  There are various undergoing efforts by system operators to set up an
electricity market at the distribution level to enable a rapid and widespread
deployment of distributed energy resources (DERs) and microgrids. This paper
follows the previous work of the authors in implementing the distribution
market operator (DMO) concept, and focuses on investigating the clearing and
settlement processes performed by the DMO. The DMO clears the market to assign
the awarded power from the wholesale market to customers within its service
territory based on their associated demand bids. The DMO accordingly settles
the market to identify the distribution locational marginal prices (DLMPs) and
calculate payments from each customer and the total payment to the system
operator. Numerical simulations exhibit the merits and effectiveness of the
proposed DMO clearing and settlement processes.
