February 4, 2005
All rights reserved to Shmuel Oren, UC Berkeley
PSERC
The
case for socialization of congestion
relief cost
location 1
Net Supply
location 2
Net Demand
Export supply function
at location 1
Avoided cost function
at location 2
Price
Quantity
Congestion
Relief
payment
Shadow price
On line
LMP at 2
LMP at 1
Scheduled
flow
Congestion
social cost
Constrained
flow
Congestion
relief cost
Congestion
rent