This paper presents a case study on transmission pricing practices. Now a days, restructuring of the power system market through deregulation is gaining attention as technical and economical benefits at generator and user. In India, after the Electricity Act 2003, restructuring has been introduced in the Indian power system market. Researchers are continuously working towards improvement of deregulation based on restructuring to improve transmission pricing practices and calculations in a better way. Therefore, this paper presents an overview of MW- Mile and postage stamp methods to estimate the transmission cost. Further, the North Indian practical power system of 37 bus test system has been analyzed by reverse, absolute and dominant Mw-Mile methods. The results obtained to be expected for deregulated power market.
Competitive trend towards restructuring and unbundling of transmission services has resulted in the need renteto discover the impact of a particular generator to load. This paper initially presents the analysis of three diff reactive power valuation methods namely, Modified Y bus , Virtual flow approach and Modified Power flow tracing to compute the reactive power output from a particular generator to particular load. Among these methods, the modified power flow electricity tracing method is identified as the best because of its various features. Secondly, based on this Method, the opportunity cost for practical system is determined. Hence, this method can be useful in providing additional insight into power system operation and can be used to modify existing tariffs of charging for reactive power transmission loss and reactive power transmission services. Simulation and comparison results are shown by taking IEEE 30 bus system as test system.