Certain considerations in the pricing of transmission service

A utility B intervening between utilities A and C, such that λ_a<λ_b<λ_c might implicitly choose to price the transmission service for wheeling power from A to C according to three concepts, called attitudes. These attitudes (franchise, entitlement, and simultaneous purchase and set) are defined, and a nondimensional normalized method of evaluating the economic benefits accruing from their use are discussed in detail. The pricing of transmission service over the short term, typically for the hourly or weekly exchanges of economy energy and interruptible energy is discussed. The opportunity for the intermediate utility in the market are examined