Table 2: Cost and operational parameters for the bidding unit eter mwtMwtiaejbo t 300500 MWA/Mwh[∠/Mwh/MwhA we examine the change in profits as the bid is changed varying the bid parameters. It is assumed that the unit made fully available for every hour of the week. We restrict the bid variations to one parameter at a time while each of the other bid parameters is kept constant at the values of the corresponding cost parameters. The parameters that describe the bid variable price function are the bid no-load price, 60 the bid n in the same way the variable cost function of the unit is specified by the parameters c(o), e, ea, mi,m2 and m The bid start-up 46o. aeters b(O)“"(∞).nd+, We refer to the set of values d,2η,η2,n,b(0),b'(∞)r2} as the bid parameters f the unit. The profits made by the submission of the bid B are denoted by I(p, A ). In Figure 5, plot of I(e, A)against variations in e is given. 10 Figure 6: Plot of I(B, A )versus n2 under conditions of perfect comp re noteworthy for the explicit inclusion and detailed represen tion of the yar with the generation for electrical power. We have developed bidding to supply ration at cost and at marimum ca- pacity. The adoption of the POOLCO concept [12 ]makes th a result of practical interest in California. has focused only on one aspect of CPP- the duced a problem which can be effectively solved using the Cem framework. There are several facets of the CEM that require Figure 5: Plot of I(e, A)versus e additional work. For ex the optimal bidding strategy problem for buyers from the CEM may be formulated In Figure 6 plot is given of I(p, A)against variations in n. to optimize profits given resources, constraints and costs. The Once again, it is seen that maximum profit occurs when the bid oligopoly situation in EWPP generation markets[13]is an area trameter sponding cost parameter. The that may be explored ame theoretic notions writhin the aatness'of the profit with respect to variations in n' deserves CEM framework. A game theoretic formulation will allow the comment. Units that submit a piecewise linear bid variable analysis of the interaction between competing bidders. Such ice function are dispatched at the elbow points e or a interaction is not represented in the CEM the maximum power point, framework of the present n do not result in the cPP dispatcher redispatching the unit siderable work is the to other elbow points; hence, the profit remains unchanged. and pricing [14] into the CEM framework ults are observed for changes in n Conclusions References This paper has reported the development of a work which incorporates the salient features of the Companies of England and Wales, " James Capel and Co. sequently the England and Wales (EWPP). We have applied the framework to form [2]S. C. Littlechild, Report on Pool Price Inquiry. United termine the optimal bidding strategies of s bidder y Reg