9501646 Gedra The objectives of the research are to include the effects of various typed of system security into power system pricing. Another objective of the research is to evaluate a particular transmission pricing methodology which has been proposed recently. These are very important issues in the wake of the 1992 National Energy Policy Act (NEPA) which, among other things, deregulates generation and requires open access to the transmission. The utility industry will become increasingly competitive as a result of the Act, and systems are expected to be increasingly stressed. Some fear that, in a competitive environment, system security will be neglected. It is important to include security in the pricing of electricity to encourage security resources to be availa`le at the right location when they are needed to encourage users to facilitate rather than hinder system security. At the same time, proper security pricing will help to prevent unneeded or inefficient expenditures to increase security, thus jeopardizing a utility's competitive position. Proper transmission pricing is also essential to the efficient functioning of the newly competitive market in generation. ***
