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Spring Washer Effect: A Market Clearing Engine Study of the NEMS

Spring Washer Effect: A Market Clearing Engine Study of the NEMS
Lu Feiyu, Senior Market Analyst
Original Publication Date: October 2004

Since the NEMS began operation on 1 Jan 2003, nodal price separation has been observed a few times.  Nodal price seperation occurs when the price difference between two adjacent nodes is well above the normal range that is incurred from transmission loss. In most of these cases, the spring washer effect was the cause of the pricing anomaly. This paper explores the spring washer effect in detail and discusses its relationship with nodal prices.