Cost allocation of transmission usage based on current magnitude

Transmission is one of the key utilities in the electricity market mechanism. Generally, it is managed by a provider that is monopoly but not in business. However, all costs that have been embedded in the transmission must be refunded by all transmission users, or generators. The paper proposes a method for determining the cost allocation of transmission usage with current magnitude as the basis for calculation. As a result, current flow contributions of each generator on the lines must be determined. Then it applies a method to decompose the actual current, of the load flow results, on every line. Mathematically, the proposed method has been illustrated clearly in this paper without approximations and assumptions. While the formulations have been tested with 5-bus system and the results have been compared to the published methods. The test results show that the proposed method gave slightly different results with the published methods. But it is in line with what were expected.