comfort expectation of the building occupant or manager. In this TCC process, an AHU obtains electricity at a certain cost directly from the building-level energy market and then sells its product-cool air-to zones within the building. The zones electronically " bid " on the cooling capacity based on price and desired occupant comfort levels. The curve influences AHUs to either reduce the power to balance cost and comfort objectives or, in cases of abundant economical electricity, perhaps increase consumption to perform tasks, such as precooling a building in anticipation of higher ambient temperatures that coincide with higher electricity prices. For more details on how the markets are cleared, refer to Katipamula et al. (2019). Application of ILC and TCC in Buildings In this section, we show how ILC and TCC applications can be used to manage BTM DERs to provide grid services. Electricity Building Electricity Market Chiller Agent #1 Chiller Agent #L Lighting Agent #1−1 Btu Light #1−1 Lighting Agent #1−0 Hot Water Agent #1−1 HW #1−1 Air Light #1−0 AHU Agent #1 AHU #1 Air Market #1 Chiller #1 Chiller #L Chilled Water Market AHU Agent #N AHU #N Air Market #N VAV Agent #1−1 VAV Agent #1−2 VAV Agent #1−M1 VAV Agent #N−1 VAV Agent #N−2 VAV Agent #N−MN VAV #1−1 VAV #1−2 VAV #1−M1 (a) More Savings pi = p + kσ + pi + More Comfort K VAV #N−1 VAV #N−2 VAV #N−MN p pi - pi = p - kσ + qi p σ k − qi Capacity (kW/kWh/Btu) Average Price Over a Certain Period Standard Deviation of the Price Over the Same Period User-Specific Tradeoff Parameter (0 = Saving, >1 = Comfort) (b) Figure 4. (a) Multiple commodity markets inside a commercial building and (b) a generic price-capacity curve. IEEE Electrification Magazine / DECEMBER 2022 43 + Price (US$)