Wheeling (electric power transmission)

In electric power transmission, wheeling is the transmission of power from one system to another through the third-party interconnecting network. The wheeling provider, or utility, receives compensation for the service and for electricity losses incurred in the transmission. As an economic concept, wheeling combines the traits of opposing designs of the electricity market: as a regulated public utility and a competitive market.

Two types of wheeling are:

  • wheel-through, where the electrical power generation and the electrical load are both outside the boundaries of the transmission system
  • wheel-out, where the generation resource is inside the boundaries of the transmission system but the load is outside.

Wheeling often refers to the scheduling of the energy transfer from one balancing authority to another. The wheeling of electric energy requires use of a transmission system, often with an associated fee that goes to the transmission owners.

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