The economic dispatch with consideration of transmission service charge for a generation company

This paper presents a novel economic dispatch strategy for a generation com pany which owns several units with different fuel costs, efficiency, and lo cations, and has a bilateral contract with several large customers. The pro posed strategy not only considers the generation cost, but also takes into account the wheeling charge for the use of the transmission system. A modif ied megawatt-mile method is proposed to calculate the wheeling cost in this paper. Finally, the calculation results of economic dispatch for a generat ion company with two units and their loads in a real power system will be d emonstrated.