Abstract
This paper presents a new method for analyzing inter-utility transactions in restructured power systems. Transactions among independent utilities are defined on the basis of price in order to maximize the benefits of interconnection. Each generator in the power system offers a price to change its generation level. The objective function is defined as the minimization of the total expenditure to supply the system's load. The basic formulation and some of the possible extensions of the proposed method are presented in the paper. A modified IEEE 30 bus system is used for comparing the proposed method with more traditional techniques in an interconnected system.