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Integrated approach to transmission services pricing

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2 Author(s)
Yu, C.W. ; Dept. of Electr. Eng., Hong Kong Polytech., Kowloon, Hong Kong ; David, A.K.

The paper presents an intuitively logical split between: (a) embedded; (b) operating; and (c) expansion cost based pricing and methodologies for implementation, for transmission services. A conceptually straightforward mechanism for the equitable allocation of transmission network embedded cost recovery based on capacity-use and reliability benefit is proposed, expansion cost is charged on a long-run marginal cost basis and finally, operating cost recovery is based on short-run marginal pricing. This is followed by co-ordinating these alternatives and integrating the pricing mechanisms to achieve appropriate price signals for bulk power users of transmission systems

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Generation, Transmission and Distribution, IEE Proceedings-  (Volume:146 ,  Issue: 3 )