EE 458

Course structure
Economic Systems for Electric Power Planning

(Fall 2019)

T, Th 9:30-10:50, Gilman 2205

Instructor: Professor James McCalley

Dr. McCalley's Home Page



Course objectives

Course structure


Course Structure EE 458 Fall 2019

Course : Electrical Engineering 458, Economic systems for electric power planning

Instructor : Professor James McCalley, Coover Hall, Room 1115

Office Hours : T, Th, F, 2-3:00, or by appointment

E-mail & Phone :, 294-4844 (Office)

Grader : None.

Course Web Page:

Catalog description: (Cross-listed with ECON). (3-0) Cr. 3. Prereq: E E 303 or ECON 301.

Evolution of electric power industry. Power system operation and planning and related information systems. Linear and integer optimization methods. Short-term electricity markets and locational marginal prices. Risk management and financial derivatives. Basics of public good economics. Cost recovery models including tax treatment for transmission investments.

Course Goals : To enable each student to

(1) articulate basic concepts of microeconomics;

(2) articulate the basic concepts of optimization;

(3) characterize existing electric industry structure and electricity market systems.

Course Prerequisite:EE 303 or Econ 301. Familiarity with the following topics is essential: matrix algebra, calculus, basic optimization concepts at the level of EE 303.

Required Student Materials:

1.      None. All course materials will be posted to the website.

Exams: There will be two 50 minute exams during the semester and a comprehensive final exam. No make-up exams will be given, unless there is a legitimate reason for missing the exam that is not under student control.

Assignments: Besides exams, there will be two different types of assignments.

       Homework problems: For each assignment made by your instructor, you will turn them in, but they will not be corrected. It will be your responsibility to learn how to solve the problems. Solutions to the problems will be made available to you, on the course webpages. You are strongly encouraged to work all assigned problems before the exam.

       Project: This will be described later in the course.

Class Attendance: You are strongly encouraged to attend class, but role will not be called. However, YOU ARE RESPONSIBLE FOR ALL INFORMATION PRESENTED IN-CLASS. The web site and instructor, although available to you, are not responsible for providing you with in-class information if you choose not to attend class.

Class Preparation: A schedule of topics is given under the Schedule of the course web site. Although we may deviate from this schedule a little, if you are attending class regularly, you should still be able to use it to tell what reading you need to do before class.

Course grading policy:

Exam 1


Exam 2


Final Examination








Letter grades will be determined by the following guidelines

90 and above


80 to 90-

A- / B+ / B

70 to 80-

B- / C+ / C

60 to 70-

C- / D+ / D

60- and below

D- / F


Communication: Feel free to communicate with me in any way that is convenient to you (after class, during office hours, phone, e-mail), for questions about the course material or assignments. E-mail is fine, but response time here is variable, typically ranging from a minute to about 24 hours, depending on the nature of your questions and my schedule.

Disability Statement:

Please address any special needs or special accommodations with the lead instructor at the beginning of the semester or as soon as you become aware of the need. Those seeking accommodations based on disabilities should obtain a Student Academic Accommodation Request (SAAR) from the Iowa State University Disability Resources (DR) office. Any student who feels s/he may need an accommodation based on the impact of a disability may contact the lead instructor privately to discuss your specific needs.