Market Modeling: Electricity Pricing Analyses

Analysis Group has experience with various planning and tools for economic analysis. We frequently analyze electricity markets using detailed unit dispatch models. For example, in the context of a recent litigation assignment, we modeled the entire Eastern Interconnection using a zonal simulation model. These models can also be used to address policy questions.

In addition, Analysis Group has developed a detailed understanding of ISO New England's wholesale pricing structure through comprehensive modeling of the hourly dispatch of the region's generating resources, subject to transmission constraints and contingencies using the MAPS software.

We have developed a detailed, specific understanding of regional wholesale pricing structures through modeling efforts that we have applied to a broad range of different applications, including:

  • Estimating the economic impacts of adding an incremental generating resource into a system
  • Valuing an asset
  • Understanding the comparative advantages of locating a generating resource in one location or another
  • Comparing the advantages of one resource option (e.g., distributive generation) versus another (e.g., building a power plant or a transmission line)
  • Assisting an equipment supplier¬†in understanding its market risks and opportunities
  • Modeling wholesale electric prices
  • Performing evaluations of the economic benefits or costs of a policy initiative
  • Modeling market power issues in the context of mergers or applications for market-based rate authority at FERC