BENEFIT OPTIMIZATION OF CENTRALIZED AND DECENTRALIZED POWER-SYSTEMS IN A MULTI-UTILITY ENVIRONMENT

The objective of this paper is to examine the theoretical bases for be nefit optimization in centralized and decentralized electric power sys tems. In a centralized (single control) power system, we use cost, rev enue, and profit as system performance criteria for benefit optimizati on, and compare the conditions. The results show that conventional cos t minimization is not necessarily equivalent to benefit optimization b ased on other criteria. In a decentralized (multi-utility) power syste m, we investigate benefit optimization and its allocation at the uncon strained economic optimum, economic optimum with constraints, and cond itions under which the solution is an economic suboptimum. We use the data from the EPRI Regional Systems to show practical examples of the benefit allocation with wheeling transactions. Although some rules are better for society than others, there still is not one right answer t o determine the rules for benefit optimization.