Allocation of available transfer capability in planning horizon

In the United States electricity market standard, when several transmission service requests (TSRs) are made for a specific pair of power injection/extraction points, the independent system operator (ISO) must allocate the available transmission capability (ATC) associated with the pair to the requests. An ATC allocation must determine the amount of accepted requests as well as the priority of the accepted requests during emergencies. The requests could have different types (recallable/non‐recallable), tariffs, and time frames and these factors must be properly considered in ATC allocation. This paper proposes a method for optimal ATC allocation in the planning horizon which incorporates the type and tariffs of the requests in a mixed integer linear optimization programming for which the expected net revenue of ATC allocation on a seasonal base has to be maximized. The method also incorporates maintenance and forced outage of power system components as well as the load forecast uncertainty in ATC allocation problem. Once allocation accomplished by solving the optimization problem, the amount of the accepted requests and their priorities to the power system operator during emergencies are determined. The proposed method is applied to the modified IEEE reliability test system (IEEE‐RTS) and its performance is evaluated. A comparison is made between the results obtained by the proposed method and those obtained using existing ATC allocation methods. Two approaches are finally presented and evaluated to apply the proposed method for allocating ATC to the requests with a yearly base. Copyright © 2010 John Wiley & Sons, Ltd.