congestion management and transmission rights in centralized electric markets a new congestion management system is proposed applied under nodal and zonal dispatches with implementation of fixed transmission rights ftr and flowgate rights fgr respectively the ftr model proves to be especially suitable for congestion management in deregulated centralized market structures with nodal dispatch while the fgr is suitable for decentralized markets the main contribution of this work is a nontraditional valuation of fgr under a centralized market such as those present in latin america that builds a link between both transmission rights under the same market structure to accomplish that a computational model is developed implementing marginal theory where congestion components are introduced in the pricing model an application to the chilean central interconnected system indicates that fgr presents advantages over ftr regarding signals on grid use but its application results in complications that make its implementation unattractive

transmission system management and pricing new paradigms and international comparisons the transmission system once the necessary but nearly invisible component of the electric power system is now the focus of physical electrical and financial attention of the utility and more significantly their potential suppliers customers this paper has three primary objectives the first is to present a discussion of a new paradigm for the electric power industry the second is to review transmission pricing options specifically those utilizing either long run lrmc or short run srmc marginal cost based approaches the third is to provide a review of innovative approaches to transmission asset management and finance as seen from international experience

min max fairness criteria for transmission fixed cost allocation conventionally transmission fixed cost allocation is carried out on postage stamp basis amongst various other ways of solving the problem the cost allocation under the usage based domain has also been suggested namely based on proportionate tracing and recently by optimization based real power tracing changing the cost allocation regime from postage stamp basis to usage based methods though technically sound can pose fairness issue the fairness criteria in its simplest form would allocate cost in equitable manner on per unit basis while meeting the constraints the optimization based tracing provides room for defining an objective leading to tracing compliant postage stamp method that strikes a balance in allocation between conventional postage stamp and proportionate tracing based methods in this paper we address this complex cost sharing problem by suggesting a min max fairness algorithm using optimization based real power tracing the min max algorithm achieves fairness by equalizing allocations within constrained space and reaching an equilibrium where further balancing cannot be achieved we show that computing min max fair solution simply corresponds to solving a sequence of sparse lp problems for real power tracing the algorithm satisfies the property of aggregate invariancy results on actual data of central transmission utility of western regional grid of india as well as ieee 30 bus system validate the claims the results are compared with the tracing compliant postage stamp method

an integrated framework for cost allocation in a multi owned transmission system this paper describes a methodology for allocating transmission costs among users of a centralized transmission service in the proposed approach the share of each participant is proportional to its impact on power system transmission investment requirements this allocation rule provides incentives for all participants to remain in the pool and ensures revenue reconciliation it is shown that under some simplifying assumptions the proposed scheme reduces to a modified mw mile rule thus providing some insight on that method s economic basis other issues such as credits for counterflows and distortions due to economies of scale are also addressed the methodology is illustrated in case studies with the brazilian power system

marginal pricing and supplement cost allocation in transmission open access the application of marginal costing to transmission pricing in open access schemes requires the collection of a supplement to finance the transmission systems the paper describes the application of marginal cost based pricing in the chilean power system and the difficulties faced in allocating the supplement among parties involved alternative methods for defining the allocation are formulated generalized generation and load distribution factors for cost allocation are formulated and implemented the methods are applied to allocate payments for transmission services provided by the transmission network and by a distribution company

interest rate pass through and monetary transmission evidence from individual financial institutions retail rates official interest rate changes should influence short rates on money market instruments and retail products such as deposit accounts and mortgages but complete pass through is often taken for granted this paper provides a theoretical and econometric framework for assessing the evidence for this assumption using seventeen years of monthly data for rates on thirteen deposit and mortgage products offered by individual uk financial institutions the methodology allows for asymmetries and non linearities in adjustment and the results show that the speed of adjustment in retail rates depends on whether the perceived gap between retail and base rates is widening or narrowing

transmission congestion relief using privately owned large scale energy storage systems in a competitive electricity market the trend of integrating more nondispatchable renewable sources into the electric grid and phasing out dispatchable fossil fueled power plants in the near future reduces the operational flexibility increases the chance of transmission congestion and endangers the stability of electric system utilities are investigating the application of large scale energy storage systems esss to address some of these imminent challenges to their power systems in this paper the application of privately owned large scale esss for the purpose of congestion relief in transmission systems as an ancillary service is investigated it is demonstrated that in conventional optimal dispatch algorithms for an ess the storage system cannot effectively contribute to congestion relief since the dispatch algorithm has not prepared the ess in advance hence a new real time optimal dispatch rtod algorithm is proposed that aims to generate revenue primarily by exploiting electricity price arbitrage opportunities in the day ahead electricity market while optimally preparing the ess to maximize its contribution to congestion relief as an ancillary service a compressed air ess is sized and employed for evaluations of the proposed rtod algorithm the efficacy and feasibility of the proposed algorithm are validated using real world price data from ontario s wholesale electricity market an analysis is presented regarding the appropriate amount of financial compensation for the ess owner due to this contribution to congestion relief in the studied electricity market

transmission use of system charges based on trade offs between short run operation cost and long run investment cost previous studies on long run network charges assume that network reinforcement would be required when the loading level of a circuit reaches its designed capacity such assumption works well for a passive distribution network but is not valid for transmission networks as they have active congestion management capabilities transmission network operators normally can only justify for network investment when congestion costs exceed network expansion costs this trade off between operational cost and investment cost is not considered in any of the existing long run marginal or incremental cost pricing lric or lrmc

cost benefit reflective distribution charging methodology this paper describes the principle and implementation of a new mw mvar miles charging methodology which was developed to reflect three key cost drivers in distribution network development the distance used to support nodal real and reactive power injection withdrawal the degree of support offered by the network assets and the operating condition of the supporting assets in terms of their power factors the inclusion of the latter driver allows the developed charging methodology to reward network users who are contributing to better power factors and better network utilization while penalizing customers who worsen power factors and network utilization as a consequence the charging model is able to provide forward looking incentives for network customers to behave in a manner to better the network condition which will in turn help to reduce the cost of future network development in addition the separation of real and reactive power pricing would give network users clear indications of the cost of their reactive power draw from the network which in turn could help them to evaluate the economics in investing in reactive power compensation devices the proposed charging methodology is demonstrated on a practical eight busbar distribution system with a mixed demand and embedded generation eg this paper results from work undertaken in a project on distribution charging methodologies for western power distribution the views in this paper expressed are not those of western power distribution

marginal loss pricing for hours with transmission congestion nodal electricity prices are designed to send efficient economic signals to market participants for operating and investment decisions the inherent nonlinearity of transmission losses and the use of marginal loss pricing can obscure the intended economic information in the loss component of nodal prices as one step in clarifying the determination of the marginal loss price component this paper discusses the calculation of nodal electricity prices in lossy networks and presents a variety of accepted methods for determining marginal loss this paper then proposes a method for calculating the marginal loss component of nodal prices during hours with congestion that reflects each market participant s contribution to marginal losses more accurately than current implementations the proposed method recognizes that increases in incremental energy flows cannot flow across constrained lines and thus system wide marginal losses should not be attributed to generators or loads in the constrained subregions the objectives of the discussion are to improve the understanding of how marginal losses are determined and also to improve the accuracy of the information conveyed in the marginal loss price component the ultimate goal is to promote more efficient price signals to electricity market participants for both transmission loss and congestion

causes and effects of vertical intergration this paper sets out to define new measures of industry average forward and backward integration and incorporate them into an empirical stucture conduct performance model results suggest that integration is encouraged where there are relatively few firms in an industry and if sales are increasing forward integration occurs in reaction to large outgoing distribution margins backward integration acts to increase concentration at least in some parts of the manufacturing sector integratin has a complex and interactive effect on profitability serving sometimes to raise profitability and sometimes to lower it

the productivity paradox evidence from indirect indicators of service sector productivity growth whereas difficulties in measuring the output of service sectors have been well documented input measures are reasonably accurate using u s input output data for the period 1958 87 and a number of indices of skill and occupational change derived from the dictionary of occupational titles and decennial census data covering the period 1960 1990 i find strong evidenec that among all industries in the economy industry productivity growth is positively related to r d intensity and knowledge spillovers from other industries but negatively related to major restructuring of technology this abstract was borrowed from another version of this item

transmission network cost allocation based on equivalent bilateral exchanges this paper presents a novel methodology for allocating the cost of a transmission network to its users based on the principle of equivalent bilateral exchanges which states that after all physical laws governing the flow of power have been met each demand is assigned a fraction of each generation and each generator is assigned a fraction of each demand in a uniform manner transmission cost allocation based on this principle presents several advantages namely independence from the choice of the slack bus recognition of counter flows and transmission use charges that are stable and always positive

a probabilistic approach for determining the optimal amount of transmission system usage over the past decade electric power systems have been restructured based on different models to introduce competition among market participants transmission open access for suppliers and customers is one of the most prevailing unbundling services usually a connection tariff is established based on different market factors including the actual usage of the transmission network in brazil most vertically integrated companies owned by the federal and state governments were unbundled and new transmission companies are being created these companies make their assets available to the independent system operator designated as operador nacional do sistema eleacutetrico ons one of the main objectives of ons is to manage transmission services over a certain voltage level to ensure nondiscriminatory access to the grid all transmission users including regional distribution companies pay wheeling transmission charges at each delivery or connection point with the major brazilian network administrated by ons this paper presents a methodology for determining the optimal amount of transmission system usage atsu that must be contracted by a regional distribution company at each connection point in the proposed approach the maximum flow at each connection is represented as a random variable in order to obtain the distribution probability of the transmission charges as a function of the atsu parameter besides providing the optimal amounts to be contracted the proposed probabilistic methodology allows quantifying the risks of violation of each contract and estimating possible penalties all methodology development steps are described and illustrated through numerical examples an application to a typical brazilian regional distribution company is also discussed

allocation of transmission losses to bilateral contracts in a competitive environment under open access market driven transactions have become the new independent decision variables defining the behavior of the power system understanding the impact of bilateral transactions on system losses is important to be able to allocate a loss component to each individual transaction and improve economic efficiency the theory presented here is based on the argument that it is always possible to compute the exact loss allocation corresponding to an infinitesimal bilateral transaction this leads to a set of governing differential equations whose solution yields the loss allocation for contracts of any size several examples illustrate the properties of both the proposed allocation equations and other methods the dependence of the proposed solution on the path of integration and a number of implementation issues

allocation of transmission fixed charges an overview the application of marginal cost in pricing the transmission services has shown not effective mainly due to revenue reconciliation problems to overcome this a set of other methods derived from the mw mile rule has been suggested to allocate transmission fixed costs this paper compares such methods known as embedded cost methods in a centralized transmission network environment although these methods actually share the total cost and are very simple they are usually rejected due to the lack of a good economic reasoning the economic issue and the impact on the system expansion planning of such allocation are addressed in this paper some examples with the brazilian transmission system illustrate the results derived from this analysis

a load flow based method for calculating embedded incremental and marginal cost of transmission capacity this paper describes the principles of a load flow based method for allocating the cost of transmission capacity the method estimates the usage of each transmission facility with cost defined on a per facility basis embedded incremental and marginal cost of transmission capacity are defined and compared to each other a discussion of other load flow based methods and their application to marginal cost is included

the impact of remanufacturing in the economy very few durable goods are recovered at the end of their useful lives however this situation could reverse with the development of a stronger remanufacturing industry in the economy this paper evaluates the impact of remanufacturing in a hypothetical situation where remanufacturing holds a significant share of the economy presently dominated by the original manufacturing industries it would have direct impacts on the demand for several inputs we adapt the inter industry input output framework with the development of a methodology to consider these changes subsequently we apply the model to the 30 sector aggregation of the french input output national data to illustrate the nethod and to evaluate the impact that remanufacturing may have on the economy the analysis assumes that remanufacturing sectors substitute labor and transport services for the usual inputs such as raw materials and semi finished goods we find that remanufacturing may satisfy the same final demand from all sectors requiring fewer intermediate resources with proportionally higher demand of labor

transmission congestion management in an electricity market managing transmission congestion in an unbundled electric power system poses a challenge to an independent system operator iso this paper considers an open transmission dispatch environment in which pool and bilateral multilateral dispatches coexist and proceeds to develop a congestion management strategy for this scenario prioritization of electricity transactions and related curtailment strategies are explored and a mechanism for coordination between market participants to achieve additional economic advantages is described

transmission loss allocation through equivalent bilateral exchanges and economical analysis a new loss allocation la scheme based on the principle of equivalent bilateral exchanges ebes is presented and compared with other available techniques formulation and results from extensive simulations including consistency tests show that the suggested methodology has several desirable properties it is flow based requiring only a solved load flow for its implementation it is not dependent on the choice of a slack bus it is straightforward to apply undesirable negative loss allocation is not produced and low volatilities are shaped an economic analysis with various la methods is also carried out when these are integrated into a combined economic dispatch load flow dispatch strategy a likely scenario for la in a real system this combined dispatch strategy yields prices charged to the loads and rates received by the generators that account for loss allocation and loss supply results show that these economic indexes are very close to the marginal costs derived from an optimal power flow opf approach with the advantage of reducing volatility

improving inter transmission compensation in eu abstract this article is intended as a roadmap to the correction of the existing shortcomings in the eu power transmission tariff system especially in the existing mechanism of inter transmission system operator tso compensation itc the relevant literature is surveyed and the essence of the issue is formulated definitions preconditions assumptions and constraints for the problem are explained the paper outlines the most simple and straightforward approach for the improvement of inter transmission compensation in the continental european synchronous area the proposals are based on the old practice of socialization of the network costs retained in almost all european countries i e the principle of charging the customers at the exit equal treatment is given to internal users and cross border users a tso is reimbursed for both internal and cross border flows from the users conjoined to its network on an equal footing with the users extracting power from the peripheral nodes the existing inequity in individual payments for power transmission is overcome and the cross border subsidy element is avoided this approach should be tested modeled and evaluated with real data for the european union of networks some key parts of the article are written in a more popular style in order to be accessible to inexpert readers as well

a zonal congestion management approach using real and reactive power rescheduling in a deregulated electricity market it may always not be possible to dispatch all of the contracted power transactions due to congestion of the transmission corridors system operators try to manage congestion which otherwise increases the cost of the electricity and also threatens the system security and stability in this paper a new zonal cluster based congestion management approach has been proposed the zones have been determined based on lines real and reactive power flow sensitivity indexes also called as real and reactive transmission congestion distribution factors the generators in the most sensitive zones with strongest and nonuniform distribution of sensitivity indexes are identified for rescheduling their real power output for congestion management in addition the impact of optimal rescheduling of reactive power output by generators and capacitors in the most sensitive zones has also been studied the proposed new zonal concept has been tested on 39 bus new england system and a 75 bus indian system

long run incremental cost pricing based on unused capacity this paper proposes a novel approach for providing long run incremental cost lric pricing in network charges the proposed approach makes use of the unused capacity of an exiting network to reflect the cost of advancing or deferring future investment consequent upon the addition of generation or load at each study node on a distribution network compared with existing approaches to lric pricing the proposed approach produces forward looking charges that reflect both the extent of the network needed to service the generation or load and the degree to which that network is utilized the efficacy of the proposed lric approach has been validated by a comparison with the established investment cost related pricing icrp method used for deriving transmission charges in great brain gb this paper draws on work undertaken in projects for western power distribution and ofgem office of gas and electricity markets u k however the views expressed in this paper are those of the authors

transmission loss allocation a comparison of different practical algorithms a pool operated electricity market based on hourly auctions usually neglects network constraints and network losses while applying its market clearing mechanism this mechanism determines the accepted and nonaccepted energy bids as well as the hourly market clearing prices as a result ex post procedures are needed to resolve network congestions and to allocate transmission losses to generators and demands this paper focuses on transmission loss allocation procedures and provides a detailed comparison of four alternative algorithms 1 pro rata pr 2 marginal allocation 3 unsubsidized marginal allocation and 4 proportional sharing a case study based on the ieee rts is provided different load scenarios covering a whole year are analyzed finally conclusions and recommendations are stated

non core bank liabilities and financial vulnerability a lending boom is reflected in the composition of bank liabilities when traditional retail deposits core liabilities cannot keep pace with asset growth and banks turn to other funding sources non core liabilities to finance their lending we formulate a model of credit supply as the flip side of a credit risk model where a large stock of non core liabilities serves as an indicator of the erosion of risk premiums and hence of vulnerability to a crisis we find supporting empirical evidence in a panel probit study of emerging and developing economies

an aumann shapley approach to allocate transmission service cost among network users in electricity markets this work presents a new methodology for the allocation of transmission service cost among network users in energy markets the proposed method is based on an optimization game theoretic framework aumann shapley that retains the desirable properties of other existing methodologies such as the average participations factors apf and long run marginal costs lrmc the approach is shown to be computationally feasible and presents desirable characteristics in terms of economic coherence and isonomy computational results are presented for the brazilian power system and compared with those obtained by three other methodologies lrmc apf and the current method adopted in brazil

transmission loss allocation through complex power flow tracing this paper presents a new method for transmission loss allocation the method is based on tracing the complex power flow through the network and determining the share of each load on the flow and losses through each line transmission losses are taken into consideration during power flow tracing unbundling line losses is carried out using an equation which has a physical basis and considers the coupling between active and reactive power flows as well as the cross effects of active and reactive power on active and reactive losses a tracing algorithm which can be considered direct to a good extent as there is no need for exhaustive search to determine the flow paths as these are determined in a systematic way during the course of tracing results of application of the proposed method are also presented

nodal price control a mechanism for transmission network cost allocation this paper presents an approach for the allocation of transmission network costs by controlling the nodal electricity prices the proposed approach introduces generation and nodal injection penalties into the traditional economic dispatch so as to create nodal price differences that recover the required transmission revenue from the resulting congestion rent as a consequence the new electricity prices reflect not only the marginal costs of production subject to transmission constraints but also the capital costs of the network this is the approach commonly adopted with most commodities whose price includes the unit cost of the good itself as well as the transportation cost from the production centers to the final consumer

combined pool bilateral dispatch i performance of trading strategies this three paper series deals with the dispatch of power networks under mixed pool bilateral trading the major questions examined are i to what degree does the relative level of pool versus bilateral trading influence performance in terms of individual power levels costs prices revenues and expenditures ii what is the comparative performance of mixed trading with firm and nonfirm bilateral contracts under various curtailment strategies and iii is the revenue derived from the pool and bilateral trading consistent with the corresponding unbundled costs the above issues are sequentially addressed in each of the three parts the eventual goal of these results is to help generator and load serving entities choose appropriate relative levels of pool versus bilateral trades while considering risk economic performance as well as physical constraints this paper proposes a one step optimal power flow model that dispatches the pool in combination with the privately negotiated bilateral contracts while minimizing cost and accounting for both losses and congestion in part i notions of pool bilateral demand and generation as well as a number of technical and economic performance measures for each competing entity are defined this dissection of total and individual financial measures according to pool or bilateral trading allows the market participant to evaluate the profitability of each component of its chosen pool bilateral mix a number of simulation results illustrate the effect of varying the relative levels of pool bilateral trading on the values of individual performance measures

priority service pricing investment and market organization tingent forward delivery contracts offered by a seller each customer s selection of one contract from the menu determines the customer s service order or priority in each contingency the seller rations supplies by serving customers in order of their selected priorities until the supply is exhausted or all customers are served various forms of priority service are widely

allocation of fixed costs in distribution networks with distributed generation in this paper we propose a method for the allocation of fixed capital and nonvariable operation and maintenance costs at the medium voltage mv distribution level the method is derived from the philosophy behind the widely used mw mile methodology for transmission networks that bases fixed cost allocations on the extent of use that is derived from load flows we calculate the extent of use by multiplying the total consumption or generation at a busbar by the marginal current variations or power to current distribution factors pidfs that an increment of active and reactive power consumed or generated in the case of distributed generation at each busbar produces in each circuit these pidfs are analogous to power transfer distribution factors ptdfs unlike traditional tariff designs that average fixed costs on a per kwh basis across all customers the proposed method provides more cost reflective price signals and helps eliminate possible cross subsidies that deter profitable in the case of competition or cost effective in the case of a fully regulated industry deployment of dg by directly accounting for use and location in the allocation of fixed costs an application of this method for a rural radial distribution network is presented

closure to discussion of transmission loss allocation part i single energy market for original article by a m leite da silva and j g de carvalho costa see ibid vol 18 p 1389 94 nov 2003 and for discussion by a j conejo and f d galiana see ibid vol 19 no 4 p 2111 nov 2004

prospective reconciliation of transmission loss cost in alberta one of the challenges in alberta s deregulated electricity market is to recover transmission loss costs in a fair and equitable manner the independent system operator iso the alberta electric system operator or aeso in alberta canada has introduced a new prospective methodology to reconcile the transmission loss revenue to loss cost on an annual basis since january 1 2006 in the reconciliation process a quarterly calibration factor cf is calculated to true up the difference between loss revenue and loss cost the cf is defined as the percentage of the combined actual and forecasted difference in loss revenue and loss cost divided by the loss factor customer volumes and pool price the focus behind this chosen methodology is to have a small cf in each quarter a stable reconciliation pattern and a small year end difference the new methodology has met these three goals in alberta s deregulated electricity market

marginal pricing of transmission services an analysis of cost recovery this paper presents an in depth analysis of network revenues computed with marginal pricing and in particular it investigates the reasons why marginal prices fail to recover the total incurred network costs in actual power systems the basic theoretical results are presented and the major causes of the mismatch between network costs and marginal revenues are identified and illustrated with numerical examples some tutorial and others of realistic size the regulatory implications of marginal network pricing in the context of competitive electricity markets are analyzed and suggestions are provided for the meaningful allocation of the costs of the network among its users

non core liabilities and interest rate pass through bank level evidence from indonesia abstractthe policy importance of non core liabilities bank liabilities other than equity and retail deposits has risen to prominence in recent years with a number of studies highlighting it as a

transmission loss unbundling and allocation under pool electricity markets this paper presents a methodology based on the circuit theories for unbundling and allocation of transmission losses among the participants of a pool based electricity market starting from a known operation point and using the basic network equations without additional assumptions an expression of the branch losses based on nodal current injections is derived since the power flow equations and circuit theories are satisfied the methodology turns explicit in a natural way separating the losses at each system branch and assigning the responsibility to the respective market participants it means that the loss allocation of each branch which is produced by each generator and consumer is obtained extensions and strategies considering unsubsidized and predefined proportion based loss allocation as well as issues related with the allocation fairness and transparency are also included comparisons with previous methods and validation tests of the proposed method are reported by using the ieee reliability test system

transmission management for congested power system a review of concepts technical challenges and development of a new methodology transmission networks have some constraints that should be addressed in order to ensure sufficient control to maintain the security level of a power system while maximising market efficiency the most obvious drawback of transmission constraints is a congestion problem that becomes an obstacle to perfect competition among the market participants since it can influence spot market pricing as the power flow violates transmission constraints redispatching generating units is required and this will cause the price at every node to vary this manuscript presents concepts technical challenges and methodology for investigating an alternative solution to the redispatch mechanism and then formulates lmp scheme using an optimisation technique that may well control congestion as the main issue the lmp scheme are varied and improved to take into account the energy price congestion revenue cost of losses as well as the transmission usage tariff by utilising shift factor based optimal power flow sf opf which is derived from the well known dc optimal power flow dc opf model

the new chilean transmission charge scheme as compared with current allocation methods we describe the new method used in chile to allocate transmission charges among generating companies and customers as defined in law 19 940 of march 2004 also known as ley corta or short law we show that the new chilean transmission charge scheme is a hybrid based on marginal cost pricing identification of use through economic benefits and flow identification methods and last a postage stamp to redistribute almost all the charges that customers have to pay we also estimate the direct per kilowatthour charge that customers will pay and discuss its effect on location and expansion signals

an alternative treatment of secondary products in input output analysis the united nations system of national accounts includes an input or use table u uij of commodities i consumed by industries j and an output or make table v vj of industries producing commodities this paper is on the construction of an input output or requirements table a aij of commodities i for commodities the established constructs are criticised the current favourite the industry technology model is rejected on the ground that the choice of base year prices affects the results in more than a scaling fashion the paper presents an alternative to the existing constructs which cancels out the shortcomings and amounts to a rich representation of technology the united nations 1967 system of national accounts includes an input or use table u u1j of commodities i consumed by industries j and an output or make table v vij of industries i producing commoditiesj this paper is on the construction of an input output or requirements table a aij of commodities i for commodities j industry tables and mixed tables are not considered section i reviews the established constructs section ii evaluates them special attention is given to the so called industry technology model which is now used by the united states 1980 section iii derives a new construction of a requirements table section iv applies the analysis for convenience we have chosen the well organized tables of canada 1981 for our experiment section v discusses the results section vi concludes the paper 1 the established constructs the established constructs are the commodity technology model the by product technology model the industry technology model and the mixed technology model of gigantes 1970 some notation facilitates the presentation of these models e denotes the unit colunm vector denotes transposition denotes diagonalization either by suppression of the off diagonal elements of a square matrix or by placement of the elements of a vector denotes off diagonalization by suppression of the diagonal elements of a square matrix thus for a square matrix a a a the commodity technology model c rests on the assumption that each commodity has its own input structure industries are independent combinations of outputs j with their input structures ac i 1 n thus industry j needs for the production of vik units of output k an amount a v1k of input i summing over outputs k yields industry j s total demand for input i uij ekaikvjk hence u acv thus the commodity technology requirements table is given by ac uv note that existence may be guaranteed only if the number of commodities equals the number of industries the by product technology model b rests on the by product assumption that each industry produces outputs in a fixed proportion all secondary products are by products and therefore can be treated as negative inputs yielding net input structures a b i 1 n for the primary outputsj thus industry j needs for the production of vjj units of its primary output a net amount ui1 vjj a bvjj of commodity i hence u abv thus the by product technology requirements table is given byab u v v 1 note that again existence may be guaranteed only if the number of commodities equals the number of industries the industry technology model i rests on two assumptions one is the industry technology assumption that each industry j has the same input requirements for any unit of output here output is measured in value the other assumption is that of fixed commodity market shares of industries thus industry k needs uik livkl of input i per unit of output in particular for commodity j and its market share vkj livij is fixed taking the market share weighted average over industries k yields the amount of input i required for received for publication september 17 1981 revision accepted for publication april 6 1983 new york university and erasmus university jadavpur university and new york university respectively the application of the analysis was suggested by wassily leontief to the authors when they were at the institute for economic analysis new york a first version of the paper was presented at the seventeenth general conference of the international association for research in income and wealth held at chateau de montvillarg re gouvieux france august 16 22 1981 the authors are grateful to kishori lal jean h p paelinck ashok parikh and an anonymous referee for valuable comments to henk gravesteijn and jimmy younkins for computational assistance and to the sloan foundation for financial support

wheeling of power under deregulated environment of power system a bibilographical survey the power industry is moving rapidly from regulated conventional setup to a deregulated environment there is an urgent need to keep a track of international experiences and activities taking place in this emerging field this paper gives a bibliographical survey and general backgrounds of research and development in the field of power system wheeling under deregulated environment based on over 170 published articles wheeling in general and the establishment of wheeling rate in particular are subjects of extensive debate today this will be very much useful for all countries especially those developing countries which are moving toward the unbundling of electricity supply industry esi the collected literature have been divided into many section so that new researchers do not face any difficulty for obtaining literature particularly in the area of wheeling of power under deregulated environment

cost of wheeling methodologies the cost of wheeling and the methodology by which it is computed is a high priority problem throughout the power industry due to the growth in transmission facilities the cost differentials between utility companies and the dramatic growth in nonutility generation capacity this paper contains descriptions and summaries of computational procedures and data requirements of four embedded cost methodologies two long run incremental cost methods and the short run marginal cost method four methodologies are also presented for allocating the wheeling costs among a number of wheels when simultaneously present on a company s system as required for the standard long run incremental cost method

the costs of wheeling and optimal wheeling rates wheeling is the transmission of electrical energy from a buyer to a seller through a transmission network owned by a third party this paper provides a theoretically sound yet practical to implement basis for setting wheeling rates these wheeling rates are based on marginal costs determined by losses and effects of line flow and voltage magnitude constraints adjusted up or down as necessary to account for embedded capital costs i e revenue reconciliation simple numerical examples are provided to illustrate interesting phenomena such as negative wheeling rates which yield positive net revenue comparisons with present day wheeling rates show that major differences exist the wheeling rates of this paper yield a no lose situation for the buying selling and wheeling utilities

available transmission capability sell firm or interruptible available transfer capability atc is an important parameter for all companies participating in the power transaction activities one aspect of the atc analysis relates to the following important questions what part of the posted atc should be bought sold as firm and what as an interruptible nonfirm capacity in the emerging competitive electricity market this will perhaps be one of the crucial problems faced by the market participants this problem has not been discussed in the literature yet and is considered in this paper by calculating the optimal split between firm and interruptible atc using a dc load flow model and monte carlo optimization approach

a two tier matrix game approach for obtaining joint bidding strategies in ftr and energy markets transmission congestion results in revenue collected from the loads that often exceeds the payment made to the generators the financial transmission right ftr is an instrument that allows the independent system operator iso to redistribute the excess revenue congestion charge among the market participants generators and loads hold ftrs to hedge against congestion charges since the revenues from the ftr and energy markets are interdependent each generator and load must have a joint bidding strategy for ftr and energy markets to maximize its total payoff this paper presents a two tier matrix game model that allows the generators and loads to obtain joint bidding strategies the model also allows the isos and the market designers to assess the impact of various network configurations and rules on market performance e g market power the two tier model considers multiple participants multidimensional bid vectors network contingencies and varying demand we conducted a numerical validation of our model by analyzing the three node network studied by joskow and tirole 2000 additional numerical studies were conducted on a five node network to examine the impact of holding ftrs on the bidding strategies in the energy market and joint payoffs of the participants

framework for assessing the economic efficiencies of long run network pricing models this paper presents a framework for assessing the economic efficiency of different long run network pricing models the aim is to provide a quantifiable efficiency measure that will inform regulators network operators and network users when an alternative pricing model is contemplated the efficiency measure is derived from the long term network development costs that flow from a dynamic interaction between network pricing and planning that is the response of network users to differing charging models the consequential network investment and new financial incentives that follow reinforcement of the network to illustrate the approach the framework has been used to assess the relative efficiency of three broad class of distribution pricing models in a study undertaken for the great britain gb s regulator for gas and electricity markets in england wales and scotland ofgem the study contemplated three pricing models that are used in practice the efficiency assessment in the ofgem study was conducted on a pseudo distribution reference network on the assumption that the results from the reference network could be scaled up to the national level then the assessment suggests that by moving from the present drm model to the more economic lric approach gb distribution network operators could save in the region of pound200 m over the next 20 years in their network investment costs this paper draws heavily on the project undertaken for ofgem but any views expressed are solely those of the authors

transition to an electricity market a model for developing countries market oriented restructuring of the electricity supply industry esi in the west has led to a realization of the need for reform and competition in developing countries as well however there are fundamental differences between the two cases regarding the maturity of the esi structure economic priorities and the role of the state in development this paper therefore synthesizes a model of reform which is sensitive to these realities consequently the outlook is different from the prevailing tendency to simply transpose experience from elsewhere the core issue that we identify is the approach to the transmission system thailand since it is of medium size and reform oriented is used as the main reference point but short sections on sri lanka and china are included to widen the relevance of the discussion

combined pool bilateral dispatch part ii curtailment of firm and nonfirm contracts this paper deals with the dispatch of power networks under mixed pool bilateral trading the major questions that are examined are the following 1 to what degree does the relative level of pool versus bilateral trading influence performance in terms of individual power levels costs prices and revenues 2 what is the comparative performance of mixed trading with firm and nonfirm bilateral contracts under various curtailment strategies 3 is the revenue derived from the pool and bilateral trading consistent with the corresponding unbundled costs the above questions are sequentially addressed in separate parts of this three part paper the eventual goal of these results is to help generator and load serving entities choose appropriate relative levels of pool versus bilateral trades while considering risk economic performance and physical constraints in part ii two types of bilateral contracts firm and nonfirm are introduced together with their respective curtailment and noncurtailment bids the optimal power flow problem from part i is now modified to accommodate this new type of operation technical and economical performance measures defined in part i namely generation revenues from bilateral and pool sales pool demand payments plus generation and load expenditures to cover transmission loss and congestion management attributed to bilateral exchanges are also used here together with revenues from contract curtailment and expenditures due to noncurtailment bidding simulation results illustrate the effects of firm and nonfirm contracts and their bidding strategies on the relative levels of pool bilateral trading as well as on economic performance of market participants

market plurality and manipulation performance comparison of independent system operators in this paper the authors present three different models that represent the coordinating functions of existing independent system operators isos and discuss their advantages and disadvantages max iso is a centralized operator based on the pool model and min iso is a decentralized operator based on the bilateral model mix iso is positioned in between having multiple power exchanges or bilateral contracts the performance of the different isos is compared by the total social welfare and the vulnerability to market manipulation a numerical example is presented to compare the performance of different isos the max iso is considered to be the most efficient model theoretically but it does not necessarily provide the best market in terms of vulnerability to market manipulation

the economic dispatch with consideration of transmission service charge for a generation company summary form only given as follows this paper presents a novel economic dispatch strategy for a generation company which owns several units with different fuel costs efficiency and locations and has a bilateral contract with several large customers the proposed strategy not only considers the generation cost but also takes into account the wheeling charge for the use of the transmission system a modified megawatt mile method is proposed to calculate the wheeling cost in this paper finally the calculation result of economic dispatch for a generation company with two units and their loads in a real power system is demonstrated

solving the revenue reconciliation problem of distribution network providers using long term marginal prices in this paper the authors describe an integrated methodology to compute long term marginal prices in distribution networks long term marginal prices are considered the most interesting and economically sound way of allocating network costs to users additionally they inherently deal with the revenue reconciliation problem as they generally do not require other large supplementary tariff terms the proposed methodology uses fuzzy sets to model uncertainties in load forecasts and considers several criteria to guide the identification of solutions at the end there is a final decision making step to select the most adequate expansion plan according to the preferences of the decision maker

cost of transmission system usage based on an economic measure throughout today s unbundled power systems it is assumed that the transmission system is a natural monopoly and therefore it should be regulated to compensate for the revenue requirements of the owners of the transmission system and encourage its future expansion transmission pricing schemes should be designed fairly also the schemes must aim to achieve the objective of maintaining system security by encouraging proper operation and maintenance of existing and investment in new facilities in this paper based on a simple economic principle a novel method for allocation of the fixed cost of the transmission system to agents using these facilities is developed this new method introduces the concept of critical capacity of a line and considers congestion in the transmission system to allocate the share of the transmission system revenue requirement that each agent has to provide identifying and charging the agents who cause congestion is very important as it sends the correct economic signal to transmission network users this is a novel feature of this method thus making it most suitable for systems where congestion does occur we also point out briefly the reliability concerns of the new method a simple eight bus network representative of the pjm iso system together with its market pricing mechanism is used as a competitive power system to illustrate the main features of the proposed method

public debt and growth heterogeneity and non linearity we study the long run relationship between public debt and growth in a large panel of countries our analysis builds on theoretical arguments and data considerations in modelling the debt growth relationship as heterogeneous across countries we investigate the debt growth nexus adopting linear and non linear specifications employing novel methods and diagnostics from the time series literature adapted for use in the panel we find some support for a negative relationship between public debt and long run growth across countries but no evidence for a similar let alone common debt threshold within countries

a physical flow based approach to allocating transmission losses in a transaction framework a physical flow based approach to allocating transmission losses in a multiple transaction system is presented the allocation scheme is developed using a framework in which the transactions are explicitly represented the proposed scheme is based on expressing losses explicitly in terms of all the transactions in the system an important property of the allocation scheme is its effective capability to deal with counter flows that result in the presence of specific transactions extensive numerical testing indicates that the allocation scheme produces loss allocations that are appropriate and that behave in a physically reasonable manner test results on several systems are presented

transmission congestion and competition on power generation expansion generation expansion planning involves decisions on location and capacity of new generation which may lead to adding or relieving congestion in transmission lines and to increasing or reducing competition in deregulated markets generation expansion may encounter congestion in the transmission network by constrained single line flows as well as flowgate transfer capabilities in this paper a model to study the interaction between competition and transmission congestion on power generation expansion is proposed the generation expansion problem is modeled as a cournot competition game network transmission constraints are included in the optimal generation expansion problem to comply with power flow limits results from a five bus power network and the ieee 24 bus system are presented and discussed

transmission loss allocation i single energy market this paper presents a new methodology for allocating transmission losses to the participants of a single energy market the proposed approach is based on the incremental transmission loss concept and is implemented through two models basic and extended in the basic model the total system losses are estimated through the linear dc load flow equations while the extended model uses the exact ac formulation the concept of center of losses is used a fictitious bus in the system network where all transactions are compensated for transmission losses both models provide a sharing of transmission losses among generators and loads based on a predefined proportion for instance 50 50 for each participant class some important aspects related with the allocation fairness and transparency are illustrated by numerical applications with the ieee reliability test system the extension of this methodology to interconnected energy markets is treated in a companion paper

economic inefficiencies and cross subsidies in an auction based electricity pool this paper compares two contrasting yet often used electricity market clearing procedures i an auction based algorithm including congestion management and transmission loss cost allocation and ii an optimal power flow the auction procedure produces a single period unit commitment and hence can be compared directly to an optimal power flow solution these algorithms are compared in terms of the economic efficiency of the solution attained and in terms of cross subsidies among generators and demands the purpose of this comparison is to quantify the actual cost to market participants of using a simple seemingly transparent procedure such as an auction based algorithm versus an integrated but computationally intensive one such as an optimal power flow

a new methodology for cost allocation of transmission systems in interconnected energy markets this paper presents a new methodology for allocating transmission system costs in single or interconnected energy markets initially the proposed method allows the decomposition of the total transmission cost into two components the first corresponds to the utilized network capacity estimated at a specified operating condition and the second refers to the transmission capacity available but not used in the system a technique for decomposing nodal tariffs per subsystem guarantees the applicability of the method to interconnected markets from the proposed procedure it is possible to determine the responsibility of each participant or group of participants in the use of any specified set of transmission elements the flexibility of this method allows the establishment of criteria based on economic and technical aspects for cost allocation of internal circuits of each subsystem as well as of the tie elements between the subsystems important characteristics of the proposed methodology such as transparency impartiality and flexibility are analyzed and illustrated based on numerical applications with the ieee reliability test system experience with the brazilian transmission network is also discussed