Title :
A theoretical framework for cost allocations in a monopoly system with application to the allocation of transmission losses
Author :
Liu, Haoming ; Junji Wu ; Zou, Yun ; Wen, Fushuan ; Ni, Yixin ; Wu, Junji
Author_Institution :
Sci. of Power Eng., Nanjing Univ. of Sci. & Technol., China
Abstract :
In this paper, fundamental characteristics of a general monopolistic service system with a simple structure are first investigated, and a theoretical framework for allocations of common costs is then developed. The concepts of "fairness" and "rationality" are characterized mathematically for the general cost allocation problem. Under the proposed framework, several available allocation methods of transmission losses could be well unified.
Keywords :
costing; losses; monopoly; power markets; power transmission; service industries; active power losses; cost allocations; fairness; monopolistic service system; rationality; transmission losses; Cost function; Electricity supply industry; Environmental economics; Monopoly; Power generation economics; Power industry; Power supplies; Power system economics; Pricing; Propagation losses;
Conference_Titel :
Power Engineering Society General Meeting, 2003, IEEE
Print_ISBN :
0-7803-7989-6
DOI :
10.1109/PES.2003.1270419