Cost of transmission transactions: an introduction

Abstract

Major technical issues are discussed related to the cost of transmission transactions provided by a vertically integrated electric utility company. The authors identify the components of the cost of a transmission transaction and present methodologies for evaluating them using simple examples. The major cost components of a transmission transaction are: operating cost; opportunity cost; reinforcement cost; and existing system cost. The evaluation of these components requires the development of new analytical and knowledge-based techniques.>