Time-of-day electricity pricing concerning generation system reliability cost

In this paper a time-of-day pricing method for consumers is presented. The main contribution of this method is that the reliability cost of a generation system is involved in time-of-day tariffs for consumers and shared by all consumers according to their consuming time patterns. This method is divided into the following four parts. At first a stochastic optimal mix of generation units is exploited. Secondly, the system marginal costs are evaluated. Then the whole costs and benefits are assigned to each unit and each time interval by several rules. Finally, the reliability time-of-day tariffs for consumers is obtained. A corresponding algorithm and computer software have been developed