The economic dispatch with consideration of transmission service charge for a generation company

This paper presents a novel economic dispatch strategy for a generation company which owns several units with different fuel costs, efficiency, and locations, and has a bilateral contract with several large customers. The proposed strategy not only considers the generation cost, but also takes into account the wheeling charge for the use of the transmission system. A modified megawatt-mile method is proposed to calculate the wheeling cost in this paper. Finally, the calculation results of economic dispatch for a generation company with two units and their loads in a real power system is demonstrated