Abstract: In this paper a new approach for transmission pricing
is presented. The main idea is voltage angle allocation, i.e.
determining the contribution of each contract on the voltage angle of
each bus. DC power flow is used to compute a primary solution for
angle decomposition. To consider the impacts of system non-linearity
on angle decomposition, the primary solution is corrected in different
iterations of decoupled Newton-Raphson power flow. Then, the
contribution of each contract on power flow of each transmission line
is computed based on angle decomposition. Contract-related flows
are used as a measure for “extent of use" of transmission network
capacity and consequently transmission pricing. The presented
approach is applied to a 4-bus test system and IEEE 30-bus test
system.