Application of integrative pricing method in transmission pricing

The transmission pricing method is studied and the transmission network costs are analyzed,which is sorted into two types:fixed cost and variable cost. The integrative pricing method for transmission network is presented. It uses the embedded cost pricing method to allocate the fixed costs according to the maximum demands while uses the marginal cost pricing method to allocate the variable costs according to spot prices. The transmission price model is built by the effective integration of the two methods,which is called the nodal price model based on integrative pricing method. It can be applied to spot price,time-of-use price,day-ahead market price and future contract electricity price. An example is given to demonstrate its applications.