Transmission Loss Recovery In A Deregulated Power System Network - A Practical Example

The re-structuring in electric power system involves many technically complicated issues ranging from system planning and operation to commercial and market areas. In a deregulated open market electric system, an additional challenge is the allocation of transmission losses. Alberta Electric System Operator (AESO), the Independent System Operator (ISO) in the Province of Alberta, Canada has introduced a new methodology based on provincial law for the allocation of transmission losses among the stakeholders effective January 1, 2006. The new model for the recovery of the transmission losses is known as "50% Area Load Methodology Using Corrected Loss Matrix" [1]. The loss factor for each generator is determined directly from the coefficients of a loss matrix derived from the system topology. The methodology is based on load flow solutions and provides fair and transparent allocation of losses. The paper describes the step by step approach of the methodology along with practical results.