Traceable flow method in determination of congestion cost assignment in open access power system network

In the vertically integrated monopoly, congestion costs were either ignored or hidden as bundled into the transmission charges that in turn were considered as a shortcoming in previous transmission pricing schemes. It was considered a shortcoming because it did not provide a true price signal allocation of transmission resources or allocated congestion costs to transmission customer who were not causing the congestion. An electricity tracing method has been introduced which allows one to trace the flow of electricity in a meshed network. In this paper, by using this algorithm, the congestion cost in the pool structure is calculated. Finally at the end of the paper this method is applied to a typical system and the results are presented.