MANAGEMENT OF MULTIPLE CONGESTED CONDITIONS IN UNBUNDLED OPERATION OFA POWER-SYSTEM

This paper studies congestion management based on congestion pricing a s may be done by an Independent System Operator. Four main concepts ar e discussed: congestion pricing can lead to the same solution as an Op timal Power Flow, pricing need not have cost information available, go od estimates of nonlinear cost coefficients are necessary, and pricing for congestion management is separable from pricing for the purpose o f transmission network revenue reconciliation. Emphasis is on the dete rmination of sufficient information by observation of the behavior of the market to permit optimum pricing without explicit communication am ong parties, and without generators ever being explicitly concerned ab out the relief of flow congestion. Results from simulated experiments are presented.