http://www.caiso.com/docs/2004/09/17/2004091712202513134.pdf
Here's an excellent overview of all presently de-regulated electricity markets in the world, prepared for CASIO by Charles River Associates in 2004. It is clear to see that all the designs reviewed, PMJ, TXU, Ontario, Britain, Alberta, Chile, etc. all are using some hybrid of a marginal pricing model BUT all still suffer the common failures, along with EWPC being heavily promoted on this site, of making a pre-defined distinction between a) those who are allowed to participate in the market and b) those who are not.
It is my contention that this distinction is artificially created and imposed simply for a lack of imagination for how things could operate if a small amount of creativity were applied to electronically automating everyone's market interactions. The full cost of the automation would amount to perhaps $5.50 / month for each customer, but the gains for the customers would far outweigh that cost. e.g. being allowed to purchase in the wholesale market at the same price as the large industrial customers, after simply paying a flat rate fee per service according to size to cover all distribution costs (as now happens in Ontario) will gain the typical customers a monthly saving far in excess of the $5.50 / month cost. From there, having the right to easily and simply connect local Distributed Generating units (solar PV, solar thermal, bio-fueled CHP engines, or natural gas-fired SOFC fuel cells [GE], stirling engines or even piston engines [e.g. the Honda generating/heating units being marketed in Japan]) to the grid and to the market on an equal footing with the largest central stations should very strongly advance the installation of those units. If all the Natural Gas now burned in Califonia in pool heaters or space heaters were first used to generate electricity in small distributed Solid Oxide Fuel Cells as General Electric has already demonstrated to DOE at $750 / kw, then would there be any further discussion of electriciy shortages? New transmission lines? How about small solar thermal CHP units for space heating in Texas or Alberta? The solar reaources are excellent and the "waste" heat would be almost entirely useful [space heating, hot water, pool heating etc] even from a relatively low efficiency (and low cost) unit.
The only thing holding back the advance of these sorts of units is the electricity market which does not fairly reward these types of units for their generation, nor make it easy or economical to get them connected.
IMEUC is designed to fix that.
Independent Market for Every Utility Customer - Preliminary Business Case -
http://www.energypulse.net/centers/article/article_display.cfm?a_id=1176
Independent Market for Every Utility Customer - Part 2 - Market Operation -
http://www.energypulse.net/centers/article/article_display.cfm?a_id=1181
