LBMP Calculation Clause Samples
The LBMP Calculation clause defines the method for determining the Locational Based Marginal Price (LBMP) for electricity at specific locations within a power grid. It typically outlines the factors and data sources used in the calculation, such as system demand, generation costs, and transmission constraints, and may specify the timing and frequency of price updates. This clause ensures transparent and consistent pricing for electricity transactions, helping market participants understand and anticipate costs based on real-time grid conditions.
LBMP Calculation. The Locational Based Marginal Prices (“LBMPs” or “prices”) for Suppliers and Loads in the Real-Time Market will be based on the system marginal costs produced by the Real-Time Dispatch (“RTD”) program and during intervals when certain conditions exist at Proxy Generator Buses, the Real-Time Commitment (“RTC”) program. LBMPs for Suppliers and Loads in the Day-Ahead Market will be based on the system marginal costs produced by the Security Constrained Unit Commitment (“SCUC”). LBMPs calculated by SCUC and RTD will incorporate the incremental dispatch costs of Resources that would be scheduled to meet an increment of Load and, to the extent that tradeoffs exist between scheduling providers to produce Energy or reduce demand, and scheduling them to provide Regulation Service or Operating Reserves, LBMPs shall reflect the effect of meeting an increment of Load, given those tradeoffs, at each location on the Bid Production Cost associated with those services. As such, those LBMPs may incorporate: (i) Bids for Regulation Service or Operating Reserves; or (ii) shortage costs associated with the inability to meet a Regulation Service or Operating Reserves requirement under the Regulation Service Demand Curve and Operating Reserve Demand Curves set forth in Rate Schedules 3 and 4 respectively of this ISO Services Tariff. Additionally, for the purpose of calculating Real-Time LBMPs when RTD is committing and dispatching Resources meeting Minimum Generation Levels and capable of starting in ten minutes pursuant to Section 4.4.3.3 of this ISO Services Tariff, RTD shall include in the incremental dispatch cost of each such Resource a start-up cost based on the Start-Up Bid of each such Resource and shall assume for each such Resource a zero downward response rate.