Congestion management is a common issue in power system and becomes more challenging task in competitive electricity market. Power lines are often loaded beyond their thermal limits in order to satisfy the increased demand. With increase in demand the unplanned power exchange takes place between producers and consumers. In the deregulated electricity market, Independent System Operator (ISO) is the one responsible for keeping track of various transactions taking place between various entities. The ISO is an entity entrusted with the responsible of ensuring the reliability and security of the entire system. Therefore Congestion Management and Demand Side Response are very necessary in this context. The economical benefit comes from reducing the line losses. This is because the energy usually has to travel a considerable distance from power plants to customers. These two concepts contribute in relieving heavily loaded lines and reducing losses. Demand Side Management (DSM) provides an excellent reliability resource for the most critical reliability needs. The graph theory shortest path algorithm finds more suitable to identifying the shortest path power flow and determination of Available Transfer Capacity (ATC) in the lines avoids unnecessary loading the lines to avoid the congestion in the power network.
