OPF incorporating load models maximizing net revenue

Previous studies have shown that the incorporation of load models in optimal power flow (OPF) solutions using a minimum cost objective reduces fuel cost by lowering the power demand of the modeled loads. It is shown that the reason for the decrease is due to misuse of the objective. An objective that avoids the tendency to lower the total power demand, total revenue and net revenue for OPF neglecting contingencies (normal OPF) as well as for security-constrained OPF is proposed. The minimum cost objective is modified by subtracting the total power demand from the total fuel cost. This is equivalent to maximizing the net revenue