Project Management

A Comparison of Transmission Network Cost Allocation Methodologies for a Standard Test System

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Executive Summary

In Eighties, almost all electric power utilities throughout the world were operated with an organizational model in which one controlling authority - the utility - operated the generation, transmission, and distribution systems located in a fixed geographic area and it refers to as Vertically Integrated Electric Utilities (VIEU). With the liberalization of electricity market, it has become very important to determine the participants making use of the transmission network. Transmission line usage computation requires information of generator to load contributions and the path used by various generators to meet loads and losses. In the present deregulated electricity market, it is necessary to develop appropriate pricing techniques that can provide the useful economic information to market participants.

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