Cost analysis of wheeling in the electric-utility industry
Wheeling occurs in an electric power transmission system when electric utilities transfer power for others to use. Power transfers facilitate joint operations and bulk-power transactions in the electric utility industry. The increasing use of transmission systems for power transfers arises from the structural and economic changes that create incentives for mutually beneficial transactions involving utilities, wholesale power customers, and nontraditional suppliers of electricity such as cogenerators, small-power producers, and independent generating companies. This thesis develops methodologies for determining marginal and total short-run costs of wheeling. These methodologies are based on an optimal power flow model of an interconnected electric power system. This model provides an exact representation of power flows and losses. The basic approach to finding marginal wheeling costs uses sensitivity analysis on the optimal power flow model. The marginal wheeling costs are computed from area cost sensitivity factors estimated by solving a selected system of equations. Using this methodology, marginal wheeling costs can be directly computed for a power transfer between any two areas or points in an electric power system. Total wheeling costs are determined using a new approach to allocating costs between bulk power services.
- Research Organization:
- Wisconsin Univ., Madison (USA)
- OSTI ID:
- 5358678
- Resource Relation:
- Other Information: Thesis (Ph. D.)
- Country of Publication:
- United States
- Language:
- English
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