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Locational Marginal Pricing (LMP)

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Summary:

Fast Facts Locational Marginal Pricing (LMP)

Extract:

Locational Marginal Pricing (LMP) divides California into thousands of points or “nodes” on the transmission grid instead of three main “zones”. Distinct prices at the different nodes are used to determine the most cost-effective use of resources to resolve transmission bottlenecks.

Document Locations:

• MRTU Fast Facts Kit