Revenue reconciled optimum pricing of transmission services

Author

Perera, B.L.P.P. ; Farmer, E.D. ; Cory, B.J.

Author_Institution

Imperial Coll. of Sci., Technol. & Med., London, UK

Volume

11

Issue

3

fYear

1996

fDate

8/1/1996 12:00:00 AM

Firstpage

1419

Lastpage

1426

Abstract

This paper describes a methodology for evaluating an optimal set of transmission prices, to be charged for use of a transmission system on a time-of-use basis. The transmission prices are determined by maximising the global benefit of using the transmission system that allocates both capacity and operational costs. The security considerations are explicitly taken into account by incorporating security factors in the algorithm. The important issue of revenue recovery by the transmission utility is addressed by modifying the optimum prices without affecting the consumer behaviour. This can be achieved by setting the prices within indifference intervals over which consumers are insensitive to transmission prices. Application of the methodology is illustrated on the IEEE 24 bus test system

Keywords

costing; economics; power systems; power transmission; IEEE 24 bus test system; capacity costs; operational costs; revenue reconciled optimum pricing; revenue recovery; security factors; time-of-use basis; transmission services; transmission system; Circuits; Consumer behavior; Cost function; Educational institutions; Fuel economy; Power generation economics; Power system economics; Pricing; Security; System testing;

fLanguage

English

Journal_Title

Power Systems, IEEE Transactions on

Publisher

ieee

ISSN

0885-8950

Type

jour

DOI

10.1109/59.535683

Filename

535683