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California abandons standard rates, adopts second price auction approach

Journal Article · · Cogener. Small Power Mon.; (United States)
OSTI ID:5037528
The California Public Utility Commission is replacing the standard offers, which encouraged cogeneration and small power in the state, with a bidding system which uses a second price auction approach. Sealed bids to provide electricity at a percentage of projected avoided cost will be submitted, with contracts awarded for needed capacity at the price bid by the lowest losing bidder. The author describes alternative auction strategies and potential pitfalls in the system, particularly the opportunity for delay and the chance that bidding suppliers will try to eliminate competition through underbidding.
OSTI ID:
5037528
Journal Information:
Cogener. Small Power Mon.; (United States), Journal Name: Cogener. Small Power Mon.; (United States); ISSN CSPME
Country of Publication:
United States
Language:
English