Definition
The spot wholesale electricity market that settles actual physical energy flows as they occur, typically at 5-minute intervals. Real-time LMPs reflect actual grid conditions including unexpected load changes, generation outages, and transmission constraints. Day-ahead positions — both physical schedules and virtual bids — are financially liquidated at real-time prices. The difference between day-ahead and real-time LMPs at a location (the DART spread) is the source of profit or loss for virtual traders.
📚
Topic Deck
Markets & Pricing
🔗
Source
FERC Pro Forma OATT / LGIP