A "simple but not too simple" laboratory for wholesale power markets.

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The wholesale power market design proposed by the U.S. Federal Energy Regulatory Commission (FERC) in an April 2003 white paper [FERC 2003] encompasses the following core features:

1. Central management by an independent market operator.
2. A two-settlement system consisting of a day-ahead market supported by a parallel real-time market to ensure continual balancing of supply and demand for power.
3. Management of grid congestion by means of locational marginal pricing (LMP), i.e., the pricing of power by the location and timing of its injection into, or withdrawal from, the transmission grid.
4. market power oversight and mitigation.

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