A generalized probabilistic cost of service allocation approach for generation and transmission facilities

The authors present an integrated approach for cost of service allocation of generation and transmission facilities which utilizes a probabilistic technique similar to that used by many utilities for system planning. The procedure for composite system cost of service allocation is presented. The use of the loss of energy expectation index is extended from generation capacity studies to composite generation and transmission system cost of service allocation. The technique is demonstrated by application to the IEEE Reliability Test System (IEEE-RTS). The results obtained by applying selected methods to the IEEE-RTS are illustrated and compared.>