objectives and find the best design that meets the majority of those objectives. As a result, certain tradeoffs may need to be considered. As an example, the Federal Energy Regulatory Commission (FERC) has listed the following four principles in its recent price formation initiative: 1) maximize market surplus for consumers and suppliers 2) provide correct incentives for market participants to follow commitment and dispatch instructions, make efficient investments in facilities and equipment, and maintain reliability ©ISTOCKPHOTO.COM/RAWPIXEL november/december 2017 ieee power & energy magazine 71http://www.ISTOCKPHOTO.COM/RAWPIXEL