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This effort will develop a framework for asset and system risk management that can be incorporated into current electricity system operations to improve economic efficiency and establish an Electric Assets Risk Bureau. We will leverage scoring and ratings from banking and financial institutions alongside current optimization methods in dispatching power systems to help system operators and electricity markets schedule resources. This approach is based on the observation that there are major discrepancies between the power scheduled by a system operator and the actual power generated/consumed. These discrepancies—exacerbated by unplanned contingencies (e.g., natural disasters)—are caused by multiple factors, including the different financial, environmental and risk preferences of power producers, consumers, and aggregators. Our objective is to develop a framework that counteracts two failures in electricity system operations: imperfect information and missing markets for products. The technical approach includes five tasks. Tasks 1 and 2 support developing coherent risk scores at the asset level with historical data collected for this project. Tasks 3, 4, and 5 incorporate scoring into decision-making at the system level. The proposed effort will achieve PERFORM’s Program Objectives because the proposed outputs and algorithms do not exist in the electricity industry and are an innovative approach to managing risk. Since the acknowledged need to better assess and act upon risk profiles for grid assets has not been met by industry, this project will also impact ARPA-E's Mission Areas, including improving energy efficiency and giving the U.S. a technological lead in advanced energy technologies.