  The problem of multi-area interchange scheduling in the presence of
stochastic generation and load is considered. A new interchange scheduling
technique based on a two-stage stochastic minimization of overall expected
operating cost is proposed. Because directly solving the stochastic
optimization is intractable, an equivalent problem that maximizes the expected
social welfare is formulated. The proposed technique leverages the operator's
capability of forecasting locational marginal prices (LMPs) and obtains the
optimal interchange schedule without iterations among operators.
