Markets & Pricing

Day-Ahead Market

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Definition

A forward wholesale electricity market operated by an RTO/ISO that clears 24 hourly intervals for the next operating day based on submitted supply offers and demand bids. Day-ahead market schedules are financial contracts — no physical power flows in the day-ahead market itself; all schedules are liquidated against real-time LMPs the following day. The day-ahead market allows generators to commit resources, enables load-serving entities to hedge real-time price risk, and provides a platform for virtual bidding by purely financial participants.

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Topic Deck

Markets & Pricing

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Source

FERC Pro Forma OATT / LGIP

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