New Marginal Loss Data from PJM ISO

Data Operations Facility - May 2007 - Change Management - Standard Operating Procedure - Beginning on June 1, 2007, the LMP pricing approach will be modified to calculate transmission loss costs on a marginal basis, or Marginal Losses.

The new LMP calculation will now calculate the full marginal cost of serving an increment of load at each bus from each resource associated with an eligible energy offer as the sum of three separate componentsof LMP:

System Energy Price
Congestion Price
Loss Price

What does this mean for LIM customers?

The result of the change is that each PJM nodal price being stored today in LIM as an LMP value under the column name LmpVal, will now have two additional elements split out and stored under two new columns:

Congestion Price
MarginalLossPrice

The existing LmpVal column will stay "as is" and will represent "Total Lmp".

The new columns have already been setup in the LIM warehouse and the data should flow from May 31st without interruption when the Day Ahead market results are posted on Thursday afternoon.