MARGINAL PRICING AND SUPPLEMENT COST ALLOCATION IN TRANSMISSION OPEN ACCESS

The application of marginal costing to transmission pricing in open ac cess schemes requires the collection of a supplement to finance the tr ansmission systems. The paper describes the application of marginal co st based pricing in the CHilean power system and the difficulties face d in allocating the supplement among parties involved. Alternatives me thods for defining the allocation are formulated. Generalized generati on and load distribution factors for cost allocation are formulated an d implemented. The methods are applied to allocate payments for transm ission services provided by the transmission network and by a distribu tion company.