A load flow based method for calculating embedded, incremental and marginal cost of transmission capacity

Abstract

This paper describes the principles of a load flow based method for allocating the cost of transmission capacity. The method estimates the usage of each transmission facility with cost defined on a per facility basis. Embedded, incremental and marginal cost of transmission capacity are defined and compared to each other. A discussion of other load flow based methods and their application to marginal cost is included.< <ETX xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">&gt;</ETX>