Review of Usage-Based Transmission Cost Allocation Methods under Open Access
Jiuping Pan, Yonael Teklu, Saifur Rahman, Fellow, IEEE, and Koda Jun
IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 15, NO. 4, NOVEMBER 2000
This paper presents an overview of usage-based methods of transmission cost allocation under open access. Allocation of transmission costs involves both technical and regulatory issues, and as a result, the methods available in the literature differ in their definition and measure of the â€œextent of useâ€ of transmission resources. The primary objective of this paper is to provide a summary of recent techniques used for designing fair and equitable access fees for the recovery of fixed transmission costs. The discussion is thus organized under two major subtopics: algorithms for transmission usage evaluation and alternative pricing strategies. Numerical examples are provided to show the results using different methods.