Published by IEEE Wiley Press, Power System Economics is not a standard engineering textbook. While traditional texts focus on unit commitment and load flow, Stoft focuses on the incentives created by market rules.
Here is why the book is still relevant:
In the chaotic narrative of energy deregulation, Steven Stoft’s Power System Economics stands as a solitary lighthouse. Published in 2002, amidst the wreckage of the California electricity crisis and the Enron scandal, the book did something radical: it treated electricity markets not as inevitable byproducts of deregulation, but as intricate machines that require rigorous, mathematical engineering. power system economics steven stoft pdf
Before Stoft, the prevailing orthodoxy was simple: break up the monopolies, let the market loose, and efficiency will follow. Stoft shattered this illusion. His central thesis is that electricity is economically distinct from every other commodity, and without specific, counter-intuitive market architecture, "deregulation" leads not to efficiency, but to market power and collapse. Published by IEEE Wiley Press, Power System Economics
Within the PDF, you will find a single diagram (usually Figure 4.1) that explains LMP better than ten lectures. It shows a three-bus system with a congested line. Memorize this diagram; it is the Rosetta Stone of power economics. Published in 2002, amidst the wreckage of the