Operations Research, Systems Engineering and Industrial Engineering Commons^™

Cost Allocation For Transmission Investment Using Agent-Based Game Theory, Jakapun Mepokee, David Lee Enke, Badrul H. Chowdhury

Engineering Management and Systems Engineering Faculty Research & Creative Works

Due to electrical power restructuring, a dramatic change has been made to the generation and transmission sectors of the power industry. Rules and legislation are continuously changing. To promote more competition, transmission has to be expanded or upgraded to remove congestion and market power. The cost allocation of new investment in transmission has to be recalculated. The socialization methods of the past have been shown to be unfair to some market and network participants. The decentralization of cost allocation must be considered. The proposed paper provides a comparison between traditional cost allocation methods and a new cost allocation method based …