CHAPTER

SIX

TRANSMISSION PRICING

6.1 Introduction

n the restructured electricity market, transmission company plays a vital

I role due to its involvement in the determination of charges for wheeling
transactions. In the traditional regulated power market, wheeling transactions
have accounted for a small portion of the overall transmission network capacity
usage. However, recent trends of unbundling have stimulated renewed inter-
est in pricing of transmission services, particularly as it relates to wheeling
transaction [85]. Wheeling transaction is defined as the “use of transmission
or distribution facilities of a system to transmit power of and for another
entity or entities”. It may also be defined as, “Wheeling is the use of some
party’s transmission system(s) for the benefit of the other parties” [125, 140].
Wheeling refers to “transmission of real and reactive power from seller to
buyer involving transmission network of a third party”. Wheeling cost is due
to redispatching of generators and transmission losses. Transmission pricing is
carried out:
1. to recover the capital and operating costs

76
Chapter 6. Transmission pricing 77

2. to encourage efficient use and investment

3. to provide equal opportunity to all users
4. to offer a simple and understandable price structure
5. for easy implementation.

Before determining the cost of wheeling, it is necessary to find the feasibility

of a proposed firm transaction. As transmission pricing involves the wheeling
cost, the knowledge of ATC is very important for the utilities which help
them to reserve their transmission services. A detailed account of ATC and
its estimation has been given in chapter 5.

Many methods have been proposed in the literature [83, 84, 87, 141] to
evaluate the costs of transmission transactions or wheeling transactions. These
methods are broadly classified as incremental or marginal cost method and
embedded cost method. Marginal cost methods involve short run marginal
cost (SRMC) and long run marginal cost (LRMC).

SRMC pricing of transmission service is highly volatile, fails to recover

the total incurred network costs and provide perverse economic signals to
the transmission company [142]. On the other hand LRMC pricing is a
formidable task and involves more assumptions about the costs and scenarios
of expansion [141]. Therefore, embedded cost methods have been widely used
all over the world. These methods offer several benefits such as being practical
& fair to all parties and provide an adequate remuneration for transmission
systems. However, they neither reflect the degree to which these facilities
are over utilized nor provide efficient means to allocate resources to relieve
constrained transmission capacity. The embedded cost methods are classified
as postage stamp method, contract path method, distance MW -Mile method
and power flow based MW -Mile method.

Postage stamp method [83] assumes that the entire transmission system is
used in the wheeling transaction irrespective of the actual transmission facilities
Chapter 6. Transmission pricing 78

which carry out the transaction i.e., the cost of wheeling is determined based
on the amount of transacted power independent of the distance or location.
This method is simple and straightforward but ignores actual system operation
thus masking the actual cost incurred by a transaction.

Contract path method [89] selects a specific continuous path between the
seller and buyer for wheeling transaction. All changes in the power flows
through the transmission facilities which are not along the contract path are
ignored. The path chosen must have “sufficient unused capacity” to carry the
amount of power to be transported. The selection of the contract is, however,
not usually based on the power flow study to identify the facilities actually
involved in the transaction. This method is simple and provides a distinct
way of settling financial liabilities to influenced parties along the contract
path. However, majority of the transacted power may actually flow through
transmission lines outside the contracted path and hence the actual operating
environment may be ignored. It overlooks the possibility of outages occurring
in the contract path, which would impose additional flows on neighboring
systems which are not parties of the contract path.

Distance based MW -mile method [141] allocates the transmission charges

based on the magnitude of transacted power and the geographical distance
between the points of delivery and receipt, i.e., the product of power due to
a specific transaction times the distance this power travels in the network.
This method promotes the maximum use of the existing system and provides
incentives to participants to stay in the integrated pool. It suffers with lack
of evident relationship between the geographical distance and the actual
transmission facilities involved in a transaction.

Flow based MW -mile method [88] allocates the charges of each transmission
facility to a wheeling transaction based on the extent of use of that facility
by the transaction. These allocated charges are then added up over all
Chapter 6. Transmission pricing 79

transmission facilities to evaluate the total price for using the transmission
system. The charges are determined as a function of magnitude, the path, and
the distance traveled by the transacted power. Two power flows are executed
successively, with and without wheeling, to get the changes in MW flows in
all transmission lines. This method emulates the actual system operating
conditions, insensitive to the order of wheeling transactions as each transaction
is treated separately, provides better cost signals for long and short distance
wheeling customers and encourages the economic use of the transmission
network capacity by giving a higher cost signal to transactions with several
delivery points.
In the flow based MW -mile method, the changes in power flow in each
facility, due to a transaction are multiplied by the length of each facility. This
implies that the transmission of same power over a transmission line with
long length will have more weightage over short length. But the transmission
lines may have different type of conductor with different thermal rating &
cost, leading to different weightages for the same length. This drawback can
be avoided by replacing the length of the line with the cost of the conductor.
Hence instead of multiplying the changes of power flow with length of the
line, the changes in power flow should be multiplied by its cost (i.e., average
revenue requirement per hour of the facility). With this idea, two methods
called MW -cost method and MVA-cost method have been proposed in this
chapter and applied on IEEE 30 bus system and Indian utility 62 bus system.

6.2 Problem Formulation

Before computing the transmission pricing, it is necessary to determine the

possibility of feasible wheeling transactions. The necessary solution of OPF
is obtained as discussed in chapter 3. A detailed account of bilateral and
Chapter 6. Transmission pricing 80

multilateral transactions can also be found in chapter 3. The magnitude of

feasible wheeling transaction is determined by computing the available transfer
capability of the systems. The results of ATC for the test systems can be found
in chapter 5. Then by using the proposed embedded cost methods, the wheeling
cost per hour is computed for the feasible simultaneous bilateral/multilateral
transactions.

6.2.1 Postage stamp method

The postage stamp rate of transmission service may be calculated by summing

up all transmission costs and dividing by system peak demand to get a flat
amount per MW. The customer transmission charge is given by the magnitude
of transacted power involved in the customer transaction multiplied with
postage stamp rate as given by

Pt
W Ct = T C × (6.1)
Ppeak
where
W Ct – transmission or wheeling charge for transaction ($/hr)
T C – total transmission charges ($/hr)
Pt – magnitude of transacted power (MW )
Ppeak – system peak demand (MW ).

6.2.2 Contract path method

In the contract path method, transmission service provider and the customer
agree on a fictitious path (contract path) for the transmission service. The
contract path interconnects the points of injection and receipt, although it
is defined “virtually” without power flow studies. Once the contract path
has been determined, all or a part of the transmission cost related to the
Chapter 6. Transmission pricing 81

specified path is assigned to the transaction and wheeling charges are calculated
according to the equation:

X Pt
W Ct = T Ck × (6.2)
k
Ppeak

where
W Ct – transmission or wheeling charge for transaction ($/hr)
T Ck – transmission charge of the contract path k ($/hr)
Pt – magnitude of transacted power (MW )
Ppeak – system peak demand (MW ).

6.2.3 Proposed embedded cost methods

The postage stamp and contract path methods are not considering the ac-
tual system operating condition for the estimation of transmission charges.
Hence the transmission charges determined using these methods provide an
incorrect economic signal to the transmission customers. Also in the power
flow based MW /MVA-mile methods, the charges for each transmission facility
to transmission transaction is allocated based on the extent of use of that
facility by these transactions. But in actual practice, the transmission lines of
same length may have different capacity & costs. Hence they have different
weightage for cost allocation. Moreover, modern power systems are facilitated
with FACTS devices to control the power flow in the system. In such cases,
the cost of these equipments cannot be so easily replaced by their equivalent
length. Most of the time, this involves some approximations which sacrifice
the accuracy of flow based mile methods. Hence it is proposed that instead of
multiplying the changes in the flow by length, it should be multiplied by its
cost i.e., the average revenue requirement per hour of the facility. This power
flow based embedded cost method may be called flow cost method with two
Chapter 6. Transmission pricing 82

sub categories:
1. MW -cost method
2. MVA-cost method.

6.2.3.1 MW -Cost Method

In this method, two power flows are executed successively, with and without
the wheeling transaction T and the changes in MW flows in all transmission
line facilities are noted. The transaction cost in $/hr or |/hr for a transaction
T is given by the equation
P
C× (∆M Wf )T × Cf
f
W Ct = P P (6.3)
8760 × ( (∆M Wf )T × Cf
T f

where
W Ct – transmission or wheeling charge for transaction ($/hr or |/hr)
C – total transmission annual revenue requirement ($/yr or |/yr)
(4M Wf )T – change in real flow in facility f due to transaction T (MW )
4M Wf – real flow in facility f (MW )
Cf – Average revenue requirement per hour of the facility f ($/hr or |/hr).

6.2.3.2 MVA-Cost method

It has been recognized that the use of transmission resources is best measured
by monitoring both real and reactive power. The proposed MVA-cost method
can consider both active and reactive power loading of the transmission network
during a transaction and allocate embedded cost of transmission accordingly.
In this method, two power flows are executed successively, with and without
the transaction T , & the changes in MVA flows in all transmission line facilities
are noted. The transaction cost W Ct in $/hr or |/hr for a transaction T is
given by the equation
Chapter 6. Transmission pricing 83

P
C× (∆M V Af )T × Cf
f
W Ct = P P (6.4)
8760 × ( (∆M V Af )T × Cf
T f

where
(4M V Af )T – change in MVA flow in facility f due to transaction T (MW )
4M V Af – MVA flow in facility f (MW ).
In this method, a transaction causing more reactive power loading will be
charged more than other transactions. This method is the most fair and
realistic among all the above methods including MW -cost method.

6.3 Simulation Results

The study has been carried out on IEEE 30 bus and Indian utility 62 bus
systems. For the present study, reactive power demand at load buses is
considered to be constant. The optimum generation for the minimum cost of
generating units were obtained initially using OPF based differential evolution
algorithm with transmission flow constraints as explained in chapter 3. The
simulation parameters of DE can be found in Table 3.1.

6.3.1 IEEE 30 bus system

The proposed algorithm is implemented on IEEE 30 bus system (Figure 3.3).

The line data (Table B.1), bus data (Table B.2) and cost coefficients (Table B.3)
for this system can be found in Appendix B. Four simultaneous bilateral
wheeling transactions are carried as in Table 6.1. The real and apparent
power flows for the base case and the corresponding wheeling transactions are
given in Tables 6.2 and 6.3 respectively. Cost allocation to these wheeling
transactions are determined in $/hr by the proposed flow cost methods and
are compared with postage stamp method and contract path method as given
Chapter 6. Transmission pricing 84

in Table 6.4. The cost allocation to transaction TB4 is found to be negative

which reduces the system losses and thus favouring the system.

Table 6.1: Bilateral transactions – IEEE 30 bus system

Transaction From To Magnitude of transaction (MW )

TB1 22 4 10
TB2 20 3 15
TB3 30 10 20
TB4 13 8 30

Table 6.2: Real power flows for various transactions – IEEE 30 bus system

Line Bus number Base

number From To case TB1 TB2 TB3 TB4
1 1 2 12.6567 28.9057 19.0303 23.0665 19.0848
2 1 3 13.3615 21.5237 16.3551 18.5482 0.3967
3 2 4 13.1954 18.4479 14.9589 16.4968 5.8833
4 2 5 21.4843 26.4122 23.5082 24.6719 19.6627
5 2 6 17.2115 23.1311 19.753 21.0502 5.6392
6 3 4 10.8593 18.8802 13.8099 15.9642 2.8025
7 4 6 17.4153 20.4624 20.9644 19.8587 5.0271
8 12 4 1.1076 8.9917 0.0213 4.7812 2.5547
9 5 7 21.2411 26.0559 23.223 24.3586 20.5961
10 6 7 1.8155 2.8955 0.1332 1.2407 0.3214
11 6 8 21.6327 22.1692 23.3593 21.9967 12.192
12 6 9 5.835 13.2135 6.2746 10.8741 6.3826
13 6 10 3.3343 7.5505 3.5855 6.2138 3.6472
14 6 28 1.7302 3.1016 7.2742 2.6744 4.0314
15 28 8 8.5476 8.0096 6.8105 8.1824 2.2389
16 11 9 0 0 0 0 0
17 9 10 5.835 13.2135 6.2746 10.8741 6.3826
18 10 20 5.8177 16.479 5.9555 14.233 6.1111
19 10 17 1.4308 3.1656 1.3574 0.4743 2.1356
20 10 21 8.6121 8.4354 9.434 8.507 20.4206
21 22 10 12.6913 13.3445 11.2713 13.1482 15.615
22 13 12 37 37 37 37 37
23 12 14 4.9741 5.7953 5.1859 6.0362 4.8397
24 12 15 8.5774 11.5888 9.42 12.4324 7.9793
Continued on next page
Chapter 6. Transmission pricing 85

Table 6.2 – continued from previous page

Line Bus number Base
number From To case TB1 TB2 TB3 TB4
25 12 16 11.1409 17.4076 11.2154 12.1126 15.4263
26 15 14 1.2626 0.4499 1.0526 0.2122 1.3961
27 15 18 9.259 14.0062 9.1188 14.7769 8.9607
28 23 15 10.3417 11.3448 9.1437 11.0408 10.7683
29 16 17 7.6271 5.8748 7.7015 8.5964 6.9142
30 18 19 5.9566 10.5741 5.8192 7.7196 5.665
31 20 19 3.5734 1.0001 3.71 1.8239 3.8634
32 22 21 8.9345 9.1127 8.116 9.0408 9.1233
33 24 22 0.0828 0.9235 2.2027 0.6521 0.1967
34 23 24 5.6583 4.6552 6.8563 4.9592 5.2317
35 25 24 3.1926 5.0622 0.2617 4.4764 3.7368
36 25 26 3.5464 3.5464 3.5464 3.5464 3.5464
37 27 25 6.7913 8.6918 3.3079 8.0952 7.3435
38 27 29 6.2497 6.2497 10.6829 6.2497 6.2497
39 27 30 7.0465 7.0465 13.334 7.0465 7.0465
40 27 28 6.8225 4.922 0.4148 5.5186 6.2703
41 29 30 3.7577 3.7577 8.021 3.7577 3.7577

Table 6.3: Apparent power flows for various transactions – IEEE 30 bus
system

Line Bus number Base

number From To case TB1 TB2 TB3 TB4
1 1 2 14.5077 15.2609 17.5149 16.3619 28.8614
2 1 3 13.6872 13.4374 11.9456 14.2696 8.5149
3 2 4 14.0039 13.4533 14.1019 14.1189 4.7432
4 2 5 22.0652 22.5156 23.2823 22.5133 12.6234
5 2 6 18.7261 19.3197 20.2171 19.3774 7.7272
6 3 4 12.1143 11.8538 24.6849 12.5528 12.0169
7 4 6 21.7283 26.5599 27.6327 23.9348 14.07
8 12 4 1.4926 2.522 5.2786 3.5988 21.5002
9 5 7 21.8061 22.2466 22.9949 22.2452 12.5447
10 6 7 5.0088 5.2082 5.0397 5.5359 14.1358
11 6 8 20.0476 31.1252 31.1222 34.0713 20.3397
12 6 9 5.7104 9.5135 11.1274 0.9799 1.9095
13 6 10 3.2631 5.4363 6.3585 0.5599 1.0911
Continued on next page
Chapter 6. Transmission pricing 86

Table 6.3 – continued from previous page

Line Bus number Base
number From To case TB1 TB2 TB3 TB4
14 6 28 4.3921 4.1982 4.3474 13.4005 5.5641
15 28 8 10.6007 11.9592 11.9653 9.2943 10.5292
16 11 9 0 0 0 0 0
17 9 10 5.7151 9.5285 11.1339 0.982 1.9016
18 10 20 6.8312 6.6991 16.829 8.2225 5.8304
19 10 17 5.1596 5.4467 5.0134 6.218 7.3066
20 10 21 8.5497 11.3916 8.466 10.9182 8.1344
21 22 10 16.5628 14.4974 17.2799 13.9452 16.2647
22 13 12 38.7798 38.5535 38.7203 38.7153 38.046
23 12 14 5.0572 5.4336 6.0783 5.1238 6.0857
24 12 15 8.5127 10.1555 12.4422 8.9155 12.6522
25 12 16 11.5068 12.8719 12.876 8.9559 16.8443
26 15 14 1.4295 1.2231 1.0018 1.4027 1.1201
27 15 18 9.4373 10.0727 14.6772 8.0754 11.8445
28 23 15 11.8016 10.8854 12.5059 10.5948 9.8367
29 16 17 7.6713 9.1157 9.0617 5.0308 13.1668
30 18 19 6.0034 6.3562 10.8145 4.3498 8.1506
31 20 19 4.5129 4.4488 3.285 5.787 4.0221
32 22 21 14.8298 13.3307 15.2142 13.1505 14.7054
33 24 22 6.688 8.3217 7.0876 7.1007 7.1776
34 23 24 5.7873 6.9425 5.5005 7.5665 8.1788
35 25 24 3.8354 4.8455 4.8889 6.2306 1.853
36 25 26 4.2657 4.2657 4.2657 4.2659 4.2657
37 27 25 7.1546 7.9904 8.0386 6.0744 5.6368
38 27 29 6.4669 6.4669 6.4669 15.6634 6.4669
39 27 30 7.2459 7.2459 7.2459 20.296 7.2459
40 27 28 8.6432 8.6419 8.7931 10.2755 9.0282
41 29 30 3.8045 3.8045 3.8045 12.4653 3.8045

Table 6.4: Wheeling charges ($/hr) – IEEE 30 bus system

Transac- Postage stamp Contract path MW-cost MVA-cost

tion method method method method
TB1 336.82 315.775 450.401 470.166
TB2 505.241 473.613 560.53 535.425
TB3 376.656 631.917 1075.44 1135.29
TB4 1010.48 947.3278 -1025.48 -1192.3
Chapter 6. Transmission pricing 87

6.3.2 Indian utility 62 bus system

The one line diagram of Indian utility 62 bus system is given in figure 6.1 and

G G
1 9
57 10
G 11 G
55 G
53 2
56 12
G 58 3 6
51 61 7
52 4
13 G
G 60 5
50 G
54 20 8
G G
59 14
62
15
49 48 44
G 19 18

42 43 G 16
47 46 17
G
28 23 21
G
37 39
41 25 22
G
38 45

26
24
34 35 27
40 30 29
G
33
31
G
32
36
G

Figure 6.1: One line diagram of Indian utility 62 bus system

the line data (Table C.1), bus data (Table C.2) and cost coefficients (Table C.3)
can be found in Appendix C. The proposed algorithm is applied on this test
system with three simultaneous bilateral (Table 6.5) and three multilateral
transactions (Table 6.6). The real and apparent power flows for the base case
and the corresponding wheeling transactions are given in Tables 6.7 and 6.8
Chapter 6. Transmission pricing 88

Table 6.5: Bilateral transactions – Indian utility 62 bus system

Transaction From To Magnitude of transaction (MW )

TB1 19 41 20
TB2 29 47 30
TB3 40 59 40

respectively. The wheeling costs are determined for these transactions using
the proposed methods and presented in Table 6.9. From the Table 6.9, it is
observed that the cost due to first multilateral transaction (TM 1 ) is negative
which reduces the system losses and hence favorable to the system.

Table 6.6: Multilateral transactions – Indian utility 62 bus system

Transac- Magnitude of Magnitude of

From To
tion transaction (MW ) transaction (MW )
6 50 13 25
13 25 15 25
10 25 23 20
TM 1
24 20
12 10
Total 100 Total 100
53 28 3 22
60 52 9 18
42 44 10 14
TM 2 18 30
33 12
62 28
Total 124 Total 124
27 77 5 20
36 73 20 30
TM 3 54 52
60 48
Total 150 Total 150
Chapter 6. Transmission pricing 89

Table 6.7: Real power flows for various transactions – Indian utility 62
bus system
Bus number Base
Line From To case TB1 TB2 TB3 TM 1 TM 2 TM 3
1 1 2 37.0687 63.9595 64.4487 50.1893 39.1288 43.636 47.6826
2 1 4 51.486 98.5449 99.5515 125.8505 59.3739 44.3368 55.0955
3 1 6 11.3091 10.0791 9.5946 8.1779 5.1035 21.7851 24.494
4 1 9 14.2323 17.207 17.9636 34.6257 8.1997 56.2834 18.4916
5 1 10 4.2856 14.8548 24.4393 21.8287 24.8089 17.2482 19.401
6 1 14 104.2786 74.6825 74.2683 71.6715 74.6312 117.0865 118.8432
7 2 3 369.8616 350.2154 370.2158 370.2146 345.6368 401.9628 370.2068
8 2 6 142.3408 129.5837 127.408 105.4201 142.408 158.2345 167.7058
9 3 4 440.01 440.01 440.01 440.01 415.01 454.01 440.01
10 4 5 111.2585 109.8517 109.3685 107.9327 104.9011 121.5786 24.1762
11 4 14 112.5137 109.697 109.1629 107.475 104.296 122.9178 125.3192
12 4 15 78.3005 78.3005 73.8488 91.8316 65.6285 33.4198 24.6169
13 5 6 36.2432 36.2432 32.0328 76.9296 37.7496 44.2597 58.5204
14 5 8 23.8601 23.8601 38.4868 47.1856 23.7231 19.3772 31.0821
15 6 7 103.6944 74.306 73.8939 71.3095 74.255 116.4228 108.2472
16 7 8 135.3359 136.0477 135.4083 140.2801 108.3683 110.4464 106.4975
17 11 10 23.2691 25.2026 24.4553 30.9399 14.791 9.4722 15.7156
18 11 16 21.23 20.1755 20.7957 16.0901 21.4492 25.6582 49.8932
19 12 11 23.1526 25.0586 44.3195 30.7258 14.7391 9.5299 15.9574
20 12 13 6.4277 8.2166 8.8638 14.4356 0.6986 26.1627 35.313
21 12 20 108.0546 111.7755 103.4367 110.3122 99.6976 99.2729 110.3233
22 13 14 6.4167 8.188 8.8318 14.3747 0.7666 26.4684 35.8445
23 13 17 67.7754 71.5942 64.1909 69.311 77.2569 39.2746 54.0419
24 14 15 46.2128 49.8833 42.5694 47.6416 30.4758 27.8296 32.6519
25 14 16 33.3843 31.7235 35.7383 32.3941 22.1961 11.7891 17.5429
26 14 18 21.8538 31.6014 22.9343 27.6345 27.7742 8.3207 11.8745
27 14 19 48.406 49.9756 45.9514 49.3023 59.5883 39.5207 54.0717
28 16 17 48.9258 50.4848 46.3828 49.798 60.3144 39.8368 54.6659
29 17 21 117.4578 118.7424 114.3347 118.0034 129.3558 107.2975 123.2379
30 20 23 14.83 14.83 14.83 14.83 49.83 14.83 14.83
31 21 22 118.4399 119.7619 122.3812 118.9089 86.7442 114.0443 110.5124
32 22 23 39.2409 37.3869 27.7368 38.6314 70.7848 39.766 37.1083
33 23 24 69.4892 70.0212 77.052 69.6298 69.6409 69.4892 29.5493
34 23 25 75.9831 76.3099 83.772 76.1132 80.411 75.9831 94.4214
35 24 41 11.9171 12.3328 19.5948 12.1411 16.3257 8.4415 29.9235
36 24 45 119.6669 124.3343 124.1685 114.9042 112.0177 125.1902 119.0289
37 25 26 137.4024 128.694 130.8722 152.8526 91.6192 31.304 9.861
38 25 27 252.8009 250.9469 241.2968 252.1914 284.3448 253.326 210.6683
39 25 28 51.0803 52.1308 35.2881 51.6802 67.6557 50.9269 44.1642
40 27 29 11.8575 12.277 10.5406 12.0865 16.2407 8.4022 29.6849
41 29 30 13.4565 13.6142 20.5794 13.5239 30.4525 19.5169 0.0951
42 30 31 84.4692 84.9196 91.1723 84.646 97.1149 87.7183 100.4335
43 32 31 5.5206 5.2272 5.8924 5.4103 9.7145 8.2823 23.9132
44 32 34 30.9379 28.0478 27.2211 40.1611 33.7399 4.1873 0.7871
45 32 36 4.1854 0.6704 0.5506 12.5345 5.8368 23.1312 27.6114
46 32 37 86.5403 84.9861 85.9917 85.7935 85.4244 87.2334 74.0428
47 32 46 20.9583 22.3206 21.3155 21.5194 21.8839 20.101 6.742
48 33 32 15.6077 18.3934 19.2177 6.4445 12.7485 8.9049 47.7065
49 34 33 7.3261 5.0258 6.0312 5.833 5.464 7.2729 37.9572
50 34 35 20.49 20.3557 11.0566 13.1267 16.3632 0.3657 35.1009
51 34 37 19.7714 5.1116 1.7877 39.0715 12.7052 19.7714 87.9507
52 35 32 13.4398 22.8397 21.513 4.883 13.7814 13.4398 42.6212
53 36 46 24.258 34.2689 32.967 7.4404 25.3897 27.1789 53.8372
54 37 46 187.6993 172.9184 145.9208 107.4435 180.6234 77.471 78.8233
55 38 34 43.809 53.4528 52.1067 25.7024 44.2739 57.6997 73.6161
Continued on next page
Chapter 6. Transmission pricing 90

Table 6.7 – continued from previous page

Bus number Base
Line From To case TB1 TB2 TB3 TM 1 TM 2 TM 3
56 38 37 37.5946 20.2961 29.0904 35.0329 36.766 5.7437 7.9861
57 39 37 31.1649 33.5485 39.917 33.7116 31.9096 37.0518 62.2899
58 39 42 55.8099 52.7354 64.4805 58.3201 56.5309 101.3263 86.6833
59 40 30 2.8179 5.8089 16.0017 0.8731 3.8115 52.8937 46.5545
60 40 41 17.3184 14.38 4.1899 19.3946 16.403 31.217 25.2796
61 41 42 93.7075 96.669 93.7075 91.5445 94.5937 146.3459 139.544
62 41 45 55.8998 57.1263 55.8998 54.7534 56.1646 81.2924 77.9949
63 42 43 19.9881 20.6725 19.9881 19.3269 20.127 34.6144 32.7218
64 42 44 15.8559 16.3924 15.8559 15.3354 15.9639 27.1435 25.6534
65 44 59 20.073 20.7546 0.832 19.402 20.2062 34.8073 32.8938
66 46 44 23.0315 22.2961 41.0569 28.2029 24.5074 81.9977 89.328
67 47 46 61.2696 62.9208 66.838 59.8811 61.6884 92.3613 88.1642
68 47 48 15.8959 16.4313 15.3213 15.3694 16.0008 27.2836 25.78
69 48 50 12.7407 12.2735 12.2735 12.1351 12.2735 20.5015 21.7966
70 48 54 60.693 59.6931 59.6931 59.5279 59.6931 14.2818 17.8361
71 49 48 82.5258 81.8914 81.8914 81.8413 81.8914 59.5358 67.6687
72 49 50 81.057 80.5979 80.5979 80.5493 80.5979 58.8348 66.7549
73 51 53 178.7344 177.8284 177.8284 177.8782 177.8284 169.6078 192.2228
74 51 54 14.5963 13.9306 13.9306 13.7814 13.9306 22.8742 14.5963
75 51 55 10.2816 10.2691 10.2691 10.2828 10.2691 15.0155 10.2816
76 52 53 78.6725 78.3311 78.3311 78.4983 78.3311 72.5033 78.6725
77 52 61 3.9143 3.8306 3.8306 3.8724 3.8306 20.9944 3.9143
78 55 58 12.3641 11.9073 11.9073 11.7698 11.9073 21.2487 12.3641
79 56 58 12.5981 12.1366 12.1366 11.9986 12.1366 20.9326 12.5981
80 57 56 24.3848 24.4927 24.4927 24.6047 24.4927 47.2258 24.3848
81 57 58 24.1729 24.2889 24.2889 24.399 24.2889 46.4917 24.1729
82 58 12 24.0974 24.1297 24.1297 24.09 24.1297 54.5673 24.0974
83 58 60 17.1614 17.2536 17.2536 17.6451 17.2536 17.1614 17.1614
84 58 61 22.131 22.1635 22.1635 22.0855 22.1635 22.131 22.131
85 59 61 30.1776 30.1959 30.1959 30.1957 30.1959 30.1776 30.1776
86 60 12 34.5276 34.5505 34.5505 34.5584 34.5505 34.5276 34.5276
87 60 61 58.7351 58.7369 58.7369 58.7629 58.7369 35.5019 30.4737
88 61 62 28.4263 28.4196 28.4196 28.4579 28.4196 20.4776 32.4573
89 62 25 63.9372 63.9125 63.9125 63.8787 63.9125 43.6954 59.873

Table 6.8: Apparent power flows for various transactions – Indian utility
62 bus system
Bus number Base
Line From To case TB1 TB2 TB3 TM 1 TM 2 TM 3
1 1 2 68.87 85.6188 86.0371 99.7378 65.3567 48.138 61.2791
2 1 4 123.5395 147.6499 148.4347 169.3182 119.4072 107.2808 117.2996
3 1 6 77.3747 94.2682 94.6917 108.5881 73.8511 54.9455 67.1961
4 1 9 88.8376 95.2839 95.6059 103.4936 88.4068 108.2538 127.8365
5 1 10 41.5067 52.0595 52.268 60.5804 39.0156 23.6566 33.7831
6 1 14 124.0184 124.6599 124.3198 129.46 117.6153 116.9524 147.417
7 2 3 128.6 127.8067 127.4373 126.5188 123.0749 135.7187 139.3455
8 2 6 37.8082 40.7656 40.6072 38.8655 41.4156 39.2968 73.6663
9 3 4 122.5043 121.4739 121.0437 119.5162 116.5227 131.8186 134.1176
10 4 5 114.9003 96.706 96.4419 94.8139 96.6732 127.359 119.6106
11 4 14 112.6255 94.4795 94.2153 92.5861 94.4467 125.0079 118.6225
12 4 15 405.1178 405.1168 405.0046 405.3271 385.8153 431.8156 407.2039
13 5 6 166.4658 168.4141 167.198 150.2358 179.1542 267.8344 287.1872
14 5 8 145.6251 143.4579 144.9945 165.8759 114.0329 76.5102 72.6001
15 6 7 440.6539 440.6535 440.6064 440.7423 416.5391 454.4854 441.5644
Continued on next page
Chapter 6. Transmission pricing 91

Table 6.8 – continued from previous page

Bus number Base
Line From To case TB1 TB2 TB3 TM 1 TM 2 TM 3
16 7 8 101.1826 104.1256 104.5279 111.9125 91.8364 62.3093 46.7966
17 11 10 136.4167 137.1692 136.5494 141.2829 109.5421 114.5096 110.779
18 11 16 25.7971 26.9821 26.2223 32.8093 16.3959 7.0049 18.6336
19 12 11 12.1243 12.8234 13.491 18.1091 7.4307 23.9022 35.5034
20 12 13 22.5041 21.9505 22.405 19.2134 22.0071 42.4497 48.7257
21 12 20 25.4979 26.6878 25.9249 32.5333 16.0356 6.9825 19.0694
22 13 14 112.9708 115.2772 108.8135 113.6155 104.7324 111.4259 124.7116
23 13 17 25.3818 32.672 25.3711 29.2089 29.3279 33.094 32.4615
24 14 15 32.7036 28.7511 27.9966 40.2863 34.0837 19.3022 8.3305
25 14 16 18.9099 19.48 20.0624 23.7389 15.164 26.4087 35.4507
26 14 18 76.1625 80.1371 74.8931 77.7 83.9886 53.032 58.8658
27 14 19 51.6789 51.8453 34.9614 51.317 67.345 55.5561 82.8803
28 16 17 46.3679 50.7892 43.981 48.6814 33.3726 33.8992 35.1953
29 17 21 33.0583 32.1235 35.9292 32.7508 23.7243 11.8784 18.7354
30 20 23 5.5402 3.9865 3.9325 12.5347 6.163 31.5569 29.9379
31 21 22 48.6748 49.6869 45.6347 49.0064 59.4581 41.4001 53.9092
32 22 23 49.1566 50.1282 46.2462 49.4749 59.5966 41.2294 54.1081
33 23 24 113.8147 114.8156 110.8035 114.1427 124.5012 105.6589 118.883
34 23 25 15.0509 15.0902 14.9543 15.0634 50.1044 14.9496 15.224
35 24 41 131.2286 132.0261 133.7934 131.3517 109.144 125.8472 125.4132
36 24 45 19.7004 19.5679 24.1177 19.5666 32.0177 22.8732 17.4927
37 25 26 78.0371 78.2788 84.3169 77.9486 77.9581 78.0754 55.5836
38 25 27 52.1905 51.2395 44.6177 52.1635 79.2128 56.4154 84.967
39 25 28 253.5376 252.2255 242.4649 253.6276 285.895 258.9891 292.6459
40 27 29 76.2731 76.3667 83.8081 76.1691 80.488 77.115 94.5657
41 29 30 8.2308 8.0676 8.6604 8.2292 12.2745 8.9473 24.0431
42 30 31 17.0367 17.1188 23.1272 16.9457 20.8256 17.7788 34.1605
43 32 31 18.1052 18.1856 17.541 18.0161 21.8315 18.8322 35.1106
44 32 34 157.4425 162.5375 162.7514 154.0897 153.0156 153.6796 166.0583
45 32 36 204.4108 195.4683 189.459 226.9499 202.0539 144.0663 117.2304
46 32 37 88.2731 88.3273 94.7195 88.0474 100.7869 90.7241 104.1719
47 32 46 14.21 18.2604 19.0688 7.7992 12.8779 35.184 46.8484
48 33 32 21.1805 21.2062 21.1529 21.1592 21.1764 20.7661 51.3398
49 34 33 107.9346 105.6136 106.6157 111.63 107.2917 127.2995 99.9902
50 34 35 19.4961 17.5291 8.1586 22.4345 19.5023 28.4623 26.2055
51 34 37 87.3964 86.9491 87.9718 87.9577 87.4421 90.1044 115.7942
52 35 32 35.9248 35.8311 35.386 36.1447 35.8045 36.9085 31.4349
53 36 46 27.2121 30.6467 30.0082 29.4256 27.2468 59.9895 44.6676
54 37 46 35.6549 40.2204 39.4704 32.7486 35.6842 69.3812 54.5319
55 38 34 113.4532 114.1232 115.5303 115.0625 112.7886 158.0027 149.9921
56 38 37 54.4745 60.6537 59.7071 45.6508 54.5008 93.3286 76.9145
57 39 37 37.505 21.5778 30.7507 35.9268 37.502 25.3801 19.388
58 39 42 31.4457 33.0221 39.2025 33.1791 31.4489 78.412 61.2877
59 40 30 55.4403 51.7856 63.0383 57.1447 55.4434 101.1826 84.5327
60 40 41 27.1575 25.5724 40.7833 29.9833 27.1626 73.2024 86.5402
61 41 42 14.2996 14.3547 18.5967 14.7503 14.2999 48.425 45.4522
62 41 45 93.011 94.9609 105.0288 90.1401 93.0049 138.9107 135.7196
63 42 43 56.4767 57.3751 64.0593 55.1566 56.4739 78.7507 78.639
64 42 44 60.4324 61.5121 65.0344 58.8474 60.429 86.6183 83.7971
65 44 59 20.6154 21.0955 29.3425 19.9153 20.6139 32.7703 34.2208
66 46 44 17.9678 18.2708 17.499 17.5317 17.9669 26.2789 25.6869
67 47 46 23.1944 23.5915 12.0486 22.6223 23.1932 34.0092 32.9373
68 47 48 16.0406 16.4788 15.3464 15.3955 16.0392 26.5698 29.0876
69 48 50 24.4342 24.4342 24.4342 24.406 24.4342 36.9801 34.3738
70 48 54 69.8652 69.8652 69.8652 69.7451 69.8652 48.6499 42.9591
71 49 48 23.67 23.67 23.67 23.6106 23.67 34.5803 32.6218
72 49 50 22.6105 22.6105 22.6105 22.5773 22.6105 34.9204 32.6389
Continued on next page
Chapter 6. Transmission pricing 92

Table 6.8 – continued from previous page

Bus number Base
Line From To case TB1 TB2 TB3 TM 1 TM 2 TM 3
73 51 53 83.9484 83.9484 83.9484 83.9012 83.9484 63.5539 69.9887
74 51 54 25.5671 25.5671 25.5671 25.6864 25.5671 48.0627 52.7839
75 51 55 81.3774 81.3774 81.3774 81.3309 81.3774 61.4758 67.7756
76 52 53 170.0644 170.0644 170.0644 170.1092 170.0644 161.2432 183.0601
77 52 61 11.7966 11.7966 11.7966 11.8102 11.7966 15.9376 13.4666
78 55 58 85.0198 85.0198 85.0198 85.1922 85.0198 78.8989 62.6685
79 56 58 26.2757 26.2757 26.2757 24.4923 26.2757 54.0098 49.3682
80 57 56 13.4596 13.4596 13.4596 13.4586 13.4596 27.2094 26.0481
81 57 58 24.0051 24.0051 24.0051 22.25 24.0051 52.0322 47.9294
82 58 12 24.6314 24.6314 24.6314 24.6108 24.6314 36.3673 34.1705
83 58 60 26.1288 26.1288 26.1288 26.2482 26.1288 48.4737 53.5805
84 58 61 19.7884 19.7884 19.7884 18.2229 19.7884 44.6243 41.107
85 59 61 43.6603 43.6603 43.6603 38.6623 43.6603 73.8932 69.1514
86 60 12 48.4582 48.4582 48.4582 43.4279 48.4582 76.114 70.8627
87 60 61 74.2915 74.2915 74.2915 70.5502 74.2915 59.7834 53.0085
88 61 62 31.0296 31.0296 31.0296 31.7211 31.0296 25.1349 35.1683
89 62 25 73.0682 73.0682 73.0682 73.0419 73.0682 59.2867 69.9797

Table 6.9: Wheeling charges – Indian utility 62 bus system

Transactions MW-cost method (|/hr) MVA-cost method (|/hr)

TB1 63672.67 22519.52
TB2 46753.55 18291.60
TB3 125737.20 60078.52
TM 1 -148233.11 -25045.10
TM 2 150587 147789.33
TM 3 166508.42 260565.60

6.4 Conclusions
This chapter presents two new embedded cost methods for the computation of
wheeling charges. These methods are applied on IEEE 30 bus and Indian utility
62 bus systems. Simultaneous bilateral and multilateral wheeling transactions
are carried out in the test systems to compute the wheeling charges. The
obtained results of the proposed embedded methods are compared with other
embedded cost methods such as postage stamp method and contract path
method to prove their effectiveness. The proposed methods consider the actual
system operating condition and hence, are more efficient.