Congestion Pricing: Is a Load Flow-Based Pricing Approach Appropriate?

The move toward open markets and unbundling of transmission services has resulted in the need to assess the impact of a particular generator or load on the power system. The Line Flow Splitting method proposed here—which splits a given load flow into individual consumer load flows and allocates the ensuing congestion costs by extent of use—may serve as a load-flow-based cost allocation concept for congestion management.