Probabilistic generating capacity cost of service allocation

A procedure is presented for cost-of-service allocation at hierarchical level I (HLI) which utilizes a probabilistic technique similar to that used by many utilities for generating-capacity planning. The procedure is illustrated by application to the IEEE Reliability Test System (RTS). A brief introduction to the deterministic techniques presently utilized by most utilities in HLI cost-of-service allocation is provided. The results obtained by applying selected methods to the IEEE RTS are illustrated and compared