Determining the optimal transmission system usage contracts for a distribution company

Anderson R. De Queiroz, Luana M M Lima, David P. Morton, José W M Lima

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations


Improvements in transmission and distribution networks can be noticed in most countries that had their system architecture changed by the deregulation process. In this new environment one of the biggest challenges is the transmission and distribution open access. In Brazil, the National Electricity Regulatory Agency has established that the monthly amount of transmission system usage contracted by a distribution company (DISCO) should be informed per connection point (one value for each point) between transmission and distribution network. The usage of the transmission assets are represented by the power flowing from the transmission system to the DISCO network. This implies in monthly charges at each border transformer (which represents a connection point) that the DISCO must pay to honor the contracts. If the DISCO exceeds the contract values by certain percentage, monetary penalties are incurred. The penalty costs can lead the DISCO to a more conservatory behavior at the time that the usage contracts are settled. On the other hand if the DISCO expects a low trend of its demand it has the possibility to contract less and save money. Determining the optimum amount to contract is a stochastic optimization problem because of future load uncertainties. This paper provides model formulations for the Transmission System Usage Problem with a real case study.

Original languageEnglish (US)
Title of host publicationIEEE PES General Meeting, PES 2010
StatePublished - Dec 6 2010
EventIEEE PES General Meeting, PES 2010 - Minneapolis, MN, United States
Duration: Jul 25 2010Jul 29 2010

Publication series

NameIEEE PES General Meeting, PES 2010


OtherIEEE PES General Meeting, PES 2010
Country/TerritoryUnited States
CityMinneapolis, MN


  • Cluster analysis
  • Mixed integer programming
  • Stochastic programming
  • Transmission system usage

ASJC Scopus subject areas

  • Energy Engineering and Power Technology


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