Wheeling charge evaluation by using proposed MW-mile method considering transmission losses and load power factor variation

Today's electric utility industry is drastically changing due to power system restructuring. The main feature of this power system restructuring is to create a competition among the market players. It is necessary to develop a proper pricing strategy to maintain reliability and secure operation. It is a key and challenging task to allocate the charges for wheeling participants accurately. One of the pricing method widely used in India is MW- mile method for wheeling charge evaluation. This method is based on impact of power flow in a network and considers actual usage of the transmission line. There are three power flow approaches of MW-mile method namely absolute power flow, reverse power flow, dominant power flow. This method does not consider the impact of transmission loss as well as power factor variation of recipient load while evaluating the wheeling charges for the corresponding three power flow approaches. This paper compares the three power flow approaches with inclusion of transmission losses along with fluctuating power factor. The recipient should necessarily get benefit for operating their load at improved power factor. It motivate the recipient to operate their load with opitimal power factor. It also make sure that recipient should get penalty for operating the load at poor power factor. To get this accurate wheeling charge, this paper include the impact of transmission loss of line associated with power factor variation term which is set by the regulator. Newton Raphson algorithm is preferred to evaluate the line flows and line losses of the IEEE-30 bus system and corresponding wheeling charges are evaluated by using MW-mile method for all the three power flow approaches after inclusion of impact power loss as well as correction term of power factor.