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ISOs and Transcos: What's at Stake?

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Abstract

The two alternative forms of regional transmission organizations represent fundamentally different approaches. Generally, a transco will create more fertile ground for product and price differentiation and competition, while ISOs will tend to uniform access charges and special rules and markets for addressing competition.

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... Este método distorsiona las señales de operación, ya que es erróneo suponer que la electricidad fluye por un camino definido [25]; pueden dar ingresos adicionales para las empresas cuya infraestructura fue usada realmente y pérdidas para las empresas que experimentaron costos adicionales por congestión o por pérdida de oportunidad de negocio [26]. Igualmente, distorsiona las señales de inversión en transmisión porque no incluye el costo de la congestión y porque los caminos contratados artificiales limitan la recuperación de costos [19], [21]. ...
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In this paper, we analyze the main schemes for pricing electricity transmission. First, we present a comparison of the performance of pricing schemes using criteria from the Energy Modeling Forum. And second, we discuss a classification of the performance of mechanisms in different market structures. Our analysis shows the importance of considering the market structure and design when designing pricing mechanisms for transmission services.
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