The Application of Linear Programming to the Determination of Transmission Fees in an Electrical Power Network

Oddmund Aarvik and Paul Randolph
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Oddmund Aarvik: Samkjøringen av Kraftverkene i Norge, Oslo, Norway
Paul Randolph: Iowa State University, Ames, Iowa and The University of Oslo, Oslo, Norway

Interfaces, 1975, vol. 6, issue 1, 47-49

Abstract: This article demonstrates how the transportation method of linear programming was used to solve a practical accounting problem in the electrical power industry of Norway, namely, the determination of transmission costs as a function of the product of megawatts times the distance in kilometers for each subscriber in the electrical network. It a subscriber has several points where power is fed into the system or taken out of the system, contract requirements specify that he shall pay for a transmission configuration which gives the lowest sum of the transmission quantities. The transportation algorithm is used to solve this minimization problem.

Date: 1975
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:6:y:1975:i:1:p:47-49

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