MW-Mile method considering the cost of loss allocation for transmission pricing

Since the evolution of MW-Mile method there have been so many new methods for transmission pricing were developed but still it is been used in most of the places throughout world because of its simplicity. However this method does not provide fair pricing for the users since it is lacking in the provision of cost component for loss and power factor. This paper tries to provide a mathematical model so that the cost component of loss and power factor can be added in the transmission pricing.