Zonal pricing with countertrading (a market-based redispatch) gives arbitrage opportunities to the power producers located in the export-constrained nodes. They can increase their profit by increasing the output in the dayahead market and decrease it in the real-time market (the inc-dec game)....

In this paper we make inferences about wholesale price discrimination and uniform wholesale pricing policy. This is an important question when there is a policy goal to enforce uniform wholesale price legislation in a variety of markets and we address this question by simulating the effects of...

We introduce a discrete-time model for electricity prices, which accounts for both transitory spikes and temperature effects. The model allows for different rates of mean-reversion: One for weather events, one around price jumps, and another for the remainder of the process. We estimate the...