Bill of Material Invoice in Power Distribution between States

 Bill of Material for Power Distribution between States via Grids.

The Power Generated, Distributed and Consumed Between States, consumers in the future could be a Bill of Material Invoice.   The Power is Generated from Various States and is distributed Via Grids that cross the State boundaries.  The Power Generated in State A for example could travel 1000 km and cross lets say "n" number of states and is being consumed by all the states en-route and State "N".  

What should be mode to determine the cost of Power when it travels a large distance and consumed at a far away territory?  The Power transmission always involves losses when it is distributed in a large distance.  Therefore the cost of Power at the Source State A and the Cost of Power at the destination State "N" would vary based on the distance covered, no of substations crosses, no of transmission lines crossed, no of transformers crossed and so on.   The Cost of power then can never be same at source and destination.  The Power Distribution Companies of the State can ensure that power is distributed at a cheaper price only if it is distributed locally with in a Geographically administered boundaries.  The power once crosses over to another state then there might charges or taxes for transit and so on added to the cost that would make power costly for the recipients states.  

If if the objective is to make power cheap to the people of the region than it has to be locally generated, distributed with in the administrative boundaries for maximum benefit to it's consumers and maximum profit for the respective power companies in the States.

Therefore,  the invoice for Power Generated, Distribution and Consumed should be a bill of material invoice for the Consumers of all kinds that clearly lists the Power Generation Cost, Distribution Cost, Maintenance Cost, Distance Cost, Sub Stations Cost, Transformer Cost, Power Line Cost and so on to ensure the Power Companies don't go Bankrupt.  Similarly, the invoice between power companies across States shall adopt this principle in ensuring that the Power Generation, Distribution and Consumption across State Boundaries is also a Bill of Material Invoice that ensures that the companies involved, know precisely the costs involved and analyze for improvements, innovations in it's operations.

Hopefully respective State Power Companies adopt this a mandatory practice.