A R Eliability Based a Pproach for O Ptimal T Ransmission U Sage and L Oss a Llocation

Restructuring of Electricity supply industry introduced many concerns such as transmission pricing, transmission loss allocation and congestion management. Several methodologies and algorithms were proposed for addressing these issues. In this paper, a power flow tracing based method is proposed, which involves Matrices methodology for the transmission usage and loss allocation for generators and demands. After usage and loss allocation, its cost is allocated to generators and loads. This method provides loss allocation in a direct way because all the computation was previously done for usage allocation. Further transmission reliability margin allocation is done under normal and contingency condition. An N-1 reliability criterion is considered for contingency analysis. After usage and loss allocation, cooperative game theory is applied for finding efficient economic signals. Nucleolus and Shapely value approach is used for optimal allocation of results. Results are shown for the sample 6 bus and IEEE 14 bus system. A comparison is also done with other existing methods.