Electricity Scarcity Pricing Through Operating Reserves: An ERCOT Window of Opportunity.” In, 2012. Publisher's VersionAbstract“
Texas has a window of opportunity to complement its resource adequacy initiatives with an accelerated program to adopt an operating reserve demand curve. Suppressed prices in real-time markets provide inadequate incentives for both generation investment and active participation by demand bidding. An operating reserve demand curve developed from first principles would improve reliability, support adequate scarcity pricing, and be straightforward to implement within the framework of economic dispatch. This approach would be fully compatible with other market-oriented policies, the existing Texas “energy only” market design, and the proposed options for long-term resource adequacy.