Masters Theses


Xiaolong Wang

Keywords and Phrases

Allocation; Electricity market; Locational marginal prices; Marginal loss; Marginal loss surplus


"The marginal transmission loss model is used in electricity markets across the United States to measure a resource's marginal contribution to system loss. This model prices loss into the locational marginal price as a marginal loss component. Marginal loss pricing will render a net revenue surplus within an energy balanced system. This marginal loss surplus (MLS) is typically allocated back to scheduling coordinators in proportion to the measured demand on a system-wide basis. However, when the system experiences heterogeneous loss across different regions, the system-wide allocation method fails to recognize the regional differences in actual loss costs. As a result, it may create subsidies between regions. This thesis proposes a conforming regional allocation method to extend the allocation method from system-wide to regions. A non-conforming regional allocation method was used to compare with the conforming regional allocation on the impact of MLS allocation in different regions. This study demonstrates that the proposed method precisely conforms to the system-wide allocation method within each region. More specifically, this study computes the MLS contribution of each region based on the conforming regional allocation method, it then compares with each region's MLS based on a system-wide allocation method. This study found that the proposed conforming regional allocation method does provide fair allocation across different regions and can thus be applied across United States' electricity markets."--Abstract, page iii.


Crow, Mariesa

Committee Member(s)

Ferdowsi, Mehdi,
Kimball, Jonathan W.


Electrical and Computer Engineering

Degree Name

M.S. in Electrical Engineering


Missouri University of Science and Technology

Publication Date

Summer 2013


x, 73 pages

Note about bibliography

Includes bibliographical references (pages 70-72).


© 2013 Xiaolong Wang, All rights reserved.

Document Type

Thesis - Open Access

File Type




Subject Headings

Electric utilities -- United States
Power resources -- Finance -- Mathematical models

Thesis Number

T 10635

Electronic OCLC #