Wheeling Rates Based on Marginal-Cost Theory

Abstract

Knowledge of what rates for wheeling electric power should be, if based on marginal costs, is vital in the debate on how wheeling should be priced. The authors present extensive computations of marginal costs. Sensitivities to losses, constraints, load levels, amount of power wheeled, revenue reconciliation, etc. are examined in the context of two case studies. Revenue reconciliation for capital recovery is described briefly. >