Calculation of optimal interruptible tariff
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An optimal power flow based framework is proposed to determine the incentive rates of an interruptible tariff mechanism (ITM) on an hour-to-hour basis. Interaction between the utility and customers contracting interruptible load is incorporated in the analytical framework by formulating customer response functions to the ITM. It is shown that ITM is able to reduce costs and aid in system operation during peak load periods. The IEEE 30-Bus system, considerably modified to represent different customer characteristics, has been used for the study
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