Comparative assessment of MW-mile and MVA-mile methods of transmission tariff allocation and revenue reconciliation

This paper assesses the transmission tariff allocation and revenue reconciliation, using MW-mile and MVA-mile methods and compares them exhaustively. Since load consumers are major beneficiaries of the transmission network therefore, the transmission tariff allocations as well as the revenue reconciliation are being evaluated keeping them in consideration. The impact of power flow through a line due to MW or MVA withdrawal at a load bus has been derived using power flow analysis. The optimal parameters of power flow are determined for both actual and base loading of any circuit. The work presents methodical evaluation of transmission tariff allocation, has been performed with the three variants namely absolute, dominant and reverse. Multiple cases of the circuit utilization are simulated to the support findings more general. The tariff allocation to load buses reduces with increase in the line utilization for any variants used. Therefore, for economical tariff allocation and better revenue reconciliation, it has been recommended that, the average utilization of the network should maximum, for any variant used.