In an open deregulated electricity market

the economical signal of transmission losses has nonneglectable influence over participants in electricity market. If only the power transmission losses are considered

the selling incomes of electricity producers are equal to the expenditures of terminal electricity consumers. So based on this foundation

a novel nodal price method based on power distribution method is proposed. The power distribution method can give the analytical expressions of power components of transmission powers and transmission losses of each line and loads as well. Thus the proposed method can consider the effects of power position

power supplying paths and transmission losses on the nodal prices. At last

the IEEE 30 bus system is employed to demonstrate the feasibility of the proposed method.