A new multi-area production costing method [for electric utilities]

A novel multiarea joint dispatch production costing method is reported. This proposed method explicitly models random unit forced outages, joint unit ownership, and transmission interconnection limitations. Using a reduced set of feasibility inequalities, the transmission limitations are enforced under all possible system states without full state enumeration. Based on this proposed method, an experimental computer model has been successfully implemented in ANSI Fortran 77. This experimental model evaluates the following: the expected power generation of each unit; the maximum and minimum expected unserved energy for each area; the expected system unserved energy and the expected system operational cost of savings; and the maximum and minimum expected operational cost savings for each area. This experimental computer model was illustrated by simulating an example five-area system