"The electricity system can be divided into power generation, transmission and distribution
subsystems from the structure point of view. Electricity business is positioned
as a public business and regulated by pricing and quantities due to the high publicly
utilization. The power transmission system is responsible for power transmission from
power generation plants to the areas of power utilization. Since there is the characteristic
that electricity needs to produce and sell with immediate and instant balance, it is required
to construct the complete power transmission network in charge of the power dispatching
in order to provide stable electricity. The price of purchases and sales is closely related with
the necessity of power supply and demand. The purpose of this paper is to introduce the
optimization model of power supply and demand in the independent power transmission
network for the maximization of consumer and producer's surplus in the liberalization of
electricity business.We apply this model to discussing the relationships of electricity quantity
and price of purchases and sales. In addition, the sensitive analysis is introduced as well.
We conclude that the maximal pro t of power transmission network will be decreased when
quantity of power utilization, cost of power generation and maintenance cost of transmission
network are increasing. Instead, the maximal pro t of power transmission network will be
increased when power transmission rate is increasing."
