Transport Pricing of Electricity Networks

This text provides a methodological and practical transmission tariff guide for those who are involved in the electricity business as managers, engineers, lawyers, economists, regulators or policy-makers, but who are not specialists in electricity transport, nor in tariff-setting for public utilities. It offers a synthesis of economic research on the subject. The volume is divided into three major parts, each presenting a general aspect of transmission pricing: its legal and accounting background, its basic theory, and its implementation, successively. How much does it cost to transmit electricity from a nuclear plant close to Lyon in France, to a car manufacturer located in Stuttgart in Germany? What price should a system operator in Canada charge a pulp and paper mill that uses the high-voltage grid for only a few weeks per year? Where in California is it more profitable to reinforce or build a new transmission line? What is the best place to locate a power gas station in England, in order to pay the lowest transmission cost? Such questions are novel and crucial for American and European liberalized electricity markets.