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Abstract—This paper presents and analyses several approaches for transmission cost allocation in a centralized pool based electricity market environment that includes composite embedded/marginal transmission pricing mechanisms. The revenue from marginal cost based remuneration (MBR) necessitates supplementary charges; thus it is required to identify the contribution of individual generators and loads to the line flows using tracing methods and implement usage-based transmission pricing methods for allocating the remaining fixed cost. Eight transmission pricing schemes and three tracing methods are being evaluated and applied on Garver’s 6-bus system and on IEEE 24-bus reliability test system to illustrate the different results derived among the pricing schemes for each tracing method or among tracing methods for each pricing scheme. Index Terms—Transmission pricing, electricity tracing, embedded costs, MW-Mile, counter-flow. I