[1][2][3] The wheeling provider, or utility, receives compensation for the service and for electricity losses incurred in the transmission.
To recover capital costs, operating costs and earn a return on investment, a transmission revenue requirement (TRR) is established and approved by a national agency (such as the US Federal Energy Regulatory Commission) for each transmission owner.
When wheeling-through, the transmission access charge only applies to the exported amount.
A wheeling charge is a currency per megawatt-hour amount that a transmission owner receives for the use of its system to export energy.
The total amount due in TAC fees is determined by the following equation:
However, Arizona would not set the fee too high, as this could impact the advantages of trading electric energy between systems.