DocumentCode :
923642
Title :
Allocation of fixed costs in distribution networks with distributed generation
Author :
Sotkiewicz, Paul M. ; Vignolo, J. Mario
Author_Institution :
Dept. of Econ., Univ. of Florida, Gainesville, FL, USA
Volume :
21
Issue :
2
fYear :
2006
fDate :
5/1/2006 12:00:00 AM
Firstpage :
639
Lastpage :
652
Abstract :
In this paper, we propose a method for the allocation of fixed (capital and nonvariable operation and maintenance) costs at the medium voltage (MV) distribution level. The method is derived from the philosophy behind the widely used MW-mile methodology for transmission networks that bases fixed cost allocations on the "extent of use" that is derived from load flows. We calculate the "extent of use" by multiplying the total consumption or generation at a busbar by the marginal current variations, or power to current distribution factors (PIDFs) that an increment of active and reactive power consumed, or generated in the case of distributed generation, at each busbar, produces in each circuit. These PIDFs are analogous to power transfer distribution factors (PTDFs). Unlike traditional tariff designs that average fixed costs on a per kWh basis across all customers, the proposed method provides more cost-reflective price signals and helps eliminate possible cross-subsidies that deter profitable (in the case of competition) or cost-effective (in the case of a fully regulated industry) deployment of DG by directly accounting for use and location in the allocation of fixed costs. An application of this method for a rural radial distribution network is presented.
Keywords :
busbars; costing; distributed power generation; power consumption; power distribution economics; MW-mile methodology; active power; busbar; cost-reflective price signals; distributed generation; distribution networks; fixed costs allocation; medium voltage distribution level; power to current distribution factors; power transfer distribution factors; reactive power; transmission networks; Circuits; Costs; Current distribution; Distributed control; Distributed power generation; Load flow; Medium voltage; Power generation; Reactive power; Signal design; Allocation of fixed costs; distributed generation (DG); distribution networks;
fLanguage :
English
Journal_Title :
Power Systems, IEEE Transactions on
Publisher :
ieee
ISSN :
0885-8950
Type :
jour
DOI :
10.1109/TPWRS.2006.873112
Filename :
1626368
Link To Document :
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