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Regional Marginal Loss Surplus Allocation Impact Study, April 2007

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Regional Marginal Loss Surplus Allocation Impact Study, April 2007. Adoption of full Locational Marginal Prices (LMPs) reflecting the marginal cost of transmission losses as well as congestion, as implemented in MRTU, will result in a surplus of revenue associated with marginal losses (marginal loss surplus or MLS). To maintain marginal price signals which reflect locational price differences in marginal loss costs, the CAISO has proposed to allocate MLS pro-rata to all Measured Demand (internal demand plus exports) in the MRTU Tariff filed on February 9, 2006 (MRTU Tariff Section 11.2.1.6).


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