CHAPTER

SIX
TRANSMISSION PRICING

6.1

Introduction

n the restructured electricity market, transmission company plays a vital

role due to its involvement in the determination of charges for wheeling

transactions. In the traditional regulated power market, wheeling transactions

have accounted for a small portion of the overall transmission network capacity
usage. However, recent trends of unbundling have stimulated renewed interest in pricing of transmission services, particularly as it relates to wheeling
transaction [85]. Wheeling transaction is defined as the use of transmission
or distribution facilities of a system to transmit power of and for another
entity or entities. It may also be defined as, Wheeling is the use of some
partys transmission system(s) for the benefit of the other parties [125, 140].
Wheeling refers to transmission of real and reactive power from seller to
buyer involving transmission network of a third party. Wheeling cost is due
to redispatching of generators and transmission losses. Transmission pricing is
carried out:
1. to recover the capital and operating costs
76

Chapter 6. Transmission pricing

77

2. to encourage efficient use and investment

3. to provide equal opportunity to all users
4. to offer a simple and understandable price structure
5. for easy implementation.
Before determining the cost of wheeling, it is necessary to find the feasibility
of a proposed firm transaction. As transmission pricing involves the wheeling
cost, the knowledge of ATC is very important for the utilities which help
them to reserve their transmission services. A detailed account of ATC and
its estimation has been given in chapter 5.
Many methods have been proposed in the literature [83, 84, 87, 141] to
evaluate the costs of transmission transactions or wheeling transactions. These
methods are broadly classified as incremental or marginal cost method and
embedded cost method. Marginal cost methods involve short run marginal
cost (SRMC) and long run marginal cost (LRMC).
SRMC pricing of transmission service is highly volatile, fails to recover
the total incurred network costs and provide perverse economic signals to
the transmission company [142]. On the other hand LRMC pricing is a
formidable task and involves more assumptions about the costs and scenarios
of expansion [141]. Therefore, embedded cost methods have been widely used
all over the world. These methods offer several benefits such as being practical
& fair to all parties and provide an adequate remuneration for transmission
systems. However, they neither reflect the degree to which these facilities
are over utilized nor provide efficient means to allocate resources to relieve
constrained transmission capacity. The embedded cost methods are classified
as postage stamp method, contract path method, distance MW -Mile method
and power flow based MW -Mile method.
Postage stamp method [83] assumes that the entire transmission system is
used in the wheeling transaction irrespective of the actual transmission facilities

Chapter 6. Transmission pricing

78

which carry out the transaction i.e., the cost of wheeling is determined based
on the amount of transacted power independent of the distance or location.
This method is simple and straightforward but ignores actual system operation
thus masking the actual cost incurred by a transaction.
Contract path method [89] selects a specific continuous path between the
seller and buyer for wheeling transaction. All changes in the power flows
through the transmission facilities which are not along the contract path are
ignored. The path chosen must have sufficient unused capacity to carry the
amount of power to be transported. The selection of the contract is, however,
not usually based on the power flow study to identify the facilities actually
involved in the transaction. This method is simple and provides a distinct
way of settling financial liabilities to influenced parties along the contract
path. However, majority of the transacted power may actually flow through
transmission lines outside the contracted path and hence the actual operating
environment may be ignored. It overlooks the possibility of outages occurring
in the contract path, which would impose additional flows on neighboring
systems which are not parties of the contract path.
Distance based MW -mile method [141] allocates the transmission charges
based on the magnitude of transacted power and the geographical distance
between the points of delivery and receipt, i.e., the product of power due to
a specific transaction times the distance this power travels in the network.
This method promotes the maximum use of the existing system and provides
incentives to participants to stay in the integrated pool. It suffers with lack
of evident relationship between the geographical distance and the actual
transmission facilities involved in a transaction.
Flow based MW -mile method [88] allocates the charges of each transmission
facility to a wheeling transaction based on the extent of use of that facility
by the transaction. These allocated charges are then added up over all

Chapter 6. Transmission pricing

79

transmission facilities to evaluate the total price for using the transmission
system. The charges are determined as a function of magnitude, the path, and
the distance traveled by the transacted power. Two power flows are executed
successively, with and without wheeling, to get the changes in MW flows in
all transmission lines. This method emulates the actual system operating
conditions, insensitive to the order of wheeling transactions as each transaction
is treated separately, provides better cost signals for long and short distance
wheeling customers and encourages the economic use of the transmission
network capacity by giving a higher cost signal to transactions with several
delivery points.
In the flow based MW -mile method, the changes in power flow in each
facility, due to a transaction are multiplied by the length of each facility. This
implies that the transmission of same power over a transmission line with
long length will have more weightage over short length. But the transmission
lines may have different type of conductor with different thermal rating &
cost, leading to different weightages for the same length. This drawback can
be avoided by replacing the length of the line with the cost of the conductor.
Hence instead of multiplying the changes of power flow with length of the
line, the changes in power flow should be multiplied by its cost (i.e., average
revenue requirement per hour of the facility). With this idea, two methods
called MW -cost method and MVA-cost method have been proposed in this
chapter and applied on IEEE 30 bus system and Indian utility 62 bus system.

6.2

Problem Formulation

Before computing the transmission pricing, it is necessary to determine the

possibility of feasible wheeling transactions. The necessary solution of OPF
is obtained as discussed in chapter 3. A detailed account of bilateral and

Chapter 6. Transmission pricing

80

multilateral transactions can also be found in chapter 3. The magnitude of

feasible wheeling transaction is determined by computing the available transfer
capability of the systems. The results of ATC for the test systems can be found
in chapter 5. Then by using the proposed embedded cost methods, the wheeling
cost per hour is computed for the feasible simultaneous bilateral/multilateral
transactions.

6.2.1

Postage stamp method

The postage stamp rate of transmission service may be calculated by summing

up all transmission costs and dividing by system peak demand to get a flat
amount per MW. The customer transmission charge is given by the magnitude
of transacted power involved in the customer transaction multiplied with
postage stamp rate as given by

W Ct = T C

Pt
Ppeak

(6.1)

where
W Ct transmission or wheeling charge for transaction ($/hr)
T C total transmission charges ($/hr)
Pt magnitude of transacted power (MW )
Ppeak system peak demand (MW ).

6.2.2

Contract path method

In the contract path method, transmission service provider and the customer
agree on a fictitious path (contract path) for the transmission service. The
contract path interconnects the points of injection and receipt, although it
is defined virtually without power flow studies. Once the contract path
has been determined, all or a part of the transmission cost related to the

Chapter 6. Transmission pricing

81

specified path is assigned to the transaction and wheeling charges are calculated
according to the equation:

W Ct =

X
k

T Ck

Pt
Ppeak

(6.2)

where
W Ct transmission or wheeling charge for transaction ($/hr)
T Ck transmission charge of the contract path k ($/hr)
Pt magnitude of transacted power (MW )
Ppeak system peak demand (MW ).

6.2.3

Proposed embedded cost methods

The postage stamp and contract path methods are not considering the actual system operating condition for the estimation of transmission charges.
Hence the transmission charges determined using these methods provide an
incorrect economic signal to the transmission customers. Also in the power
flow based MW /MVA-mile methods, the charges for each transmission facility
to transmission transaction is allocated based on the extent of use of that
facility by these transactions. But in actual practice, the transmission lines of
same length may have different capacity & costs. Hence they have different
weightage for cost allocation. Moreover, modern power systems are facilitated
with FACTS devices to control the power flow in the system. In such cases,
the cost of these equipments cannot be so easily replaced by their equivalent
length. Most of the time, this involves some approximations which sacrifice
the accuracy of flow based mile methods. Hence it is proposed that instead of
multiplying the changes in the flow by length, it should be multiplied by its
cost i.e., the average revenue requirement per hour of the facility. This power
flow based embedded cost method may be called flow cost method with two

Chapter 6. Transmission pricing

82

sub categories:
1. MW -cost method
2. MVA-cost method.
6.2.3.1

MW -Cost Method

In this method, two power flows are executed successively, with and without
the wheeling transaction T and the changes in MW flows in all transmission
line facilities are noted. The transaction cost in $/hr or |/hr for a transaction
T is given by the equation
C

(M Wf )T Cf
P P
W Ct =
8760 ( (M Wf )T Cf
f

(6.3)

where
W Ct transmission or wheeling charge for transaction ($/hr or |/hr)
C total transmission annual revenue requirement ($/yr or |/yr)
(4M Wf )T change in real flow in facility f due to transaction T (MW )
4M Wf real flow in facility f (MW )
Cf Average revenue requirement per hour of the facility f ($/hr or |/hr).
6.2.3.2

MVA-Cost method

It has been recognized that the use of transmission resources is best measured
by monitoring both real and reactive power. The proposed MVA-cost method
can consider both active and reactive power loading of the transmission network
during a transaction and allocate embedded cost of transmission accordingly.
In this method, two power flows are executed successively, with and without
the transaction T , & the changes in MVA flows in all transmission line facilities
are noted. The transaction cost W Ct in $/hr or |/hr for a transaction T is
given by the equation

Chapter 6. Transmission pricing

P

(M V Af )T Cf
P P
W Ct =
8760 ( (M V Af )T Cf
C

where

83

(6.4)

(4M V Af )T change in MVA flow in facility f due to transaction T (MW )

4M V Af MVA flow in facility f (MW ).
In this method, a transaction causing more reactive power loading will be
charged more than other transactions. This method is the most fair and
realistic among all the above methods including MW -cost method.

6.3

Simulation Results

The study has been carried out on IEEE 30 bus and Indian utility 62 bus
systems. For the present study, reactive power demand at load buses is
considered to be constant. The optimum generation for the minimum cost of
generating units were obtained initially using OPF based differential evolution
algorithm with transmission flow constraints as explained in chapter 3. The
simulation parameters of DE can be found in Table 3.1.

6.3.1

IEEE 30 bus system

The proposed algorithm is implemented on IEEE 30 bus system (Figure 3.3).

The line data (Table B.1), bus data (Table B.2) and cost coefficients (Table B.3)
for this system can be found in Appendix B. Four simultaneous bilateral
wheeling transactions are carried as in Table 6.1. The real and apparent
power flows for the base case and the corresponding wheeling transactions are
given in Tables 6.2 and 6.3 respectively. Cost allocation to these wheeling
transactions are determined in $/hr by the proposed flow cost methods and
are compared with postage stamp method and contract path method as given

Chapter 6. Transmission pricing

84

in Table 6.4. The cost allocation to transaction TB4 is found to be negative

which reduces the system losses and thus favouring the system.
Table 6.1: Bilateral transactions IEEE 30 bus system
Transaction
TB1
TB2
TB3
TB4

From
22
20
30
13

To
4
3
10
8

Magnitude of transaction (MW )

10
15
20
30

Table 6.2: Real power flows for various transactions IEEE 30 bus system
Line
number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Bus number
From To
1
2
1
3
2
4
2
5
2
6
3
4
4
6
12
4
5
7
6
7
6
8
6
9
6
10
6
28
28
8
11
9
9
10
10
20
10
17
10
21
22
10
13
12
12
14
12
15

Base
case
12.6567
13.3615
13.1954
21.4843
17.2115
10.8593
17.4153
1.1076
21.2411
1.8155
21.6327
5.835
3.3343
1.7302
8.5476
0
5.835
5.8177
1.4308
8.6121
12.6913
37
4.9741
8.5774

TB1
28.9057
21.5237
18.4479
26.4122
23.1311
18.8802
20.4624
8.9917
26.0559
2.8955
22.1692
13.2135
7.5505
3.1016
8.0096
0
13.2135
16.479
3.1656
8.4354
13.3445
37
5.7953
11.5888

TB2
TB3
TB4
19.0303 23.0665 19.0848
16.3551 18.5482 0.3967
14.9589 16.4968 5.8833
23.5082 24.6719 19.6627
19.753 21.0502 5.6392
13.8099 15.9642 2.8025
20.9644 19.8587 5.0271
0.0213
4.7812
2.5547
23.223 24.3586 20.5961
0.1332
1.2407
0.3214
23.3593 21.9967 12.192
6.2746 10.8741 6.3826
3.5855
6.2138
3.6472
7.2742
2.6744
4.0314
6.8105
8.1824
2.2389
0
0
0
6.2746 10.8741 6.3826
5.9555
14.233
6.1111
1.3574
0.4743
2.1356
9.434
8.507
20.4206
11.2713 13.1482 15.615
37
37
37
5.1859
6.0362
4.8397
9.42
12.4324 7.9793
Continued on next page

Chapter 6. Transmission pricing

Line
number
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41

85

Table 6.2 continued from previous page

Bus number
Base
From To
case
TB1
TB2
TB3
12
16 11.1409 17.4076 11.2154 12.1126
15
14
1.2626
0.4499
1.0526
0.2122
15
18
9.259
14.0062 9.1188 14.7769
23
15 10.3417 11.3448 9.1437 11.0408
16
17
7.6271
5.8748
7.7015
8.5964
18
19
5.9566 10.5741 5.8192
7.7196
20
19
3.5734
1.0001
3.71
1.8239
22
21
8.9345
9.1127
8.116
9.0408
24
22
0.0828
0.9235
2.2027
0.6521
23
24
5.6583
4.6552
6.8563
4.9592
25
24
3.1926
5.0622
0.2617
4.4764
25
26
3.5464
3.5464
3.5464
3.5464
27
25
6.7913
8.6918
3.3079
8.0952
27
29
6.2497
6.2497 10.6829 6.2497
27
30
7.0465
7.0465
13.334
7.0465
27
28
6.8225
4.922
0.4148
5.5186
29
30
3.7577
3.7577
8.021
3.7577

TB4
15.4263
1.3961
8.9607
10.7683
6.9142
5.665
3.8634
9.1233
0.1967
5.2317
3.7368
3.5464
7.3435
6.2497
7.0465
6.2703
3.7577

Table 6.3: Apparent power flows for various transactions IEEE 30 bus
system
Line
number
1
2
3
4
5
6
7
8
9
10
11
12
13

Bus number
From To
1
2
1
3
2
4
2
5
2
6
3
4
4
6
12
4
5
7
6
7
6
8
6
9
6
10

Base
case
14.5077
13.6872
14.0039
22.0652
18.7261
12.1143
21.7283
1.4926
21.8061
5.0088
20.0476
5.7104
3.2631

TB1
15.2609
13.4374
13.4533
22.5156
19.3197
11.8538
26.5599
2.522
22.2466
5.2082
31.1252
9.5135
5.4363

TB2
TB3
TB4
17.5149 16.3619 28.8614
11.9456 14.2696 8.5149
14.1019 14.1189 4.7432
23.2823 22.5133 12.6234
20.2171 19.3774 7.7272
24.6849 12.5528 12.0169
27.6327 23.9348
14.07
5.2786
3.5988 21.5002
22.9949 22.2452 12.5447
5.0397
5.5359 14.1358
31.1222 34.0713 20.3397
11.1274 0.9799
1.9095
6.3585
0.5599
1.0911
Continued on next page

Chapter 6. Transmission pricing

Line
number
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41

Table 6.3 continued from

Bus number
Base
From To
case
TB1
6
28
4.3921
4.1982
28
8
10.6007 11.9592
11
9
0
0
9
10
5.7151
9.5285
10
20
6.8312
6.6991
10
17
5.1596
5.4467
10
21
8.5497 11.3916
22
10 16.5628 14.4974
13
12 38.7798 38.5535
12
14
5.0572
5.4336
12
15
8.5127 10.1555
12
16 11.5068 12.8719
15
14
1.4295
1.2231
15
18
9.4373 10.0727
23
15 11.8016 10.8854
16
17
7.6713
9.1157
18
19
6.0034
6.3562
20
19
4.5129
4.4488
22
21 14.8298 13.3307
24
22
6.688
8.3217
23
24
5.7873
6.9425
25
24
3.8354
4.8455
25
26
4.2657
4.2657
27
25
7.1546
7.9904
27
29
6.4669
6.4669
27
30
7.2459
7.2459
27
28
8.6432
8.6419
29
30
3.8045
3.8045

86
previous page
TB2
4.3474
11.9653
0
11.1339
16.829
5.0134
8.466
17.2799
38.7203
6.0783
12.4422
12.876
1.0018
14.6772
12.5059
9.0617
10.8145
3.285
15.2142
7.0876
5.5005
4.8889
4.2657
8.0386
6.4669
7.2459
8.7931
3.8045

TB3
13.4005
9.2943
0
0.982
8.2225
6.218
10.9182
13.9452
38.7153
5.1238
8.9155
8.9559
1.4027
8.0754
10.5948
5.0308
4.3498
5.787
13.1505
7.1007
7.5665
6.2306
4.2659
6.0744
15.6634
20.296
10.2755
12.4653

TB4
5.5641
10.5292
0
1.9016
5.8304
7.3066
8.1344
16.2647
38.046
6.0857
12.6522
16.8443
1.1201
11.8445
9.8367
13.1668
8.1506
4.0221
14.7054
7.1776
8.1788
1.853
4.2657
5.6368
6.4669
7.2459
9.0282
3.8045

Table 6.4: Wheeling charges ($/hr) IEEE 30 bus system

Transaction
TB1
TB2
TB3
TB4

Postage stamp
method
336.82
505.241
376.656
1010.48

Contract path
method
315.775
473.613
631.917
947.3278

MW-cost
method
450.401
560.53
1075.44
-1025.48

MVA-cost
method
470.166
535.425
1135.29
-1192.3

Chapter 6. Transmission pricing

6.3.2

87

Indian utility 62 bus system

The one line diagram of Indian utility 62 bus system is given in figure 6.1 and
1
G
53

56

50

58

G
5

20

59
49

3
13

G
48

60

54

12

61

52

11

G
51

10

57
55

G
14

62

44

15

19 18
42

43

46

47

28
37

39
41
45

38

G
23

25

16
17
21
22

26
24
34

27

35
40 30

29

33
31

G
36

32
G

Figure 6.1: One line diagram of Indian utility 62 bus system

the line data (Table C.1), bus data (Table C.2) and cost coefficients (Table C.3)
can be found in Appendix C. The proposed algorithm is applied on this test
system with three simultaneous bilateral (Table 6.5) and three multilateral
transactions (Table 6.6). The real and apparent power flows for the base case
and the corresponding wheeling transactions are given in Tables 6.7 and 6.8

Chapter 6. Transmission pricing

88

Table 6.5: Bilateral transactions Indian utility 62 bus system

Transaction
TB1
TB2
TB3

From
19
29
40

To
41
47
59

Magnitude of transaction (MW )

20
30
40

respectively. The wheeling costs are determined for these transactions using
the proposed methods and presented in Table 6.9. From the Table 6.9, it is
observed that the cost due to first multilateral transaction (TM 1 ) is negative
which reduces the system losses and hence favorable to the system.

Table 6.6: Multilateral transactions Indian utility 62 bus system

TransacFrom
tion
6
13
10
TM 1

Magnitude of
transaction (MW )
50
25
25

Total
53
60
42

100
28
52
44

Total
27
36

124
77
73

Total

150

TM 2

TM 3

To
13
15
23
24
12
Total
3
9
10
18
33
62
Total
5
20
54
60
Total

Magnitude of
transaction (MW )
25
25
20
20
10
100
22
18
14
30
12
28
124
20
30
52
48
150

Chapter 6. Transmission pricing

89

Table 6.7: Real power flows for various transactions Indian utility 62
bus system
Line
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55

Bus number
From
To
1
1
1
1
1
1
2
2
3
4
4
4
5
5
6
7
11
11
12
12
12
13
13
14
14
14
14
16
17
20
21
22
23
23
24
24
25
25
25
27
29
30
32
32
32
32
32
33
34
34
34
35
36
37
38

2
4
6
9
10
14
3
6
4
5
14
15
6
8
7
8
10
16
11
13
20
14
17
15
16
18
19
17
21
23
22
23
24
25
41
45
26
27
28
29
30
31
31
34
36
37
46
32
33
35
37
32
46
46
34

Base
case

TB1

TB2

TB3

TM 1

37.0687
51.486
11.3091
14.2323
4.2856
104.2786
369.8616
142.3408
440.01
111.2585
112.5137
78.3005
36.2432
23.8601
103.6944
135.3359
23.2691
21.23
23.1526
6.4277
108.0546
6.4167
67.7754
46.2128
33.3843
21.8538
48.406
48.9258
117.4578
14.83
118.4399
39.2409
69.4892
75.9831
11.9171
119.6669
137.4024
252.8009
51.0803
11.8575
13.4565
84.4692
5.5206
30.9379
4.1854
86.5403
20.9583
15.6077
7.3261
20.49
19.7714
13.4398
24.258
187.6993
43.809

63.9595
98.5449
10.0791
17.207
14.8548
74.6825
350.2154
129.5837
440.01
109.8517
109.697
78.3005
36.2432
23.8601
74.306
136.0477
25.2026
20.1755
25.0586
8.2166
111.7755
8.188
71.5942
49.8833
31.7235
31.6014
49.9756
50.4848
118.7424
14.83
119.7619
37.3869
70.0212
76.3099
12.3328
124.3343
128.694
250.9469
52.1308
12.277
13.6142
84.9196
5.2272
28.0478
0.6704
84.9861
22.3206
18.3934
5.0258
20.3557
5.1116
22.8397
34.2689
172.9184
53.4528

64.4487
99.5515
9.5946
17.9636
24.4393
74.2683
370.2158
127.408
440.01
109.3685
109.1629
73.8488
32.0328
38.4868
73.8939
135.4083
24.4553
20.7957
44.3195
8.8638
103.4367
8.8318
64.1909
42.5694
35.7383
22.9343
45.9514
46.3828
114.3347
14.83
122.3812
27.7368
77.052
83.772
19.5948
124.1685
130.8722
241.2968
35.2881
10.5406
20.5794
91.1723
5.8924
27.2211
0.5506
85.9917
21.3155
19.2177
6.0312
11.0566
1.7877
21.513
32.967
145.9208
52.1067

50.1893
125.8505
8.1779
34.6257
21.8287
71.6715
370.2146
105.4201
440.01
107.9327
107.475
91.8316
76.9296
47.1856
71.3095
140.2801
30.9399
16.0901
30.7258
14.4356
110.3122
14.3747
69.311
47.6416
32.3941
27.6345
49.3023
49.798
118.0034
14.83
118.9089
38.6314
69.6298
76.1132
12.1411
114.9042
152.8526
252.1914
51.6802
12.0865
13.5239
84.646
5.4103
40.1611
12.5345
85.7935
21.5194
6.4445
5.833
13.1267
39.0715
4.883
7.4404
107.4435
25.7024

39.1288
59.3739
5.1035
8.1997
24.8089
74.6312
345.6368
142.408
415.01
104.9011
104.296
65.6285
37.7496
23.7231
74.255
108.3683
14.791
21.4492
14.7391
0.6986
99.6976
0.7666
77.2569
30.4758
22.1961
27.7742
59.5883
60.3144
129.3558
49.83
86.7442
70.7848
69.6409
80.411
16.3257
112.0177
91.6192
284.3448
67.6557
16.2407
30.4525
97.1149
9.7145
33.7399
5.8368
85.4244
21.8839
12.7485
5.464
16.3632
12.7052
13.7814
25.3897
180.6234
44.2739

TM 2
43.636
44.3368
21.7851
56.2834
17.2482
117.0865
401.9628
158.2345
454.01
121.5786
122.9178
33.4198
44.2597
19.3772
116.4228
110.4464
9.4722
25.6582
9.5299
26.1627
99.2729
26.4684
39.2746
27.8296
11.7891
8.3207
39.5207
39.8368
107.2975
14.83
114.0443
39.766
69.4892
75.9831
8.4415
125.1902
31.304
253.326
50.9269
8.4022
19.5169
87.7183
8.2823
4.1873
23.1312
87.2334
20.101
8.9049
7.2729
0.3657
19.7714
13.4398
27.1789
77.471
57.6997
Continued on

TM 3
47.6826
55.0955
24.494
18.4916
19.401
118.8432
370.2068
167.7058
440.01
24.1762
125.3192
24.6169
58.5204
31.0821
108.2472
106.4975
15.7156
49.8932
15.9574
35.313
110.3233
35.8445
54.0419
32.6519
17.5429
11.8745
54.0717
54.6659
123.2379
14.83
110.5124
37.1083
29.5493
94.4214
29.9235
119.0289
9.861
210.6683
44.1642
29.6849
0.0951
100.4335
23.9132
0.7871
27.6114
74.0428
6.742
47.7065
37.9572
35.1009
87.9507
42.6212
53.8372
78.8233
73.6161
next page

Chapter 6. Transmission pricing

90

Table 6.7 continued from previous page

Line
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89

Bus number
From
To
38
39
39
40
40
41
41
42
42
44
46
47
47
48
48
49
49
51
51
51
52
52
55
56
57
57
58
58
58
59
60
60
61
62

37
37
42
30
41
42
45
43
44
59
44
46
48
50
54
48
50
53
54
55
53
61
58
58
56
58
12
60
61
61
12
61
62
25

Base
case

TB1

TB2

TB3

TM 1

TM 2

TM 3

37.5946
31.1649
55.8099
2.8179
17.3184
93.7075
55.8998
19.9881
15.8559
20.073
23.0315
61.2696
15.8959
12.7407
60.693
82.5258
81.057
178.7344
14.5963
10.2816
78.6725
3.9143
12.3641
12.5981
24.3848
24.1729
24.0974
17.1614
22.131
30.1776
34.5276
58.7351
28.4263
63.9372

20.2961
33.5485
52.7354
5.8089
14.38
96.669
57.1263
20.6725
16.3924
20.7546
22.2961
62.9208
16.4313
12.2735
59.6931
81.8914
80.5979
177.8284
13.9306
10.2691
78.3311
3.8306
11.9073
12.1366
24.4927
24.2889
24.1297
17.2536
22.1635
30.1959
34.5505
58.7369
28.4196
63.9125

29.0904
39.917
64.4805
16.0017
4.1899
93.7075
55.8998
19.9881
15.8559
0.832
41.0569
66.838
15.3213
12.2735
59.6931
81.8914
80.5979
177.8284
13.9306
10.2691
78.3311
3.8306
11.9073
12.1366
24.4927
24.2889
24.1297
17.2536
22.1635
30.1959
34.5505
58.7369
28.4196
63.9125

35.0329
33.7116
58.3201
0.8731
19.3946
91.5445
54.7534
19.3269
15.3354
19.402
28.2029
59.8811
15.3694
12.1351
59.5279
81.8413
80.5493
177.8782
13.7814
10.2828
78.4983
3.8724
11.7698
11.9986
24.6047
24.399
24.09
17.6451
22.0855
30.1957
34.5584
58.7629
28.4579
63.8787

36.766
31.9096
56.5309
3.8115
16.403
94.5937
56.1646
20.127
15.9639
20.2062
24.5074
61.6884
16.0008
12.2735
59.6931
81.8914
80.5979
177.8284
13.9306
10.2691
78.3311
3.8306
11.9073
12.1366
24.4927
24.2889
24.1297
17.2536
22.1635
30.1959
34.5505
58.7369
28.4196
63.9125

5.7437
37.0518
101.3263
52.8937
31.217
146.3459
81.2924
34.6144
27.1435
34.8073
81.9977
92.3613
27.2836
20.5015
14.2818
59.5358
58.8348
169.6078
22.8742
15.0155
72.5033
20.9944
21.2487
20.9326
47.2258
46.4917
54.5673
17.1614
22.131
30.1776
34.5276
35.5019
20.4776
43.6954

7.9861
62.2899
86.6833
46.5545
25.2796
139.544
77.9949
32.7218
25.6534
32.8938
89.328
88.1642
25.78
21.7966
17.8361
67.6687
66.7549
192.2228
14.5963
10.2816
78.6725
3.9143
12.3641
12.5981
24.3848
24.1729
24.0974
17.1614
22.131
30.1776
34.5276
30.4737
32.4573
59.873

Table 6.8: Apparent power flows for various transactions Indian utility
62 bus system
Line
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Bus number
From
To
1
1
1
1
1
1
2
2
3
4
4
4
5
5
6

2
4
6
9
10
14
3
6
4
5
14
15
6
8
7

Base
case

TB1

TB2

TB3

TM 1

68.87
123.5395
77.3747
88.8376
41.5067
124.0184
128.6
37.8082
122.5043
114.9003
112.6255
405.1178
166.4658
145.6251
440.6539

85.6188
147.6499
94.2682
95.2839
52.0595
124.6599
127.8067
40.7656
121.4739
96.706
94.4795
405.1168
168.4141
143.4579
440.6535

86.0371
148.4347
94.6917
95.6059
52.268
124.3198
127.4373
40.6072
121.0437
96.4419
94.2153
405.0046
167.198
144.9945
440.6064

99.7378
169.3182
108.5881
103.4936
60.5804
129.46
126.5188
38.8655
119.5162
94.8139
92.5861
405.3271
150.2358
165.8759
440.7423

65.3567
119.4072
73.8511
88.4068
39.0156
117.6153
123.0749
41.4156
116.5227
96.6732
94.4467
385.8153
179.1542
114.0329
416.5391

TM 2
48.138
107.2808
54.9455
108.2538
23.6566
116.9524
135.7187
39.2968
131.8186
127.359
125.0079
431.8156
267.8344
76.5102
454.4854
Continued on

TM 3
61.2791
117.2996
67.1961
127.8365
33.7831
147.417
139.3455
73.6663
134.1176
119.6106
118.6225
407.2039
287.1872
72.6001
441.5644
next page

Chapter 6. Transmission pricing

91

Table 6.8 continued from previous page

Line
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72

Bus number
From
To
7
11
11
12
12
12
13
13
14
14
14
14
16
17
20
21
22
23
23
24
24
25
25
25
27
29
30
32
32
32
32
32
33
34
34
34
35
36
37
38
38
39
39
40
40
41
41
42
42
44
46
47
47
48
48
49
49

8
10
16
11
13
20
14
17
15
16
18
19
17
21
23
22
23
24
25
41
45
26
27
28
29
30
31
31
34
36
37
46
32
33
35
37
32
46
46
34
37
37
42
30
41
42
45
43
44
59
44
46
48
50
54
48
50

Base
case

TB1

TB2

TB3

TM 1

101.1826
136.4167
25.7971
12.1243
22.5041
25.4979
112.9708
25.3818
32.7036
18.9099
76.1625
51.6789
46.3679
33.0583
5.5402
48.6748
49.1566
113.8147
15.0509
131.2286
19.7004
78.0371
52.1905
253.5376
76.2731
8.2308
17.0367
18.1052
157.4425
204.4108
88.2731
14.21
21.1805
107.9346
19.4961
87.3964
35.9248
27.2121
35.6549
113.4532
54.4745
37.505
31.4457
55.4403
27.1575
14.2996
93.011
56.4767
60.4324
20.6154
17.9678
23.1944
16.0406
24.4342
69.8652
23.67
22.6105

104.1256
137.1692
26.9821
12.8234
21.9505
26.6878
115.2772
32.672
28.7511
19.48
80.1371
51.8453
50.7892
32.1235
3.9865
49.6869
50.1282
114.8156
15.0902
132.0261
19.5679
78.2788
51.2395
252.2255
76.3667
8.0676
17.1188
18.1856
162.5375
195.4683
88.3273
18.2604
21.2062
105.6136
17.5291
86.9491
35.8311
30.6467
40.2204
114.1232
60.6537
21.5778
33.0221
51.7856
25.5724
14.3547
94.9609
57.3751
61.5121
21.0955
18.2708
23.5915
16.4788
24.4342
69.8652
23.67
22.6105

104.5279
136.5494
26.2223
13.491
22.405
25.9249
108.8135
25.3711
27.9966
20.0624
74.8931
34.9614
43.981
35.9292
3.9325
45.6347
46.2462
110.8035
14.9543
133.7934
24.1177
84.3169
44.6177
242.4649
83.8081
8.6604
23.1272
17.541
162.7514
189.459
94.7195
19.0688
21.1529
106.6157
8.1586
87.9718
35.386
30.0082
39.4704
115.5303
59.7071
30.7507
39.2025
63.0383
40.7833
18.5967
105.0288
64.0593
65.0344
29.3425
17.499
12.0486
15.3464
24.4342
69.8652
23.67
22.6105

111.9125
141.2829
32.8093
18.1091
19.2134
32.5333
113.6155
29.2089
40.2863
23.7389
77.7
51.317
48.6814
32.7508
12.5347
49.0064
49.4749
114.1427
15.0634
131.3517
19.5666
77.9486
52.1635
253.6276
76.1691
8.2292
16.9457
18.0161
154.0897
226.9499
88.0474
7.7992
21.1592
111.63
22.4345
87.9577
36.1447
29.4256
32.7486
115.0625
45.6508
35.9268
33.1791
57.1447
29.9833
14.7503
90.1401
55.1566
58.8474
19.9153
17.5317
22.6223
15.3955
24.406
69.7451
23.6106
22.5773

91.8364
109.5421
16.3959
7.4307
22.0071
16.0356
104.7324
29.3279
34.0837
15.164
83.9886
67.345
33.3726
23.7243
6.163
59.4581
59.5966
124.5012
50.1044
109.144
32.0177
77.9581
79.2128
285.895
80.488
12.2745
20.8256
21.8315
153.0156
202.0539
100.7869
12.8779
21.1764
107.2917
19.5023
87.4421
35.8045
27.2468
35.6842
112.7886
54.5008
37.502
31.4489
55.4434
27.1626
14.2999
93.0049
56.4739
60.429
20.6139
17.9669
23.1932
16.0392
24.4342
69.8652
23.67
22.6105

TM 2
62.3093
114.5096
7.0049
23.9022
42.4497
6.9825
111.4259
33.094
19.3022
26.4087
53.032
55.5561
33.8992
11.8784
31.5569
41.4001
41.2294
105.6589
14.9496
125.8472
22.8732
78.0754
56.4154
258.9891
77.115
8.9473
17.7788
18.8322
153.6796
144.0663
90.7241
35.184
20.7661
127.2995
28.4623
90.1044
36.9085
59.9895
69.3812
158.0027
93.3286
25.3801
78.412
101.1826
73.2024
48.425
138.9107
78.7507
86.6183
32.7703
26.2789
34.0092
26.5698
36.9801
48.6499
34.5803
34.9204
Continued on

TM 3
46.7966
110.779
18.6336
35.5034
48.7257
19.0694
124.7116
32.4615
8.3305
35.4507
58.8658
82.8803
35.1953
18.7354
29.9379
53.9092
54.1081
118.883
15.224
125.4132
17.4927
55.5836
84.967
292.6459
94.5657
24.0431
34.1605
35.1106
166.0583
117.2304
104.1719
46.8484
51.3398
99.9902
26.2055
115.7942
31.4349
44.6676
54.5319
149.9921
76.9145
19.388
61.2877
84.5327
86.5402
45.4522
135.7196
78.639
83.7971
34.2208
25.6869
32.9373
29.0876
34.3738
42.9591
32.6218
32.6389
next page

Chapter 6. Transmission pricing

92

Table 6.8 continued from previous page

Bus number
From
To

Line
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89

51
51
51
52
52
55
56
57
57
58
58
58
59
60
60
61
62

53
54
55
53
61
58
58
56
58
12
60
61
61
12
61
62
25

Base
case

TB1

TB2

TB3

TM 1

TM 2

TM 3

83.9484
25.5671
81.3774
170.0644
11.7966
85.0198
26.2757
13.4596
24.0051
24.6314
26.1288
19.7884
43.6603
48.4582
74.2915
31.0296
73.0682

83.9484
25.5671
81.3774
170.0644
11.7966
85.0198
26.2757
13.4596
24.0051
24.6314
26.1288
19.7884
43.6603
48.4582
74.2915
31.0296
73.0682

83.9484
25.5671
81.3774
170.0644
11.7966
85.0198
26.2757
13.4596
24.0051
24.6314
26.1288
19.7884
43.6603
48.4582
74.2915
31.0296
73.0682

83.9012
25.6864
81.3309
170.1092
11.8102
85.1922
24.4923
13.4586
22.25
24.6108
26.2482
18.2229
38.6623
43.4279
70.5502
31.7211
73.0419

83.9484
25.5671
81.3774
170.0644
11.7966
85.0198
26.2757
13.4596
24.0051
24.6314
26.1288
19.7884
43.6603
48.4582
74.2915
31.0296
73.0682

63.5539
48.0627
61.4758
161.2432
15.9376
78.8989
54.0098
27.2094
52.0322
36.3673
48.4737
44.6243
73.8932
76.114
59.7834
25.1349
59.2867

69.9887
52.7839
67.7756
183.0601
13.4666
62.6685
49.3682
26.0481
47.9294
34.1705
53.5805
41.107
69.1514
70.8627
53.0085
35.1683
69.9797

Table 6.9: Wheeling charges Indian utility 62 bus system

Transactions
TB1
TB2
TB3
TM 1
TM 2
TM 3

6.4

MW-cost method (|/hr)

63672.67
46753.55
125737.20
-148233.11
150587
166508.42

MVA-cost method (|/hr)

22519.52
18291.60
60078.52
-25045.10
147789.33
260565.60

Conclusions

This chapter presents two new embedded cost methods for the computation of
wheeling charges. These methods are applied on IEEE 30 bus and Indian utility
62 bus systems. Simultaneous bilateral and multilateral wheeling transactions
are carried out in the test systems to compute the wheeling charges. The
obtained results of the proposed embedded methods are compared with other
embedded cost methods such as postage stamp method and contract path
method to prove their effectiveness. The proposed methods consider the actual
system operating condition and hence, are more efficient.