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Missouri University of Science and Technology

Theses/Dissertations

2013

<p>Electric utilities -- United States<br />Power resources -- Finance -- Mathematical models</p>

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A Conforming Method For Regional Marginal Loss Surplus Allocation, Xiaolong Wang Jan 2013

A Conforming Method For Regional Marginal Loss Surplus Allocation, Xiaolong Wang

Masters Theses

"The marginal transmission loss model is used in electricity markets across the United States to measure a resource's marginal contribution to system loss. This model prices loss into the locational marginal price as a marginal loss component. Marginal loss pricing will render a net revenue surplus within an energy balanced system. This marginal loss surplus (MLS) is typically allocated back to scheduling coordinators in proportion to the measured demand on a system-wide basis. However, when the system experiences heterogeneous loss across different regions, the system-wide allocation method fails to recognize the regional differences in actual loss costs. As a result, …