Pricing Method used to establish the price for Energy purchases and sales at specific locations throughout the New England wholesale electricity market, to collect transmission congestion charges, to determine compensation for FTR Holders, to pay generators, and to charge Load.

LMPs result from the application of a linear programming process, which minimizes total energy costs for the entire New England region, subject to a set of constraints reflecting physical limitations of the power system. The process yields the three components of LMPs: LMP ($/MW) = Energy component + Loss component + Congestion component The energy component is the same for all locations. The loss component reflects the marginal cost of system losses specific to each location, while the congestion component represents the individual location’s marginal transmission congestion cost.

Nodes will be modeled on both the PTF and non-PTF systems, consistent with requirements to model actual generator and/or Dispatchable Load locations on the system.

The Nodes that comprise the Hub are listed below. In addition, the proposed Load Zones are also shown in the graphic. To the extent possible, Load Zones follow political boundaries. The SMD software implementation will allow for changes in Load Zones.

Hub Nodes:
NORTHFLD 345
LUDLOW 345
CARPTRHL 345
SANDY_PD 345
MILLBURY 345
PRAT_J 230
LUDLOW 115
PALMER 115
W_CHRLTN 115
CARPTRHL 115
N_OXFORD 115
WBSTR_ST 115
BARRE 115
BLOMNGDL 115
NASHUA 115
GREENDAL 115
ROLF_AVE 115
W_BOYLST 115
WACHUS 115
PRAT_J 115
WENDLDPT 115
WYMNGRDN 115
VERNONHL 115
E_MAIN_S 115
NRTHBORO 115
PAXTON 115
STERLING
AYER 115
SANDY_PD 115
MILLBURY 115
THORNDIK 115
LITTLRST 115
Corrected 3/15/02)

Under SMD, all generators, including under 5 MW generators, will have generation obligations at the Node and settle at the Node. Under 5 MW generators will be price takers and will not be eligible to set LMP.

Yes.