This paper describes a methodology for allocating transmission costs among utilities and wheeling agents. The proposed approach is based on the extension of marginal cost theory to take into account discrete component sizes and economy of scale, while retaining desirable economic properties such as revenue reconciliation and incentives for all participants to remain in the pool. The methodology is illustrated in case studies with the Brazilian system. (author) 21 refs., 1 fig., 3 tabs.
Lima, J.W. Marangon;  Gorenstin, B G; Vieira Filho, X;  Chipp, H J; Alvarenga Filho, S;  Hirota, M;  Pereira, M V.F. 
- Escola Federal de Engenharia de Itajuba, MG (Brazil)
- Centro de Pesquisas de Energia Eletrica (CEPEL), Rio de Janeiro, RJ (Brazil)
- ELETROBRAS, Rio de Janeiro, RJ (Brazil)
- Companhia Energetica de Sao Paulo (CESP), SP (Brazil)
- Power System Research, Inc., Rio de Janeiro, RJ (Brazil)