Real time optimal interruptible tariff mechanism incorporating utility-customer interactions

An optimal power flow based framework is proposed to determine the incentiv e rates of an interruptible tariff mechanism (ITM) on an hour-to-hour basis . Interaction between the utility and customers contracting interruptible l oad is incorporated in the analytical framework by formulating customer res ponse functions to the ITM. It is shown that ITM is able to reduce costs an d aid in system operation during peak load periods. The IEEE 30-Bus system, considerably modified to represent different customer characteristics, has been used for the study.