Abstract:
This paper presents different suggested transmission cost allocation (TCA) schemes for
distributing the transmission usage costs to the system individuals. Different
independent system operator (ISO) visions are presented using the proportional rata and
flow-based TCA methods. There are two flow-based TCA schemes (FTCA). The first
FTCA generalizes the equivalent bilateral exchanges (EBE) concepts for lossy networks
through two-stage procedure. The second FTCA approach is based on the modified
sensitivity factors (MSF). These factors are developed from the actual measurements of
power flows in transmission lines and the injected power at different buses. The
proposed schemes exhibit desirable apportioning properties and are easy to implement
and understand. Case studies based on two test systems, which are: 5-bus and IEEE 14-
bus test systems, are carried out to show the capability of the proposed schemes for
solving the TCA problem.