Due to electrical power restructuring, a dramatic change has been made to the generation and transmission sectors of the power industry. Rules and legislation are continuously changing. To promote more competition, transmission has to be expanded or upgraded to remove congestion and market power. The cost allocation of new investment in transmission has to be recalculated. The socialization methods of the past have been shown to be unfair to some market and network participants. The decentralization of cost allocation must be considered. The proposed paper provides a comparison between traditional cost allocation methods and a new cost allocation method based on agent-based game theory. A multigenerator/bus system will be used to compare the cost allocation methods.

Meeting Name

2004 International Conference on Probabilistic Methods Applied to Power Systems


Engineering Management and Systems Engineering

Second Department

Electrical and Computer Engineering

Keywords and Phrases

Agent-Based Game Theory; Cost Allocation; Costing; Game Theory; Generation Sectors; Investment; Multigenerator-Bus System; Power Generation Economics; Power Industry; Power Market; Power Markets; Power System Deregulation; Power Transmission Economics; Socialization Method; Transmission Investment; Transmission Sectors

Document Type

Article - Conference proceedings

Document Version

Final Version

File Type





© 2004 Institute of Electrical and Electronics Engineers (IEEE), All rights reserved.