Abstract

This paper analyses several common transmission pricing methods of marginal cost and embedded cost deeply. It analyses pricing models of several transmission pricing methods, long-run marginal cost (LRMC) method, MW-Mile method, sensitivity method, flow tracing method, contract path method and stamp method. It also gives a comprehensive comparison of characteristics and limitations of these pricing methods, discusses their applicable conditions in aspects of fairness, economic, financial balance, transparency, operability and others, and makes a quantitative research of comparison based on a case, and verifies the results.

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