Optimization and Visualization of the North American Eastern Interconnect Power Market

This paper uses a first generation OPF model of the Eastern Interconnect to gauge the potential benefits deriving from RTOs in an ideal world. So long as the lines and generators are operating as planned, there is sufficient low cost capacity to keep peak demand prices in the Eastern Interconnect below $50 MWH. Under a reasonable approximation of ideal conditions a repeat of San Diego’s experience is unlikely. Unfortunately a few downed lines or generator outages can greatly impact local prices even with unrestricted trade.