Improving of Transmission Cost Allocation Method to Accelerate the Investment Recovery for Transmission lines in Deregulated Power System

In the electricity supply industry are more important transparency and accountability on all participants in the grid with considered transmission usage on the load. In the restructuring and deregulation of the power system, many problems are faced by the power industry players especially with investment in transmission costs. To accelerate investment recovery in transmission lines, it is important to have a way of increasing the income for investment recovery based on an analysis of construction costs in the long run and an analysis of the high level of risk involved in the investment. This paper will propose a new algorithm for allocating the transmission pricing that considers the power factor correction coefficient (CLF) as an incentive factor to determine transmission cost. To justify this proposal, the MW-Mile method improved will be compared with an existing method to determine each line of users for two case studies; the sixth test bus and the 30 IEEE bus system. The result of the proposal shows that the transmission operator will get an additional charge when the load do not use the transmission effectively. The transmission owner can make a further profit by increasing more energy transfer and also from the generator to load. It also indicates the positive signal with an incentive investment in transmission lines operation in deregulated power system.