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Dramatic changes in the structure and operation of US bulk-power markets require new analytical tools. The authors developed the Oak Ridge Competitive Electricity Dispatch (ORCED) model to analyze a variety of public-policy issues related to the many changes underway in the US electricity industry. Such issues include: policy and technology options to reduce carbon emissions from electricity production; the effects of electricity trading between high- and low-cost regions on consumers and producers in both regions; the ability of the owners of certain generating units to exercise market power as functions of the transmission link between two regions and the characteristics of the generating units and loads in each region; and the market penetration of new energy-production and energy-use technologies and the effects of their adoption on fuel use, electricity use and costs, and carbon emissions. ORCED treats two electrical systems connected by a single transmission link ORCED uses two load-duration curves to represent the time-varying electricity consumption in each region. The two curves represent peak and offpeak seasons. User specification of demand elasticities permits ORCED to estimate the effects of changes in electricity price, both overall and hour by hour, on overall electricity use and load shapes. ORCED represents the electricity supply in each region with 26 generating units. The two regions are connected by a single transmission link. This link is characterized by its capacity (MW), cost ({cents}/kWh), and losses (%). This report explains the inputs to, outputs from, and operation of ORCED. It also presents four examples showing applications of the model to various public-policy issues related to restructuring of the US electricity industry

ORCED: A model to simulate the operations and costs of bulk-power markets