@inproceedings{0c98e3b3c4334aff91cbfb7cac333694,
title = "Dynamic pricing in consolidated ancillary service markets",
abstract = "Regulation is a costly aspect of power system operation, which has long been inadequately and inconsistently incentivized via ill-formulated pricing schemes, as recently acknowledged by regulators. We propose a pricing formulation in which regulation prices are the optimal dual multipliers or costate of an optimal control problem. More precisely, we use the linear quadratic regulator to formulate a regulation pricing policy. We then construct a Vickrey-Clarke-Groves mechanism to induce honest participation among selfish agents. We apply the formulation to a scenario combining traditional frequency regulation and the California Independent System Operator's Flexible Ramping Product.",
author = "Taylor, {Joshua A.} and Ashutosh Nayyar and Callaway, {Duncan S.} and Kameshwar Poolla",
year = "2013",
doi = "10.23919/ecc.2013.6669505",
language = "English (US)",
isbn = "9783033039629",
series = "2013 European Control Conference, ECC 2013",
publisher = "IEEE Computer Society",
pages = "3032--3037",
booktitle = "2013 European Control Conference, ECC 2013",
address = "United States",
note = "2013 12th European Control Conference, ECC 2013 ; Conference date: 17-07-2013 Through 19-07-2013",
}