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This document summarizes a paper presented at the 2004 IEEE International Conference on Electric Utility Deregulation, Restructuring and Power Technologies. The paper proposes three principles for electricity markets and introduces a new pricing methodology called Electricity Value Equivalent (EVE) pricing. The three principles are: 1) both adequate capacity and market efficiency should be achieved, 2) market efficiency must be achieved first and then economic fairness, and 3) the market should remain effic

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