Research on Transmission Cost Allocation Decomposition Modeland Transmission Price Formation Mechanism

In this paper, reasonable cost-sharing steps and the corresponding counting model of various types of transmission services were elaborated.On this basis, the transmission price formation mechanism was discussed. In deciding the principles of transmission cost allocation, the thinking of large scale system theory with voltage level decomposition was applied so that cost allocation model reflects the usage of grid according to different voltage levels and access points. The methods and models may provide a pricing mechanism of fair competition environment to the following power market reform in China which tends to separate the transmission and the distribution.