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Transmission cost allocation is a subject of considerable debate among various stakeholders in the electricity industry. From the perspective of state regulators and load interests, cost allocation raises questions of increased or reduced electricity rates for end-use customers. For other stakeholders, it is a question of allocating the costs to the beneficiaries of new transmission projects. Renewable energy developers view transmission cost allocation as a significant determinant to the development and delivery of renewable resources, especially wind generation, in a political climate where carbon reduction is high on the agenda. Within this frame the authors propose the compute of reactive power allocation and their losses using the distribution factor method. The comparison is performed using Bialek method, based on a topological approach for determining the contributions of generators (consumers) to individual power flow through network elements. The mathematical model has been implemented within a software tool. The novelty highlighted by the paper refers to complete AC power flow computing. The case study refers to the 12 buses test power system, heaving 6 P-U buses and 9 P-Q buses.