Course Title:	PJM Marginal Losses Training
Description:	Locational Marginal Price (LMP) is defined as the marginal price for energy at the location where the energy is delivered or received. Currently, LMP is a pricing approach that addresses transmission system congestion costs, as well as energy costs. The cost of transmission losses is currently accounted for on an average basis in the LMP calculation. Beginning on June 1, 2007, the LMP pricing approach will be modified to calculate transmission loss costs on a marginal basis, or Marginal Losses. The new LMP calculation will now calculate the full marginal cost of serving an increment of load at each bus from each resource associated with an eligible energy offer as the sum of three separate components of LMP: System Energy Price, Congestion Price and Loss Price. Therefore, each spot market energy customer will now pay an energy price that includes the full marginal cost of energy of delivering an increment of energy to the purchaser’s location. The new LMP pricing approach, including Marginal Losses, will require changes related to the operation of market, reliability and settlement, and changes in patterns of dispatch will result. PJM Market Participants who are interested in understanding how implementing Marginal Losses in the PJM LMP calculation will impact PJM markets, operations and settlements should attend this training.
Slides:	Marginal Losses Implementation Training
Schedule:
Agenda:	What are Transmission Losses? Marginal Loss Calculation Loss Surplus Revenue Allocation Business Examples Retail Load Scheduling - Carve Outs PJM Application Changes Settlement Changes
Prerequisites:	It is not necessary that the participants have a complete understanding of the PJM Energy market, but it is preferred that they are familiar with PJM market structure, operations and terminology, how LMPs are calculated, and how the Energy market operates. This course will not cover conceptual topics related the PJM Markets and PJM business rules.
Intended Audience:	The intended audience is all PJM participants interested in understanding how implementing Marginal Losses in the PJM LMP calculation will impact PJM markets, operations and settlements.
Cost:	There is no charge to PJM Members. Non-Members are charged a nominal fee. Please contact TrainingSupport@pjm.com for more details.

For additional information, please contact Member Relations at 610-666-8980 or toll free 866-400-8980.