This thesis examines and compares different methods of collecting transmission revenue in a lossless, Pool-based power network. By running the optimum power flow (OPF) dispatch, the merchandising surplus (MS) calculated goes toward meeting transmission revenue. However, in a lossless network, the MS is always zero unless some lines are congested. Therefore, other ways to collect the required network revenue must be thought of. This thesis examines three classical network pricing approaches: the Postage Stamp (PS), the MegaWatt Mile (MWM), and the Flow-Based (FB) methods. These are simple to implement but suffer from drawbacks such as potential negative generator profits. This thesis further examines a new type of network pricing introduced by the author that is based on the notion of network and generator disincentives. Finally, a numerical study is made to compare the advantages and disadvantages of all the aforementioned methods.

Galiana, Francisco D. (Supervisor)