February 4, 2005
All rights reserved to Shmuel Oren, UC Berkeley
PSERC
Objectives
of Congestion Pricing
nProvide incentives to generators to account for transmission constraints in their schedules by direct assignment of congestion cost.
nProvide price signals for efficient redispatch due to transmission constraints
nCreate price signals for efficient use of the transmission system
nCreate price signals for transmission upgrades
nPrevent gaming due to misallocation of constraints cost