Abstract: This paper presents a new algorithm to the problem of allocating the cost of the transmission network to generators and demands. A physically-based network usage procedure is based on circuit theory which exhibits a desirable proximity effect according to the underlying electric laws used to derive them. This procedure gives desirable apportioning properties and is easy to implement and understand. A case study based on the 4-bus system is used to illustrate the working of the proposed technique. Some relevant conclusions are finally drawn. Keywords:- Deregulation, Network usage
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