ABSTRACT
In an electricity market, it is important for certain common expenses such as transmission and unit start-up costs to be fairly allocated to all market members. To solve these problems, we have to upgrade our mathematical tools. In this chapter, some cooperative game methods are introduced and recommended. Transmission costs and unit start-up costs are introduced and mathematical solutions for allocations are provided. We also study the problem of peaking cost allocation. The concept of transmission rights is also introduced as a method to allocate congestion surplus.
