The objective of this paper is to allocate transmission congestion cost to responsible generators using a novel method. Deregulation of the electrical power system leads to the compulsion of open access to the transmission system for all entities of the power system. There is a trend to utilize cheaper generators by all loads. This leads to a violation of the operational and physical constraints of transmission corridors connected to those generators. It is not possible to utilize cheaper

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... tors all the time due to the operational and physical constraints of the transmission lines. Hence there is an increase in the cost of energy produced. This increase in energy cost is taken into account as total congestion cost. Allocation of total congestion costs among various entities is always a complex task. Here, generators liable for the increase in total congestion cost identified using Bialek's algorithm. Bialek's upstream algorithm was applied to allocate congestion costs to generators. Results are obtained on IEEE-14 bus and IEEE-30 bus standard test systems.