We examine the economic consequences of a bid-based security-constrained centralized unit commitment paradigm based on three-part offers, which is the prevalent day-ahead market-clearing mechanism in restructured electricity markets in the United States. We then compare this approach with an...

Electric power systems are made up of many generators, each with varyingcharacteristics, including: minimum and maximum generating capacities, start up costs,and costs to run. An independent system operator uses unit-commitment models todetermine which generating units should be in use at a...