Title :
Integrated approach to transmission services pricing
Author :
Yu, C.W. ; David, A.K.
Author_Institution :
Dept. of Electr. Eng., Hong Kong Polytech., Kowloon, Hong Kong
fDate :
5/1/1999 12:00:00 AM
Abstract :
The paper presents an intuitively logical split between: (a) embedded; (b) operating; and (c) expansion cost based pricing and methodologies for implementation, for transmission services. A conceptually straightforward mechanism for the equitable allocation of transmission network embedded cost recovery based on capacity-use and reliability benefit is proposed, expansion cost is charged on a long-run marginal cost basis and finally, operating cost recovery is based on short-run marginal pricing. This is followed by co-ordinating these alternatives and integrating the pricing mechanisms to achieve appropriate price signals for bulk power users of transmission systems
Keywords :
costing; power transmission economics; power transmission reliability; tariffs; bulk power users; capacity-use; embedded costs; expansion costs; integrated approach; long-run marginal cost; operating costs; pricing mechanisms; reliability benefit; short-run marginal pricing; transmission services pricing; transmission systems;
Journal_Title :
Generation, Transmission and Distribution, IEE Proceedings-
DOI :
10.1049/ip-gtd:19990058