Abstract
This paper proposes a practical unit commitment method, which is able to evaluate transmission network operation in terms of an economic perspective. We wish to consider the unit commitment problems: a power generation cost minimization problem, a profit maximization problem for a power producer, and a social cost minimization problem. The power producer's profits are equal to income by produced power minus production cost. The social costs are equal to production cost plus payment by customers. The power transaction prices in the power system are decided by short-run marginal cost theory. Also, this theory is able to transform the reliability of the network into economic value.
