Transmission pricing considering cost composition and its allocation
Jiangang Yao
Abstract
Jiangang Yao
Abstract
The proposed transmission pricing method divides transmission cost into fixed cost,variable cost and additional cost.The fixed cost is amended according to different transaction types for charging.The variable cost is allocated using marginal loss coefficient method.The additional cost is calculated using marginal cost method,in which the user's payment depends on whether the marginal change exceeds the maximum capacity.Cost allocation formulas are given,which avoids the cross-allowance,reflects the transmission pricing rules,leads to more rational charging in transmission service and ensures the cost return and certain profit of power grid company.
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The proposed transmission pricing method divides transmission cost into fixed cost,variable cost and additional cost.The fixed cost is amended according to different transaction types for charging.The variable cost is allocated using marginal loss coefficient method.The additional cost is calculated using marginal cost method,in which the user's payment depends on whether the marginal change exceeds the maximum capacity.Cost allocation formulas are given,which avoids the cross-allowance,reflects the transmission pricing rules,leads to more rational charging in transmission service and ensures the cost return and certain profit of power grid company.
Key concepts: Marginal cost, Variable cost, Cost allocation, Total absorption costing, Fixed cost, Allowance (engineering), Total cost, Grid