“Locational Marginal Pricing” is a one-day interactive seminar that explains nodal pricing in electric power markets for legal, regulatory, and accounting professionals.
You learn the basics of:
- marginal clearing prices in an offer-based economic dispatch market
- transmission constraints
- hedging of energy and transmission price variation
- market power
(For a technical overview of Locational Marginal Pricing, read the syllabus for my UT grad course.)
“You made a very complicated subject much easier to analyze and understand. A great course!”
Prerequisites: General knowledge of electricity markets. No math or technical prerequisites.
Format: Seven lecture hours illustrated with 200 slides. Interactive exercises.
Documentation: You receive a three-ring binder of the entire seminar plus a cross-referenced glossary of terms.
Customization: This seminar can be presented on-site at your company.
Instructor: Dr. Ross Baldick, Professor of Electrical and Computer Engineering at The University of Texas at Austin.
Questions? Email Dr. Baldick
“Locational Marginal Pricing” has been presented at:
- ERCOT
- Dynegy
- Austin Energy
- Lower Colorado River Authority (LCRA)
“One of the best professional educational seminars I have attended. Dr. Baldick builds on concepts from the ground up, in a clear and comprehensible manner. He engages attendees in discussion and responds thoughtfully to all questions.”
Questions? Email Dr. Baldick
Curriculum:
1. Offer-based economic dispatch
- Block prices for energy offers
- Demand and demand bids
- Dispatch and pricing
- Two generator example
- Three generator example
- Incentives from pricing rule
- Variations
2. Hedging energy price risk
- Financial versus physical bilaterals
- Contracts for differences to hedge price variation
3. Transmission
- Transmission constraints
- One line example
- Three generator, four line example
- Locational marginal pricing (LMP)
- Congestion rental and congestion cost
- Properties of LMPs
- Commercial network model
- Losses
4. Hedging transmission price risk
- Variation of LMPs
- Financial Transmission Rights (FTRs)
- One line example
- In combination with CfDs
- Acquiring FTRs
- Revenue adequacy
- Flowgate rights
- Option FTRs
5. Conclusion
- Virtual bidding
- Market power
- Market power mitigation
Questions? Email Dr. Baldick