conditions: bidding rules, bid acceptance rules, and settlement rules. Major portion of power trade is dealt in DA auctions. Real Time market is used to solve the mismatch with day ahead forecasted load and real time load.The Real time price is determined by actual (real time) supply and demand. This includes power traded under forward contract and real time market. Power is traded with spot price fixed by ISO rather than using bids and contracts. A price is

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