Pricing and control in the next generation power distribution system

Gerald Thomas Heydt, Badrul H. Chowdhury, Mariesa L. Crow, Daniel Haughton, Brian D. Kiefer, Fanjun Meng, Bharadwaj R. Sathyanarayana

Research output: Contribution to journalArticlepeer-review

89 Scopus citations


Smart grid technologies are gaining acceptance and are being integrated into power distribution systems as a result of public and private investment and funding. However, costs of these technologies appear to be a clear obstacle in the widespread integration and maximal use of these technologies. In this paper, the utilization of dollar pricing signals is proposed and illustrated for power distribution engineering. A signal modeled after locational marginal pricing from transmission engineering is proposed to provide pricing data locally in distribution systems. The calculation, utilization, advantages, and shortcomings of the concept are presented. A main conclusion is that the use of a distribution locational marginal price signal fits well with an electronically controlled power distribution system.

Original languageEnglish (US)
Article number6182597
Pages (from-to)907-914
Number of pages8
JournalIEEE Transactions on Smart Grid
Issue number2
StatePublished - 2012


  • Direct digital control
  • distributed control
  • distributed resources
  • distribution engineering
  • locational marginal prices
  • power system control
  • solid state controllers
  • state estimation

ASJC Scopus subject areas

  • Computer Science(all)


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