PJM-style Locational Marginal Pricing

A centrally optimised nodal market in which wholesale prices reflect marginal energy cost, transmission congestion and losses, supplemented by capacity and ancillary-service markets.

Solution section

Fairness

The conception of equal treatment, cost allocation and access embedded in the architecture.

Fairness

The principal fairness logic is market-rule consistency.

Participants at the same location facing equivalent conditions are exposed to the same locational marginal value.

Different locations can legitimately face different prices because their marginal effect on the constrained system differs.

What the mechanism does not generally represent is distributive fairness over time:

\text{previous poor service} \not\rightarrow \text{future priority}.

That is a separate normative design question.