MVA based transmission supplement cost allocation

The unbundling of services provided by utilities in recent years has become a major pressure in deregulated power industry. How to unbundle the transmission services is the most complicated and difficult. In this paper, a MVA based supplement cost allocation method based on the components of the transmission complex powers is used to recover the transmission supplement cost from generators. The supplement cost is divided into two portions including the cost of capacity-use under the normal state and the cost of system-benefit under the contingency states. The components of complex power are computed by the generalized generation distribution factors (GGDFs) and the proposed reactive power distribution factors (RPDFs). Several systems had been tested and the results of 4 bus network are reported in this paper.