A modified postage-stamp coverage method for local load case of transmission service charges

The conventional postage-stamp coverage method assumes that the entire transmission system is used in wheeling, irrespective of the actual transmission facilities that carry the transaction. In order to achieve a fair transmission service charge methodology, modification need to be implemented on the conventional postage-stamp coverage method for a system that consists of local load case. The purpose of this modification is to trace the actual usage of an individual generator injecting power to the transmission line and charge the generator based on the actual amount of power usage in the transmission network. Two case studies based on an idealized 3-bus system and 10-machine IEEE 39-bus (New England) system are used to illustrate the proposed approach. The results show that with the proposed pricing approaches reflect a fair and equitable transmission pricing method as the generators are charged based on the actual usage in the transmission lines.