A TRILATERAL BROKERAGE SYSTEM FOR POWER TRANSACTIONS

In this paper, we design and analyse a brokerage system for buyers, se llers and intermediate utilities of electric power. Specifically, we m athematically characterize the determination of bids by buyers and sel lers, the matching process of bids, and the selection of the transmiss ion routes by the brokerage system. Moreover, we analyse the cost/bene fit to intermediate utilities from the transmission of transacted powe r. The two key features differentiating this model from the extant lit erature on electric power transmission pricing and brokerage systems a re: (1) multiple purchase and sale bids from potential buyers and sell ers; and (2) the systematic determination of transmission routes by mi nimizing the total cost to intermediate utilities. The improvement in economic efficiency (measured in terms of cost savings) is demonstrate d via a series of numerical examples. (C) 1997 by John Wiley & Sons, L td.