Transmission reliability cost allocation method based on market participants' reliability contribution factors

Due to the complex and integrated nature of power systems, failures in any part of the system can cause interruptions which range from inconveniencing a small number of local residents to a widespread catastrophic disruption of supply. For this reason, the transmission reliability margin must be provided for the system to be operated at all times in such a way that the system will not be left in a dangerous condition even though unpredictable events occur. In this paper, Kirschen's tracing method is employed to find the usage contributions of individual generators to the line flows under normal conditions. Apparently, it seems plausible to compute the reliability contributions of all market participants based on the probabilistic approach which takes notice of the forced outage rate for each transmission line as well as the line outage impact factor and then to allocate the transmission reliability cost among all the system users in proportion to their “extent of use” of reliability reserves in transmission facilities.