Abstract: Before deregulation there was only single entity to generate and distribute electricity in an area. Due to this monopoly, the price of electricity was on the higher side and also the quality of electricity was not satisfactory. This scenario changes after the deregulation of power industry. The competition arises in generation and distribution. But the transmission corridor remains the same for transferring the power. Every operator wants to maximize their profit. Due to this the number of transactions increases. This may cause congestion in transmission network. To avoid congestion, every operator should know the value of ATC before every transaction. The aim of this paper is to develop an Optimal Power Flow based approach to analyse electrical Transfer capability using Power Transfer Distribution Factor. Also Available Transfer Capability Based Transmission Pricing is evaluated. The above said methodology is applied on IEEE 30 bus system.

Keywords: Optimal Power flow, Transmission Pricing, Deregulation, Available Transfer capability.