be overcome for this scenario to unfold. A large-scale introduction of wind power causes a number of
challenges for electricity market and power system operators who will have to deal with the variability
and uncertainty in the wind power generation in their scheduling and dispatch decisions. Wind power
forecasting has been identified as an important tool to address the increasing variability and uncertainty,
and to more efficiently operate power systems with large wind power penetration. In this paper, we
discuss how wind power is currently handled in power system and electricity market operations. In
particular, we focus on how the information from advanced wind power forecasting tools are being used
in the day-ahead and real-time operations. Based on a survey of existing practices and procedures among
selected system operators (ISO/RTOs1) in the United States, we identify important areas of improvement.