The long-term impact of transmission pricing

Transmission pricing has been one of the major issues on the ongoing debate about deregulation and privatization. Many papers have dealt with the static nature of the tariff using the incremental and the embedded cost approaches. However, few of them have focused on the dynamic aspects of the tariff...

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Bibliographic Details
Published in:IEEE transactions on power systems 1998-11, Vol.13 (4), p.1514-1520
Main Authors: Marangon Lima, J.W., de Oliverira, E.J.
Format: Article
Language:English
Subjects:
Applied sciences
Costs
Electrical engineering. Electrical power engineering
Electrical power engineering
Environmental economics
Exact sciences and technology
Inventory control, production control. Distribution
Investments
Monopoly
Operation. Load control. Reliability
Operational research and scientific management
Operational research. Management science
Power generation economics
Power networks and lines
Power system dynamics
Pricing
Privatization
Uncertainty
Vehicle dynamics
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Summary:Transmission pricing has been one of the major issues on the ongoing debate about deregulation and privatization. Many papers have dealt with the static nature of the tariff using the incremental and the embedded cost approaches. However, few of them have focused on the dynamic aspects of the tariff and, therefore, on its impact on the long-term expansion planning of both generation and transmission. The main target of this paper is to address some interesting topics about the effect of the transmission pricing methods on system cost in this new environment where generation is treated as an open market and transmission as a monopoly. Some examples with the Brazilian power system illustrate the main points shown in this paper.
ISSN:0885-8950
1558-0679
DOI:10.1109/59.736299