Computation of loss factors for locational marginal prices in distribution systems

This paper presents alternatives for the calculation of locational marginal prices in electric power distribution systems. Although a distribution class locational marginal price (DLMP) is at the conceptual stage, the use of a DLMP has recognized potential for circuit loading strategies and energy and power flow control. The use of quadratic programming with the application of loss factors for the calculation of the DLMP is proposed and illustrated. A comparison of alternative techniques is presented and reviewed. The indicated DLMP calculation is a constrained, nonlinear optimization.