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International Conference on Information, Electronic and Computer Science (ICIECS 2010 E-BOOK)

Zibo,China,11.26-11.28,2010

ISBN: 978-1-935068-42-6 Scientific Research Publishing, USA

E-Book 2224pp Pub. Date: November 2010

Category: Computer Science & Communications

Price: $360

Title: A New Method for Calculating Congestion Costs under the Pool System
Source: International Conference on Information, Electronic and Computer Science (ICIECS 2010 E-BOOK) (pp 837-839)
Author(s): Mingyu Wang, School of Information，Xi’an University of Finance and Economics，Xi’an, China
Abstract: Calculating congestion costs is one of the two main problems in congestion pricing. The calculating methods of congestion costs are highly dependent on the transaction modes. In this paper, after a brief overview of two existing methods for calculating congestion costs under the pool system, we introduce a new function, namely the satisfaction degree function, to show how an electricity supplier is satisfied with a power flow solution. Under the criteria of keeping the satisfaction degree of all suppliers no decreasing, we propose a new method for calculating the congestion costs. The method comes from a very simple mathematical reasoning and has clear economic meaning. Simple analysis shows that our new method avoids some disadvantages of the existing methods, and moreover, the congestion cost due to our method is no greater than that due to the existing ones. This merit of the new method is advantageous to cut off the costs of the electricity customers.
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