Common use of LBMP Bus Calculation Method Clause in Contracts

LBMP Bus Calculation Method. System marginal costs will be utilized in an ex ante computation to produce Day- Ahead and Real-Time LBMP bus prices using the following equations. The LBMP at bus i can be written as: Where: = LBMP at bus i in $/MWh = the system marginal price at the Reference Bus = Marginal Losses Component of the LBMP at bus i which is the marginal cost of losses at bus i relative to the Reference Bus = Congestion Component of the LBMP at bus i which is the marginal cost of Congestion at bus i relative to the Reference Bus The Marginal Losses Component of the LBMP at any bus i is calculated using the equation: Where: = delivery factor for bus i to the system Reference Bus and: Where: = injection at bus i The Congestion Component of the LBMP at bus i is calculated using the equation: Where:

LBMP Bus Calculation Method. System marginal costs will be utilized in an ex ante computation to produce Day- Ahead and Real-Time LBMP bus prices using the following equations. The LBMP at bus i can be written as: Where: = LBMP at bus i in $/MWh = the system marginal price at the Reference Bus = Marginal Losses Component of the LBMP at bus i which is the marginal cost of losses at bus i relative to the Reference Bus = Congestion Component of the LBMP at bus i which is the marginal cost of Congestion at bus i relative to the Reference Bus The Marginal Losses Component of the LBMP at any bus i is calculated using the equation: Where: = ( − 1) = delivery factor for bus i to the system Reference Bus and: Where: = (1 − ) = injection at bus i The Congestion Component of the LBMP at bus i is calculated using the equation: Where:: ∈