Abstract:In deregulated power systems, the transmission loss allocation plays a key role in planning and designing of the power system. In practice, these losses should be allocated to both generators and loads depending on the amount of contribution in the total power system losses. In this paper, a new methodology to optimally allocate the transmission losses to either generators or loads based on the power flow tracing methodology is presented. In this methodology, trace usage coefficients are formulated to allocate transmission losses. In real time, system operator tries to minimize the transmission losses to increase the security of the system. In this paper, for the sack of analysis, the formulated OPF problem with transmission losses as objective is solved while satisfying system constraints using gravitational search algorithm. The minimized transmission losses are then allocated to either generators or loads. The proposed methodology is tested on standard IEEE-30 bus and real time Indian-24 bus test systems with supporting numerical results.