Wheeling will greatly increase the loss of the middle grid which offers channel forthe wheeling. How to allocation the loss to those relative grids affects the economicbenefit of each market member. There are many arguments about the existing lossallocation methods because of their different theory basic and calculating result. In this paper, it introduced some loss allocation methods and their application ininternal and overseas power markets,compared their theory and adaptability to differenttrading models. Considering that the flow tracing method based on graph theory can'tsolve the problem of loop flow, this paper proposed a method based on bus-line incidentmatrix to detect if there is loop flow in the grid and a method combining graph theorywith linear equations to calculate those nodal losses involved in loop flow, an exampleproved its validity; proposed some thinking about charging power problem in thereactive power tracing process.
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