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.
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Often attributed to Groucho Marx, but earlier from Charles Dudley Warner, Hartford Courant, Editorial, August 24, 1897.
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Hogan, W.W. Contract networks for electric power transmission. J Regul Econ 4, 211–242 (1992). https://doi.org/10.1007/BF00133621
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DOI: https://doi.org/10.1007/BF00133621