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Journal of Regulatory Economics

, Volume 4, Issue 3, pp 211–242 | Cite as

Contract networks for electric power transmission

  • William W. Hogan
Article

Abstract

A contract network extends the concept of a contract path to address the problem of loop flow and congestion in electric power transmission systems. A contract network option provides an internally consistent framework for assigning long-term capacity rights to a complicated electric transmission network. The contract network respects the special conditions induced by Kirchoff's Laws; accommodates thermal, voltage, and contingency constraints on transmission capacity; and can be adopted without disturbing existing methods for achieving an economic power dispatch subject to these constraints. By design, a contract network would maintain short-run efficiency through optimal spot-price determination of transmission prices. Through payment of congestion rentals, the contract network makes a long-term capacity-right holder indifferent between delivery of the power or receipt of payments in a settlement system. to]Everybody talks about the weather, but nobody does anything about it.

Keywords

Transmission System Industrial Organization Network Option Economic Power Transmission Network 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1992

Authors and Affiliations

  • William W. Hogan
    • 1
  1. 1.Harvard University John F. Kennedy School of GovernmentCambridgeUSA

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