Background: This paper investigates the impacts of uncertainties on flow-gate marginal
pricing (FMP) as an efficient tool for analyzing financial transmission rights (FTR) in deregulated
Methods: The proposed method provides a mathematical formulation for optimal power flow (OPF)
and FMP is defined through OPF. Several parameters in electric power systems are modeled as
probability distribution function (PDF) and Monte-Carlo simulation (MCS) is utilized to cope with the
uncertainties. In order to indicate the priority of the parameters on FMP, sensitivity analysis is carried
out and the priority list is derived.
Conclusion: Many analyses and assessments demonstrate that network uncertainty makes great impacts
on FMP and it is inevitable to include such uncertainties in FMP calculations. Results also emphasize
the major effects of FMP in electric power systems under deregulated environments.