Probabilistic costing of transmission services

The adoption of appropriate pricing strategies for the costing of bulk power transmission services is important in the economic operation and development of multi-utility power systems. In particular, both the restructured UK power supply system and inter-utility power wheeling in other systems, requires the application of use-of-system costing in order to promote the economic operation and optimal development of the power system. The authors describe a methodology that has been developed for the costing of the use of bulk transmission services. The approach adopted employs marginal cost pricing for the use-of-system and takes into account the probabilistic nature of the power system arising from uncertainties in generator availabilities