Transmission cost allocation based on the users' benefits

This paper, focusing on transmission cost allocation in an economic way that is based on “users' benefits”. This method is according to transmission value and direct beneficiaries of transmission which are indirectly related to transmission physical usage. The beneficiaries of each transmission facility are determined for each market participant (consumer and/or producer) by calculating its revenues with and without the facility. The proposed algorithm is applied to a 3-bus and 24-bus IEEE test system and their results are compared to popular Bialek's tracing method.