Well, if transmission charges factor in losses during transmission, then the generation cost would influence some part of the transmission cost. If generation w

Well, if transmission charges factor in losses during transmission, then the generation cost would influence some part of the transmission cost. If generation was an order of magnitude cheaper, then presumably the amount of power lost between the generator and the end user would cost a negligible amount, whereas I would assume it's currently a good chunk of your distribution costs. ianaEE