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Locational pricing makes the network secure, since the utilities and other market participants get 'paid' to monitor the grid.
Fortnightly Magazine - January 2004
  1. years back. According to a sampling from this incident, the inadvertent power was 1,656 MW, 1,278 MW, and 1,448 MW for the sampled hours. Power prices in the bilateral market (there was no spot market) ranged between $2,000 and $9,500 MW/hour on one day. Assume $4,000 MW/hour for only those hours and the total is $17,528,000 of unpaid energy.
  2. While it cannot be said that the rules of any RTO are perfectly structured to facilitate merchant transmission investment for AC lines and systems at this time, they provide the best platform for adopting rules to achieve such investment on a regional basis.
  3. Regional security coordinators are part of the North American Electric Reliability Council, but in some cases these coordinators are employed by the vertically integrated utilities in the region, and therefore their impartiality for ordering curtailments necessary in non-market areas to relieve excessive congestion has been called into question.
  4. Approximately 3,500 nodes in the current PJM system.
  5. The 2003 Blackout: Did The System Operator Have Enough Power? Fernando Alvarado ( and Rajesh Rajaraman (


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