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Cost Allocation of Transmission Line using a New Approach of MW Mile Method


  • K L University, Guntur - 522502, Andhra Pradesh, India
  • Department of Electrical and Electronics Engineering, K L University, Guntur - 522502, Andhra Pradesh, India


Objective:Many methods have been proposed to evaluate the cost of transmission lines. The MW mile method is a kind embedded pricing method to find transmission cost. The proposed method considers the active power flow in the network and it is the first pricing strategy to consider the real network conditions and power flow in the network. MW mile method is also useful to cover the total transmission system fixed cost among all network users. The primary objective of this paper is to provide charges economically to the customers by considering not only the active power flow but also the power factor.Findings: The power flow values are calculated by using DC power flow and generalized load distribution factors are used to determine load contribution to line flows. Application/Improvements: This method is tested on IEEE 14 bus test system with considering all network parameters to fairly allocate cost to the end users.


Cost Allocation, MW Mile Method, Power Factor, Transmission Pricing.

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