Optimal dispatch under transmission contracts

Open transmission access is now the most topical issue in power system dere gulation. Power system operation poses the greatest challenge to a competit ive environment incorporating open transmission access and there art: some fundamental operational problems that are still unresolved. This paper seek s to provide an approach to the power dispatch problem in a structure domin ated by bilateral and multilateral transmission contracts. A framework for price-based operation under these conditions is developed and a methodology for optimal transmission dispatch is proposed. The case study results illu strate that the proposed market arrangement and operating mechanisms are co mpatible with this new business environment.