Standard Market Design is a set of established guidelines governing the sale of
electrical power
Electric power is the rate at which electrical energy is transferred by an electric circuit. The SI unit of power is the watt, one joule per second. Standard prefixes apply to watts as with other SI units: thousands, millions and billions ...
and the operations of
electrical transmission lines in the
United States of America
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territor ...
established by the
Federal Energy Regulatory Commission
The Federal Energy Regulatory Commission (FERC) is the United States federal agency that regulates the transmission and wholesale sale of electricity and natural gas in interstate commerce and regulates the transportation of oil by pipeline in ...
.
[http://prod1.hoganlovells.com/~/media/hogan-lovells/pdf/publication/736standardmarketdesign_pdf.pdf ]
The objective of standard market design for
wholesale
Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. I ...
electric markets is to establish a common market framework that promotes economic efficiency and lower delivered energy costs, maintains power system reliability, mitigates significant market power and increases the choices offered to wholesale market participants. All customers should benefit from an efficient competitive wholesale energy market, whether or not they are in states that have elected to adopt retail access.
References
Electric power in the United States
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