new nodal pricing model in power market environment is presented. There are two characteristics of this model, i.e. nodal prices and congestion factors are embedded in pricing formulation as the independent variables, which makes the aim of energy dispatch is consistent with the aim of financial settlement; when the minimal output constraint of units are taken into account, special constraints are developed to determine the marginal unit exactly. The presented pricing model is solved by interior point cutting plane method. Numerical analyses on RTS-24 bus system show that the price signal which comes from presented formulation can improve the efficiency of power grid usage, and provide rational economic signals for generation investments.This work is supported by Special Fund of the National Basic Research Program of China(No. 2004CB217905).