In the traditional power system dispatching, power transmission and distribution are managed together, and there is no need to calculate every party's cost of losses. With the development of power system and power market, it is possible that power transmission and distribution are separated from each other. This will cause that Loss Model cannot reflect each party's cost distribution. Economic dispatching instead of traditional dispatching can solve the problem. The cost of Power transmission losses contains two aspects:physical and economic. Power dependency theory satisfies Law of Conservation of Energy and Ohm's Law. The conservation of power transmission cost can guarantee the balance of profit and loss. Thus the methods above can ensure that cost calculation method is objective. Finally the simulation using GA based on power dependency and cost conservation verifies the methods' correctness. And it supplies a theoretical basis for the loss calculation.
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