INTEGRATING PRICE-BASED RESOURCES IN SHORT-TERM SCHEDULING OF ELECTRIC-POWER SYSTEMS

This paper discusses the application of a Lagrangian relaxation algori thm for solving short-term resource scheduling problems in the presenc e of ''endogenously priced'' resources. We demonstrate how such resour ces can be incorporated into the scheduling model as opposed to the pr evailing practice of activating them through post-dispatch price signa ls derived from the short term scheduling of resources directly contro lled by the utility. Through a simulation study we compare operations and costs of integrated scheduling to those resulting from the post-di spatch approach. Our analysis demonstrates that integrated scheduling can produce significant improvements.