A 
system for electric grid utilization and optimization, comprising a communications interface executing on a network-connected 
server and adapted to receive information from a plurality of iNodes, the plurality of iNodes comprising a source 
iNode, a sink 
iNode, and a plurality of transmission or distribution iNodes, an event 
database coupled to the communications interface and adapted to receive events from a plurality of iNodes via the communications interface, a modeling 
server coupled to the communications interface, and a statistics 
server coupled to the event 
database and the modeling server, wherein the modeling server, on receiving a request to establish an allocation of at least one of transmission losses, distribution losses, and ancillary services to a specific sink 
iNode, computes at least one virtual path for flow of 
electricity between a source iNode and the specific sink iNode and wherein the modeling server further computes, for each transmission or distribution iNode included in the computed virtual path, at least one 
energy loss and allocates a portion thereof to the specific sink iNode, is disclosed.