Over the past several decades, many techniques and approaches have been proposed and implemented for load and price forecasting. The objective of all of these methods was load and price forecasting with minimal error. However, researchers face several challenges in achieving this goal. For price forecasting, the main challenge is to forecast electricity prices accurately in a deregulated electric power market with volatile aspects. Decentralized or deregulated markets are very volatile systems. Hence, pattern following and accurate forecasting of electricity prices are difficult tasks using ordinary methods. In this thesis, a novel approach is introduced and implemented to overcome the challenges inherent in accurate price forecasting. This novel approach involves innovations in forecasting to improve the spot power price forecasting accuracy in a competitive market. To investigate the applicability and effectiveness of this technique, Multiple Linear Regression (MLR) and Artificial Neural Networks (ANN), two well-known forecasting techniques, are developed.