An analytical approach for transaction costs allocation intransmission system

摘要

This paper proposes an analytical approach for allocatingntransmission transaction costs among users in transmission services. Thenproposed method allocates the transaction costs over the participantsnproportional to the ratio of incremental power flow caused by eachnparticipant and the total power flows on a designated transmission line.nTo determine the individual participant's impact on the transmissionnpower flows, the line utilization factors (LUFs) of each participant arendeveloped from a set of power flow equations. In the developednframework, one can directly evaluate the sensitivity of the flow on anline with respect to power generation at all buses. Although thendeveloped allocation rule is very similar to the existing MW-milenmethod, especially to the modulus method, it does not require load flownanalysis to be performed whenever each wheeling transaction isnexercised. The main advantage of the developed method lies in itsncapability to consider multiple wheeling transactions simultaneously