Practice and theory for pricing wheeled power

Knowledge about what rates for wheeling electric power is vital in the debate on wheeling policy, in order to allow closer coordination and to improve economic efficiency. The author describes the principles and practice of a new methodology for the evaluation of wheeling rates. This methodology does not assume the existence of a spot pricing based energy market place. The method avoids the direct evaluation of the maintenance costs and quality of supply costs. The theory presented is suitable for different wheeling situations. Numerical results of wheeling rates are presented