The influence of Laguerre parameter in nodal order reduction via bilinear conformal transformation is explored. The nodal order reduction via bilinear conformal transformation method is used for the electromagnetic simulations in second order form. The use of a second level Krylov subspace process enables the application of the algorithm to a larger problem. The choice of Laguerre parameter and its effect on the convergence of the reduction process is shown. A guideline for choosing this parameter is proposed. The method is applied for the reduction of a band-pass filter structure and a power island structure.