Transaction based power flow analysis for transmission utilization allocation

This paper proposes a framework of transaction based power flow analysis (TBPF) for transmission utilization allocation. The TBPF utilizes distributed purchase-sale pairs to replace the role of a single slack bus on energy imbalance during power flow calculation iterations. To compare with conventional power flow analysis, accurate allocation of use-of-transmission is part of a TBPF solution. In particular, the TBPF is able to identify interaction components among transactions as well as the effect of reactive power on transmission losses and active power flows. Two allocation rules for cross terms are proposed to hedge firm or existing transactions against market risk. The standard WSCC 9 bus system is used to demonstrate the performance of the TBPF.