US 9,811,855 B1
Electronic extension requests to extend electronic bidding for qualified bidders for computer-based auctioning of basic generation services
Anthony R. Robinson, Hillsborough, NJ (US); Frederick W. Lark, Bernardsville, NJ (US); Eugene Meehan, Washington, DC (US); Chantale LaCasse, New York, NY (US); David Salant, Sausalito, CA (US); Colin J. Loxley, Laurence Harbor, NJ (US); Gerald W. Schirra, Randolph, NJ (US); and Robert Taylor, Chester Borough, NJ (US)
Assigned to Public Service & Gas Company, Newark, NJ (US); Atlantic City Electric Company, Wilmington, DE (US); Jersey Central Power & Light Company, Akron, OH (US); and Rockland Electric Company, Pearl River, NY (US)
Filed by Anthony R. Robinson, Hillsborough, NJ (US); Frederick W. Lark, Bernardsville, NJ (US); Eugene Meehan, Washington, DC (US); Chantale LaCasse, New York, NY (US); David Salant, Sausalito, CA (US); Colin J. Loxley, Laurence Harbor, NJ (US); Gerald W. Schirra, Randolph, NJ (US); and Robert Taylor, Chester Borough, NJ (US)
Filed on Jul. 10, 2012, as Appl. No. 13/545,367.
Application 12/180,888 is a division of application No. 10/680,407, filed on Oct. 8, 2003, granted, now 7,409,360.
Application 13/545,367 is a continuation of application No. 12/180,888, filed on Jul. 28, 2008, granted, now 8,219,459.
Claims priority of provisional application 60/416,570, filed on Oct. 8, 2002.
This patent is subject to a terminal disclaimer.
Int. Cl. G06Q 30/00 (2012.01); G06Q 30/08 (2012.01); G06Q 30/06 (2012.01)
CPC G06Q 30/08 (2013.01) [G06Q 30/06 (2013.01); G06Q 30/0601 (2013.01)] 66 Claims
OG exemplary drawing
 
1. A computer implemented method of conducting a computer-based simultaneous, multiple round, descending clock auction for basic generation services, the method comprising the sequential, non-sequential, and sequence-independent steps of:
(A) electronically receiving, using secure technology and a computer processor of a computer system to execute a web server computer system, bid data from a plurality of users at the web server computer system, wherein the bid data was entered using secure and encrypted procedures, wherein at least one code key is used for support or backup bidding, wherein the bid data comprises at least one bid for at least one tranche of at least one of a plurality of products at a specified starting price set by an Auction Manager during multiple rounds of bidding, wherein each of the at least one of the plurality of products comprises a basic generation service load of an electric distribution company for at least one of a given period, time, or term and wherein each of the at least one tranche represents a portion of the electric distribution company's basic generation service load, wherein the at least one bid includes a time-stamp, the time-stamp being the time at which the at least one bid is logged into the web server computer system, wherein the validity of the bid data is based on a maximum number of allowable tranches that the plurality of users can bid on in a given round, for each EDC, for the auction, or pursuant to state and local rules;
(B) calculating, using the computer processor to execute an application server computer system hosting auction software for the simultaneous, multiple round, descending clock auction for basic generation services, wherein the application server computer system is in data communication with the web server computer system and the application server computer system and the web server computer system are maintained separately from an auction database server to maintain the physical security of the systems and server and provide server and network security for the auction software being executed on the application server computer system, wherein a plurality of client browsers, the application server computer system, the web server computer system, the auction software, and the auction database server provide a multi-tier architecture and field-level database access control in combination with a constituent hierarchy, wherein the bid data is communicated over a plurality of tiers of the multi-tier architecture using secure technology, a second round price for each of the at least one of the plurality of products for a second round of bidding based on the specified starting price and a number of tranches bid for each of the at least one of the plurality of products during a first round of bidding, wherein the second round price is lower than the specified starting price for any of the at least one of the plurality of products that received a number of tranches bid greater than a tranche target for that product during the first round of bidding and wherein the second round price is equal to the specified starting price for any of the at least one of the plurality of products that received a number of tranches bid one of equal to and less than the tranche target for that product during the first round of bidding;
(C) electronically transmitting, using the computer processor to execute the web server computer system, a first round result of the first round of bidding to qualified bidders, the first round result comprising the second round price for each of the at least one of the plurality of products and at least one of a notice of the number of tranches bid during the first round for each of the at least one of the plurality of products and an amount of excess supply offered during the first round of bidding for each of the plurality of products;
(D) determining, using the computer processor to execute the application server computer system, when the second round price for at least one of the plurality of products is less than the first round;
(E) constantly repeating steps (B)-(D), using the computer processor to execute the application server computer system, for at least one subsequent round of bidding following the second round, wherein a subsequent round price for each of the plurality of products for the at least one subsequent round of bidding is based on a previous round price of an immediately previous round of bidding and a number of tranches bid for each of the at least one of the plurality of products during the immediately previous round of bidding, wherein said application server computer system determines that the subsequent round price is lower than the previous round price for any of the at least one of the plurality of products that received a number of tranches bid greater than the tranche target for that product during the immediately previous round of bidding, wherein said application server computer system determines that the subsequent round price is equal to the previous round price for any of the at least one of the plurality of products that received a number of tranches bid one of equal to and less than the tranche target for that product during the immediately previous round of bidding, and wherein a round result is sent during step (C), the round result comprising the subsequent round price for each of the plurality of products and at least one of a notice of the number of tranches bid during the immediately previous round of bidding for each of the plurality of products and an amount of excess supply offered during the immediately previous round of bidding for each of the plurality of products;
(F) electronically receiving, using the computer processor to execute the web server computer system, an extension request from at least one of the qualified bidders before the round of bidding has ended;
(G) automatically, using the computer processor to execute the application server computer system, granting and extending a duration of the round of bidding responsive to the extension request before the round of bidding has ended, and wherein during the extension, all of the qualified bidders are capable of submitting new bids, and wherein a number of extensions remaining for the at least one of the qualified bidders who was granted the extension request is decremented;
(H) repetitively determining, using the computer processor to execute the application server computer system, when the number of tranches bid during a round of bidding are one of equal to and less than the tranche target for each of the at least one of the plurality of products; and
(I) when the number of tranches bid for the round of bidding are one of equal to and less than a certain threshold for each of the at least one of the plurality of products such that no further bidding can take place under auction rules, ending the auction, using the computer processor, after the round of bidding and awarding winning bidders at least one tranche having an ending price comprising one of a final price from a final round of bidding and a named exit price for each of the at least one of the plurality of products won by the winning bidders, wherein the winning bidders fulfill the at least one tranche associated with the electric distribution company's basic service load by supplying energy requirements including at least one of capacity, energy, ancillary, and transmission services to be distributed to a customer requiring electricity via the basic generation services, wherein the winning bidders are determined based on the named exit price and, where bidders submitted the same named exit price, the bidders that submitted their bids earlier, based on the time-stamps of the bids, are the first to be allocated tranches.