Transmission system management and pricing: new paradigms and international comparisons

The transmission system, once the necessary but nearly invisible component of the electric power system is now the focus of physical/electrical and financial attention of the utility and, more significantly their potential suppliers/customers. This paper has three primary objectives. The first is to present a discussion of a new paradigm for the electric power industry. The second is to review transmission pricing options, specifically those utilizing either long run (LRMC) or short run (SRMC) marginal cost based approaches. The third is to provide a review of innovative approaches to transmission asset management and finance as seen from international experience