Method and apparatus for bundling transmission rights and energy for trading

• US 20030055776A1
• Filed: 05/14/2002
• Published: 03/20/2003
• Est. Priority Date: 05/15/2001
• Status: Abandoned Application

• Current Assignee: Automated Power Exchange Incorporated
• Original Assignee: Automated Power Exchange Incorporated
• Inventors: Samuelson, Ralph
• Application Number:
  US10/146,511
• Publication Number:
  US 20030055776A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: H02J 3/008 involving trading of energy or energy transmission rights
• CPC Class Codes: Y04S 10/50 Systems or methods supporting the power network operation or management, involving a certain degree of interaction with the load-side end user applications
• CPC Class Codes: Y04S 50/10 Energy trading, including energy flowing from end-user application to grid

Abstract

A method and apparatus for bundling transmission rights and energy for trading allows participants to enter bids for complete energy and transmission rights bundles that they wish to buy and offers for the complete bundles that they wish to sell through a user interface. An optimization system is provided that continuously searches for ways to disassemble the bundles that participants wish to sell into their component elements (transmission rights and energy) and reassembles them into bundles that participants wish to buy. Any time that a set of bundles that participants wish to sell can be reassembled into a set of bundles that other customers wish to buy, and the aggregate bids for the new bundles exceeds the aggregate offers for the old bundles, the optimization system contracts orders for the bundles and performs the disassembly and reassembly. The invention provides a participant with a ex ante quote for any point-to-point transmission right at any time. An optimization system calculates this quote based on the standing bids and offers for other point-to-point transmission rights currently posted in the system by other participants or market makers. A participant that finds the quote attractive places an order at any time and is assured that the order will contract at the quoted price.

Claims

1. A process for the bundling and trading of energy and transmission rights between participants, comprising the steps of:

accepting participant offers to sell complete bundles of energy and transmission rights;

allowing participants to enter bids to buy complete bundles of energy and transmission rights;

continuously searching for ways to disassemble said sale bundles into component elements of energy and transmission rights and reassemble said component elements into said bid bundles; and

wherein if aggregate bids for a complete bundle exceeds aggregate offers of component elements of said sale bundles, then said continuously searching step contracts orders for bid bundles and sale bundles and performs disassembly of sale bundles and reassembles appropriate component elements into bid bundles.

2. The process of claim 1, further comprising the step of:

generating a price quote for a point-to-point transmission right for a participant on demand.

3. The process of claim 2, wherein said generating step calculates said price quote based on the standing bids and offers for point-to-point transmission rights currently posted by other participants.

4. The process of claim 2, wherein a participant that is interested in said price quote can place an order at any time and be assured that said order is contracted at said price quote.

5. The process of claim 1, wherein if said component elements have a higher aggregate value after being reassembled into other bid bundles then said component elements are reassembled to reach the higher aggregate value.

6. The process of claim 1, wherein if any component elements are not needed by any bid bundles then they are returned to the owner of the component elements.

7. The process of claim 1, further comprising the step of:

generating a price quote for energy at a particular location for a participant on demand.

8. The process of claim 7, wherein a participant that is interested in said price quote can place an order at any time and be assured that said order is contracted at said price quote.

9. A process for the bundling and trading of energy and transmission rights between participants, comprising the steps of:

providing a server based trading system;

requiring participants to log onto said server;

accepting participant offers to sell complete bundles of energy and transmission rights;

allowing participants to enter bids to buy complete bundles of energy and transmission rights;

providing trading display means on said server for displaying to a participant particular bids and offers;

providing optimization means on said server for continuously searching for ways to disassemble said sale bundles into component elements of energy and transmission rights and reassemble said component elements into said bid bundles; and

wherein if aggregate bids for a complete bundle exceeds aggregate offers of component elements of said sale bundles, then said optimization means contracts orders for bid bundles and sale bundles and performs disassembly of sale bundles and reassembles appropriate component elements into bid bundles.

10. The process of claim 9, further comprising the step of:

providing a participant with a price quote for any point-to-point transmission right at any time.

11. The process of claim 10, wherein said providing step calculates said price quote based on the standing bids and offers for point-to-point transmission rights currently posted by other participants.

12. The process of claim 10, wherein a participant that is interested in said price quote can place an order at any time and be assured that said order is contracted at said price quote.

13. The process of claim 9, wherein if said component elements have a higher aggregate value after being reassembled into other bid bundles then said component elements are reassembled to reach the higher aggregate value.

14. The process of claim 9, wherein if any component elements are not needed by any bid bundles then they are returned to the owner of the component elements.

15. The process of claim 9, further comprising the step of:

generating a price quote for energy at a particular location for a participant on demand.

16. The process of claim 15, wherein a participant that is interested in said price quote can place an order at any time and be assured that said order is contracted at said price quote.

17. An apparatus for the bundling and trading of energy and transmission rights between participants, comprising:

a module for accepting participant offers to sell complete bundles of energy and transmission rights;

a module for allowing participants to enter bids to buy complete bundles of energy and transmission rights;

a module for continuously searching for ways to disassemble said sale bundles into component elements of energy and transmission rights and reassemble said component elements into said bid bundles; and

wherein if aggregate bids for a complete bundle exceeds aggregate offers of component elements of said sale bundles, then said continuously searching module contracts orders for bid bundles and sale bundles and performs disassembly of sale bundles and reassembles appropriate component elements into bid bundles.

18. The apparatus of claim 17, further comprising:

a module for generating a price quote for a point-to-point transmission right for a participant on demand.

19. The apparatus of claim 18, wherein said generating module calculates said price quote based on the standing bids and offers for point-to-point transmission rights currently posted by other participants.

20. The apparatus of claim 18, wherein a participant that is interested in said price quote can place an order at any time and be assured that said order is contracted at said price quote.

21. The apparatus of claim 17, wherein if said component elements have a higher aggregate value after being reassembled into other bid bundles then said component elements are reassembled to reach the higher aggregate value.

22. The apparatus of claim 17, wherein if any component elements are not needed by any bid bundles then they are returned to the owner of the component elements.

23. The apparatus of claim 17, further comprising:

a module for generating a price quote for energy at a particular location for a participant on demand.

24. The apparatus of claim 23, wherein a participant that is interested in said price quote can place an order at any time and be assured that said order is contracted at said price quote.

25. An apparatus for the bundling and trading of energy and transmission rights between participants, comprising:

a server based trading system;

a module for requiring participants to log onto said server;

a module for accepting participant offers to sell complete bundles of energy and transmission rights;

a module for allowing participants to enter bids to buy complete bundles of energy and transmission rights;

trading display means on said server for displaying to a participant particular bids and offers;

optimization means on said server for continuously searching for ways to disassemble said sale bundles into component elements of energy and transmission rights and reassemble said component elements into said bid bundles; and

wherein if aggregate bids for a complete bundle exceeds aggregate offers of component elements of said sale bundles, then said optimization means contracts orders for bid bundles and sale bundles and performs disassembly of sale bundles and reassembles appropriate component elements into bid bundles.

26. The apparatus of claim 25, further comprising:

a module for providing a participant with a price quote for any point-to-point transmission right at any time.

27. The apparatus of claim 26, wherein said providing module calculates said price quote based on the standing bids and offers for point-to-point transmission rights currently posted by other participants.

28. The apparatus of claim 26, wherein a participant that is interested in said price quote can place an order at any time and be assured that said order is contracted at said price quote.

29. The apparatus of claim 25, wherein if said component elements have a higher aggregate value after being reassembled into other bid bundles then said component elements are reassembled to reach the higher aggregate value.

30. The apparatus of claim 25, wherein if some component elements are not needed by any bid bundles then they are returned to the owner of the component elements.

31. The apparatus of claim 25, further comprising:

a module for generating a price quote for energy at a particular location for a participant on demand.

32. The apparatus of claim 31, wherein a participant that is interested in said price quote can place an order at any time and be assured that said order is contracted at said price quote.