AN ANALYTICAL APPROACH FOR TRANSACTION COSTS ALLOCATION IN TRANSMISSION-SYSTEM

This paper proposes an analytical approach for allocating transmission transaction costs among users in transmission services. The proposed method allocates the transaction costs over the participants proportio nal to the ratio of incremental power flow caused by each participant and the total power flows on a designated transmission line. To determ ine the individual participant's impact on the transmission power flow s, the Line Utilization Factors (LUFs) of each participant are develop ed from a set of power flow equations. In the developed framework. one call directly evaluate the sensitivity of the flow on a line with res pect to power generation at all buses. Although the developed allocati on rule is very similar to the existing MW-mile method, especially to the Modulus Method, it does not require to perform load flow analysis whenever each wheeling transaction is exercised. The maul advantage of the developed method lies in its capability to consider multiple whee ling transactions simultaneously.