- December 18th, 2018
POWER AUCTIONS
BACKGROUND INFORMATION
Optimal Auctions' power auctions have been used to purchase $113 billion worth of power around the world. We provide experts for consulting and the best auction software in the world to run your high stakes power auctions. Our cusomters are so satisfied with the results that they get from our power auctions, that they continue to come back to us year after year for their auction needs, with one client just finishing their 24th year with us.
TYPICAL AUCTION FORMATS
A Power Auction proceeds in a series of rounds. When a participant bids, they are stating the number of "tranches" (quantity) they are willing to supply of each product at the prices in force at that point in the auction. A price for a product is an amount (e.g. in $/kW hour) paid for each unit of account (e.g. kW hour) of a "product" (e.g. full requirements service) purchased. The auction is called a Simultaneous Auction because products for all zones or sellers are auctioned at the same time and bidders can switch between products as the relative prices develop. The auction is a descending auction because the going prices for over-subscribed products decrease as the auction progresses from round-to-round. Participants reduce the quantity they wish to supply as the going prices decrease. The auction closes when the total number of tranches bid on each product is less than or equal to the auction volume. The auction's starting prices are the going prices in the first round. The final auction prices are the clearing prices at the auction close. Those bidders holding the final bids when the auction closes are the winners.
- Easy to Set-Up for Regulators
- Easy to Understand for Bidders
- Produces an Efficient Result with Use of Exit Prices
- Guarentees the Sale of Every Tranche Once Supply is Greater than Demand
POWER AUCTION PROJECTS
BGS ELECTRICITY AUCTIONSNew Jersey
A Simultaneous Descending Clock Auction on behalf of PSE&G, JCP&L, ACECO and RECO purchasing full requirements in one-year and three-year contracts.
AEP ELECTRICITY AUCTIONSOhio
A Simultaneous Descending Clock Auction, with sophisticated increment formulas determining the change in prices every round.
PENELEC ELECTRICITY AUCTIONPennsylvania
Multiple Simultaneous Descending Clock Auctions running concurrently within the software, with bidders having cross-auction eligibility and advanced bidder eligibility rules.
CAPACITY AUCTIONSpain
A Simultaneous Descending Clock Auction, implementing an advanced stage, activity, and eligiblity formula.
CHOOSING OPTIMAL AUCTIONS
We would be incredibly happy to show you a demonstration of our power auction software. We are confident that once you see how the software works, and how easily it controls every aspect of your auction, you will never go back to using an Excel spreadsheet. Our software takes care of everything you could imagine - exact timing of rounds, ensuring bids are received in time, ensuring bids adhere to eligility rules, and thousands of other things. Plus, it runs right in your browser, so anyone with a desktop, laptop, or even a smartphone can use our software.
We will be happy to talk with you about your auction software needs, and will help answer any questions you might have. We know that our power auction software is the best the world. You'll learn the same thing all of our recurring clients have found - once you use our electricity auction software, you'll never want to use anything else again.
Who We Are
We are responsible for a wide range of auctions for national governments and private corporations - everything from pricing 10% of the world's diamond supply to billions of dollars worth of electricity in for states in the United States.
When you are running the most important auctions in the world you have to choose the best auction software provider in the world, Optimal Auctions.
Our Software Products
Our Software Provides
- Multiple Auction Formats
- Bank-Level Security
- Beautiful User Interface
- 100% Reliability
- Blazing Performance
- Massive Scalability
- Total Auditability
- Complete Test Coverage
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