Distribution use-of-system pricing to facilitate retail competition and demand management

The standardization of distribution use-of-system arrangement is expected to facilitate the development of controllable loads and enhance retail competition through differentiated distribution pricing. The IEEE 123-node distribution test feeder is simulated and optimized with cost data to demonstrate the network peak pricing approach based on long run average incremental cost. Peak price rebates are calculated for controllable loads according to deferred investment costs, which can be packaged as retailer price discount to promote retail competition.