Derivation and applications of optimum bus incremental costs in power system operation and planning

Journal Article · Sun Dec 01 00:00:00 EST 1985 · IEEE Trans. Power Appar. Syst.; (United States)

DOI:https://doi.org/10.1109/TPAS.1985.318871· OSTI ID:5980484

Ponrajah, R A; Galiana, F D

Currently utility companies in North America are encouraging customer cogeneration as an alternative to system expansion, mainly to alleviate some of their financial burdens due to ongoing construction projects. This new trend calls for a rational basis for utilities to compute payments for third party producers. This paper investigates two schemes, one based on the system incremental cost (SIC) (System Lambda) and the other based on optimum Busload Incremental Costs (BIC's) defined as the minimum additional operating cost due to a unit magnitude of energy increment at all system buses taken one at a time. We show here that, unlike the SIC, the BIC's provide the true cost of electricity at all system buses under all operating conditions. Hence, these should prove an excellent basis for a unified policy in the tariffication of economy interchanges.

• Research Organization: Department of Electrical Engineering, McGill University, Montreal, Quebec
• OSTI ID: 5980484
• Journal Information: IEEE Trans. Power Appar. Syst.; (United States), Vol. PAS-104:12
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
ELECTRIC UTILITIES
COGENERATION
INCREMENTAL-COST PRICING
DUAL-PURPOSE POWER PLANTS
ENERGY EXPENSES
OPERATING COST
OPERATION
PLANNING
POWER SYSTEMS
RATE STRUCTURE
COST
DEUS
ENERGY SYSTEMS
POWER GENERATION
POWER PLANTS
PRICES
PUBLIC UTILITIES
STEAM GENERATION
296000* - Energy Planning & Policy- Electric Power