In the deregulated power system, transmission pricing has become a very important task because it is necessary to develop an efficient, feasible and reliable pricing scheme that can generate the useful economic signals to transmission network users such as generating companies, distribution companies and customers. In a pool based market or bilateral contract market a number of techniques have been proposed to allocate the usage cost and loss cost of the transmission system to generators and/or loads under base case and contingency condition. In this paper, a new approach to allocate the usage cost and loss cost under contingency condition is presented. Maximum flow during an outage is calculated with the help of various line outage impact factors, then with the help of MW-Mile methodology, transmission usage cost and loss cost is allocated to users (generators and/or loads). Two test systems have been considered to check the efficiency and feasibility of the method namely Sample 6 and a large New England 39 bus system.