Transmission-Distribution Pricing Regulation Based on Optimal Fuzzy Algorithm and DEA

Learning from the experience of transmission-distribution (T&D) regulation in developed countries and actual situation in China, an incentive pricing regulation model based on the optimal fuzzy algorithm and data envelopment analysis (DEA) for T&D utilities is presented in this paper. First, FC²R model based on C²R method of DEA is established in which L-R fuzzy number and is integrated. Second, the factor of T&D development is taken into account in the regulation model in respect that the rapid development of T&D utilities in China. Then, the numerical example is given to prove its feasibility and validity.