Transmission cost allocation for mixed pool and bilateral markets

This paper proposes a new method for allocating transmission cost in mixed pool and bilateral markets. The proposed method applies the power flow base MVA-mile method, which is accepted as one of the most suitable methods for transmission cost allocation. The proposed transmission cost allocation is divided into 2 parts, real and reactive power. In addition, the transmission usage measure is proposed for calculating the extent of use of transmission in the system. Thus, the allocation result can be considered as a more reasonable method for all participants. The proposed method has been tested with the IEEE-RTS79 test system. Satisfactory results were obtained.