Characterization and distribution model for fuel costs in electricity market

The ever-increasing complexity in power systems requires novel optimization and control tools. These tools must be validated prior to application to real power systems. Such validation requires access to a realistic, high fidelity power system network model. Fuel cost is an important element for such a model, but is often difficult to obtain due to confidentiality constraints. This paper advances a technique to develop the fuel cost statistical characteristics without compromising the essential confidentiality and proprietary information of utilities. The algorithm of fuel cost calculation introduced in this paper utilizes publicly available resources and provides distributions of fuel cost for various categories of fuel types in distinct geographical regions.