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In India, apart from state owned generators, a central sector power pool has been created consisting of central sector power stations. The Central Transmission Utility (CTU) has built an EHV network to transfer this power to the constituents of the regional network. To recover the costs incurred, the CTU levies the Transmission Service Charges (TSC) over the constituents. The constituents are billed for network usage charges which are proportional to their allocated share in the central sector power generation. An ideal pricing mechanism would have been to find out the usage of the network by the constituents and charge accordingly. In this paper, a real power tracing based method for recovery of Transmission Service Charge (TSC) from the constituents of Western regional grid in India is proposed. The method uses proportionality based real power tracing to find out the network usage by various constituents. Loss allocation on EHV network to the various constituents is also done. Actual data of power flows over the EHV network of Western regional grid for one day is considered.

INDIA IS ONE OF THE LARGEST COUNTRIES IN THE WORLD, WITH A GEOGRAPHICAL area covering 3 million km 2 and teeming with a population of over 1 billion. The economic growth of a nation calls for a matching rate of growth in infrastructural facilities. The growth rate of the demand for power in developing countries is generally higher than that of the gross domestic product (GDP). The elasticity ratio for the growth rate in demand of power over that of GDP is about 1.5 for India. In order to support a reasonable rate of growth of GDP, around 7% per annum, the growth rate of power supply needs to be more than 10% annually. The government of India (GOI) has emphasized infrastructure development, with top priority given to the power sector. Being a developing country, the per capita consumption of electricity in India is on the order of 582 kWh (and projected to be 1,000 kWh by the year 2012) as compared to more than 5,000 kWh in developed countries. However, it has taken rapid strides in power development despite high poverty levels. During the 1960s and 1970s, the growth rates of electricity consumption were 11.6% and 12.2%, whereas in the 1980s and 1990s, the growth rates were 6.5-7.4%. The estimated future

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Abstract-That regional interconnections can benefit interconnected grids is accepted by the decision makers owing to optimal utilization of resources, diversity of load patterns, increased security and improved system performance. However, there are "oportunities and threats" depending on how commercial, operational and security issues are tackled. The threats stem from potential seaming problems in the integration and lack of adequate defense mechanisms. In India, five large sized regional grids operate and these are interconnected either synchronously or asynchronously. The operating strategies for interconnections have evolved through trial operations on exiting system which are covered in this paper. The paper overviews the salient features of all the regional interconnections in India. The commercial mechanism, Availability Based Tariff (ABT), adopted by India has facilitated seamless integration on commercial front to a good extent as described in this paper. ABT links part of tariff with a universally available signal of system frequency. From experience gained over last few years, the operational and security issues have been discussed. With Open Access in operation, the interconnecting corridors have to play a significant role in the operation of the interconnected system. The need for evolving standards for the integrated operation became evident from the experience. The guiding principles for such standardization are also reported in this paper.

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Abstract-Amongst the commonly employed transmission pricing philosophies in the de-centralized markets, i.e., pointto-point and point-of-connection (POC), the later one can be employed for both power exchange (PX) and bilateral trades.

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