In response to the novel requirements that competitive power markets place upon
transmission planning, a method for assessing the economic benefits of transmission
reinforcements is proposed for California. Economic benefits considered include reductions
in the cost of constructing and operating power plants, along with mitigation of market power
by improving supplier access to markets. The methodology has five key principles:
consideration of multiple perspectives (consumers, generators, transmission operators, and …

In response to the novel requirements that restructured power markets place upon
transmission planning, a method for assessing the economic benefits of transmission
upgrades has been adopted by the California Independent System Operator (CAISO).
Economic effects considered include reductions in the cost of constructing and operating
power plants along with changes in market prices. The methodology accounts for how
transmission upgrades mitigate market power by increasing the size of a supplier's …