OrangeCoat

It would be even better if SC and the entire Southeast moved to competitve, de-regulated, locational marginal price systms like New York, New England, the Midwest, and the so-called Pennsylvania-Jersey-Maryland, or PJM, region. Texas and California are also moving in this direction.

What Is "Locational Marginal Price"?

The "Locational Marginal Price" (“LMP”) is a market-pricing approach used to manage the efficient use of the transmission system when congestion occurs on the bulk power grid. The Federal Energy Regulatory Commission (FERC) has proposed Locational Marginal Price as a way to achieve short- and long-term efficiency in wholesale electricity markets.

Marginal pricing is the idea that the market price of any commodity should be the cost of bringing the last unit of that commodity - the one that balances supply and demand - to market• In electricity, LMP recognizes that this marginal price may vary at different times and locations based on transmission congestion. With Locational Marginal Price, market participants will know the price of hundreds of locations on the system

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