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A high voltage direct current (HVDC) line is proposed to be built between upstate New York and New York City (NYC), with both ends inside the control area of the New York Independent System Operator, Inc. (NYISO). This is the first fully controllable internal HVDC line in the United States to be modeled in the energy market. This paper proposes a generalized locational marginal price (LMP)-based energy market model for internal controllable HVDC lines (ICL). A key advantage of the proposed model is that the ICL operator can bid competitively in the energy market for power flow in both directions. The proposed model is initially demonstrated with a three-bus test system and then simulated in the NYISO’s day-ahead energy market. A sensitivity analysis of ICL bids is conducted, and ICL flow’s impact on market conditions is illustrated. The simulation results show the proposed model can effectively optimize the …