Locational marginal price

{
  "id": "MLC-T-ENE-001214",
  "term": "Locational marginal price",
  "field": "Energy",
  "definition": "A locational marginal price (LMP) is the price for electricity that reflects the incremental cost to increase electricity generation to satisfy electricity demand at a specific location - node, load zone, reliability region, or hub. This price accounts for the dispatched set of generators and the limitations of the transmission system. LMPs may have multiple components, such as charges for energy, congestion, transmission system losses, and carbon charges. Both day-ahead and real-time LMPs exist. Real-time LMPs can be set for hourly or sub-hourly blocks. Regional transmission organizations and independent system operators use LMPs to help establish price signals to meet electricity demand.",
  "subject": "Electricity",
  "references": [
    "EIA Glossary"
  ],
  "url": "https://mlchart.com/terminology/energy/locational-marginal-price/"
}