Allocation of Fixed Cost based on New and Fair Method in Radial Distribution Network with Distribution Network

In this paper, the combined and new methods in distribution network with distributed generation are introduced to allocate fixed cost fairly that is applicable for radial network. Allocation of fixed cost based MW-mile is not fairer method. Fixed cost allocated based on average or peak consumed power using MW-mile that is not fairer method. It is essential to a new method introduced. Unfair pricing under a power profile conditions is shown. Distributed generation (DG) resources can provide benefits to distribution and transmission networks and receive a reward charge. Allocation of DG reward must be fairly. Allocation of DG reward can be based on power loss reduction of loads therefore a new method is introduced and tested on 8-bus distribution network.