This white paper is a primer on wholesale market design and provides background for the open meeting workshop scheduled by the Public Utility Commission of Texas for November 1, 2002. The paper is divided into six sections:
1. Reasons for this rulemaking;
2. Measures of an efficient, sustainable market;
3. Architecture of power markets;
4. Elements of a power market;
5. Basic economics of congestion management and day-ahead markets;
6. Descriptions of wholesale electric markets around the world.