  We propose a scenario-oriented approach for energy-reserve joint procurement
and pricing for electricity market. In this model, without the empirical
reserve requirements, reserve is procured according to all possible
contingencies and load/renewable generation fluctuations with the minimum
expected system total cost. The innovative locational marginal pricing approach
for loads, generations and reserve and the associated settlement process are
proposed. We show that payments from loads, payments to generators and
congestion rent will reach their balance in the basecase as well as in all
scenarios, so that revenue adequacy can be guaranteed for the system operator.
