Thursday, December 22, 2005

Welcome to the inaugural PJM Newsletter called Inside Lines. This newsletter was developed in response to the Governance Working Group (GWG) discussions, where members indicated an interest in information about various PJM activities. PJM would like your feedback on the information contained in this letter as well as any additional information you would like to see on a monthly basis. Feedback can be provided to Dave Anders at andersd@pjm.com or Bryon Koskela at koskela@pjm.com.


www.pjm.com

What's Inside:
Committees Report
Regulatory Reports
Regulatory Reports Committee Updates Upcoming Training
PJM FERC Orders
12.01.2005 - Docket Nos. ER04-368-002, 003 (PDF) On December 1, 2005, the Commission issued an order in Docket Nos. ER04-368-002 and -003, accepting for filing a substitute construction service agreement among PJM Interconnection, L.L.C., the Borough of Chambersburg, and Monongahela Power Company, the Potomac Edison Company, and West Penn Power Company, all doing business as Allegheny Power, with the requested December 17, 2003 effective date. The Commission found that the filing complied with its order issued on March 15, 2004, in Docket Nos. ER04-368-000 and -001. (more)

PJM FERC Filings
12.13.2005 - Docket No. ER06-319-000 (PDF)
On December 13, 2005, PJM filed revisions to Schedule 2 of the PJM Tariff in order to reflect Allegheny Energy Supply Company, LLC's and Monongahela Power Company's revenue requirements associated with the Bath County generation facility in the PJM region. (more)
PJM Reminders

Upcoming Stakeholder Meetings can be found on PJM's Meeting advisor.

The next Members Committee Meeting will be held on January 26, 2006.

Summaries of all committee meetings will be provided in this newsletter.

New Members

PJM welcomes the following new members:
Forest Investment Group, LLC
Bell Trading, Inc.
Geneva Energy LLC
Pilot Power Group
Ontario Power Generation
DB Energy Trading LLC
Jersey-Atlantic Wind, LLC
Emera Energy Services, Inc.
Air Liquide Industrial U.S., L.P
CBK Group, LTD

01.10.2006 Generation 101
01.11.2006 Generation 201
01.11-12.2006 Transmission 101
01.12.2006 Generation 301
01.13.2006 Operations 101
01.24.2006 PJM 101: The Basics
01.25.2006 Scenario-Based Training
Committees Report

Committee Meetings:

November

  • Small Generation Interconnection Working Group (SGIWG) - 11.07.2005 - The working group continues its efforts on Attachment H: Small Generator (10MW and below) Technical Requirements and Standards.
  • System Operations Subcommittee (SOS) - 11.07.2005 - The subcommittee focused on three main areas at their meeting. Discussions included the 2005 summer peak action items, fuel inventory issues and reactive services testing concerns and curve verification. Updates were provided on eDART and the Data Management Working Group. Results of the System Operators Certification were reviewed from last month.
  • Tariff Advisory Committee (TAC) - 11.07.2005 - The committee reviewed and prepared language for the CDTF proposals, Frequently Mitigated Units, Regulation Market Lost Opportunity Cost, Demand Side Response Initiatives and Committee Restructuring. All items are included on the November 17, 2005 Members Committee consent agenda.
  • Operating Committee (OC) - 11.08.2005 - The committee discussed member-operating issues. A review of activities and assignments of the SOS was completed. Updates were given on NERC / MAAC and the Reliability Committee. Changes to the Emergency Operations Manual (M-13) were reviewed.
  • Market Implementation Committee (MIC) - 11.10.2005 - PJM lead a discussion for Stakeholder input on PJM Comments on FERC Order 888NOI and Marginal Losses. AEP presented its position to marginal loss implementation. The committee reviewed the criteria and mechanism by which units set price in the real-time market. PJM also discussed concerns regarding spread bidding in the day-ahead market. An update of the GATS system was provided.
  • Transmission Expansion Advisory Committee (TEAC) - 11.15.2005 - The committee discussed the economic planning studies, analysis results of additional system upgrades and M and N impact studies. Other agenda items included the state of SGIWG standards (10 MW and less), process and procedures modification and schedule 12 cost allocation.
  • Reserve Markets Working Group (RMWG) - 11.16.2005 - The committee reviewed the non-synchronized reserve market, operating reserves - localized allocation, operating reserves allocation, MMU report on operating reserves, and operating reserves - desired MW calculation.
  • System Information Subcommittee (SIS) - 11.16.2005 - The subcommittee received updates on PJM operations, eSuite and PJM Net. Items discussed were electric utility security issues in addition to communication and system issues that included Daylight savings time changes and PJM plans, metrics for TOAC Do's for EMS, State Estimator and Data Availability.
  • Data Management Working Group (DMWG) - 11.17.2005 -The working group meeting covered the fall 2005 maintenance model update, winter data collection process and MISO/PJM network model team meeting. Also discussed was the ICCP object naming conventions and data request, PJM model update validation suggestions (TOs) and the exchange of system diagrams and support information.
  • Members Committee (MC) - 11.17.2005 - The following items were approved by the membership as a part of the consent agenda: Tariff revisions regarding Economic Demand Response program, cost based no-load option for price-based offers, associated units that are frequently mitigated and OA revisions for regulation market lost opportunity. The members also endorsed the proposed revisions to the Tariff, RAA, PJM Western Region RAA and PJM Southern Region RAA and approved proposed revisions to the OA regarding committee restructuring. A straw vote for a conceptual endorsement for the Market Monitoring Plan Revisions was taken. The results of the straw vote were 11 in favor, 1 against and 23 members abstained.
  • Planning Committee (PC) - 11.30.2005 - The committee had four voting items on the agenda, which included PJM load forecasting model, 2006 IRM study assumptions letter, 2006 summer assessment modifications, and MAAC standard review and endorsement. Other agenda items captured the aging infrastructure initiative, PJM tariff items and an update on ReliabilityFirst Corporation (RFC).
  • Small Generation Interconnection Working Group (SGIWG) - 11.30.2005 - The working group reviewed the PJM SCADA alternative attachment H language, SGIWG demonstration project description and metering requirements for the Small Generation Interconnection Working Group.
December
  • Cost Development Task Force (CDTF) – 12.01.2005 –The task force defined the CT and CC VOM costs as proposed in Manual M-15 changes. The group also reviewed the proposed status of cost based no-load with Market based offers and discussed gas procurement issues related to Day Ahead and Real Time offers.
  • Market Implementation Committee – Marginal Losses Meeting (MIC) – 12.01.2005 –The committee meeting covered existing over-collection allocation mechanisms. Also reviewed were the straw poll results on the six potential alternatives and continued discussion on the pros and cons of each of the remaining approaches.
  • Long-Term FTR Working Group (LTFTRWG) – 12.05.2005 - The group continued discussion of the long-term transmission rights allocation proposal. The group also reviewed an approach to conducting a simultaneous feasibility test for long-term ARRs. The group also discussed business rules for a longer-term auction.
  • Market Monitoring Advisory Committee (MMAC) – 12.08.2005 - The group discussed the proposed revisions to Attachment M of the PJM tariff. The group also discussed and provided input on the scope of the Market Monitoring plan for 2006.
  • System Operations Subcommittee (SOS) Generation and Transmission – 12.12.2005 - Topics: Review of Operations, 2005 Summer Peak Action Items, Fuel Inventory Reporting, Reactive Issues, Winter Emergency Procedures Drill, Small Generation Interconnection, Daylight Savings Time, eDART Update, DMWG Update, DTTF Update, Gas Pipeline Study Results, System Operator Certification
  • Audit Advisory Committee (AAC) – 12.12.2005 - Topics: 2005 SAS 70 Audit
  • Market Settlements Working Group (MSWG) – 12.12.2005 - Topics: Settlements Replacement Project Delay, Regulation Lost Opportunity Cost Calculation Changes, AEP Rate Settlement/RTO Startup Cost Recovery Implementation, Schedule 13 Changes, Marginal Losses Implementation, Update on Network Service Peak Load Reconciliation.
  • Operating Committee (OC) – 12.13.2005 - Topics: Review of Operations, SOS Update, Natural Gas Issues, Event Investigation Process, RC Update, NERC/MAAC Update, EMC Update, SIS Update, Behind the Meter Generation
  • System Information Subcommittee (SIS) – 12.14.2005 - Topics: PJM Operations, Inter-RTO Activities, E-Suite update, PJM net Project, Electric Utility Security, Daylight Savings Time Changes, Metrics for TOAC DO’s for EMS, State Estimator and Data Availability
  • Market Implementation Committee (MIC ) –12.14.2005 - Topics: Over-Collection Allocation Options, 2006-07 Auction Schedule, Business for BOPP Auction, FTR Credit Business Rules, FTR Credit Presentation, SPS Process, PJM Interconnection L.L.C. Docket No. EL05-127-000, Impact of MON Power Load Transfer on ARR FRT Markets.
  • Demand Side Response Working Group (DSRWG) - 12.15.2005 - Topics: Demand Side Response Market Initiatives Update, Load Response Activity Report, DSR User Interface Sub-Committee Update, Proposed Business Rules Related To DSR User Interface Implementation, Enabling The Direct Communication Of User Interface Implementation, Summer 2005 Emergency Load Response Experience Update.
  • Retail Access Working Group (RAWG) – 12.15.2005 - Topics: Demand Side Response Market Initiatives Update, Load Response Activity Report, DSR User Interface Sub-Committee Update, Proposed Business Rules Related To DSR User Interface Implementation, Enabling The Direct Communication Of User Interface Implementation, Summer 2005 Emergency Load Response Experience Update.
  • Transmission Owners Agreement-Administrative Committee (TOA-AC) – 12.15.2005 - Topics: TODO meeting Update, Combined TOA Vote, Cost Recovery Update, Revenue Allocation for non-firm PTP in-zone, ISPSAC Meeting discussion (NYISO / ISO-NE / PJM - Inter-Area Planning Stakeholder Advisory Committee, Other Status Report Items.

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Regulatory Reports
FERC Orders

December

  • 12.01.2005 - Docket Nos. ER04-368-002, 003 (PDF)
    On December 1, 2005, the Commission issued an order in Docket Nos. ER04-368-002 and -003, accepting for filing a substitute construction service agreement among PJM Interconnection, L.L.C., the Borough of Chambersburg, and Monongahela Power Company, the Potomac Edison Company, and West Penn Power Company, all doing business as Allegheny Power, with the requested December 17, 2003 effective date. The Commission found that the filing complied with its order issued on March 15, 2004, in Docket Nos. ER04-368-000 and -001.

November

  • 11.28.2005 Docket No. ER05-644-000, 001, 002 (PDF)
    On November 28, 2005, FERC accepted a settlement agreement regarding Cost of Service Recovery Rates for five generating units in New Jersey that are necessary for grid reliability. The settlement is effective as of February 25, 2005.
  • 11.21.2005 Docket No. ER05-6-023 (PDF)
    On November 21, 2005, the Commission issued the attached Order in Docket No. ER05-6-023 responding to the joint PJM/MISO/PJM TOs/MISO TOs ("Applicants") May 17, 2005 filing ("Cross-Border Planning Filing"). The May 17 Filing was made in compliance with an order issued in the seams elimination proceeding on November 18, 2004. In this Order, the Commission conditionally accepts the proposal to allocate costs for reliability projects in one RTO that benefit customers in the other. The Commission views this process as supporting the joint and common market between PJM and MISO. In the May 17 filing, the Applicants promised to make second filing by June 1, 2006, to address economic projects. Thus, in this Order the Commission requires the Applicants to file an economic planning cross-border cost allocation proposal no later than June 1, 2006.
  • 11.18.2005 Docket No. EL05-127-000 (PDF)
    On November 18, 2005, the ALJ issued a Certification of Uncontested Settlement in the proceeding regarding PJM's Behind The Meter Generation ("BTMG") rules. The settlement resolves all disputes in Docket No. EL05-127-000, including whether PJM should expand its BTMG netting program to include generation connected to a distribution system and reliability concerns associated with allowing municipal generators to participate in PJM's BTMG netting program.
  • 11.08.2005 Docket No. ER05-319-003 (PDF)
    On November 8, 2005, the Commission issued an order in Docket No. ER05-319-003, accepting for filing the substitute interconnection service agreement among PJM Interconnection, LLC, MM Hackensack Energy, LLC, and Public Service Electric and Gas Company that was filed to comply with the Commission's May 6, 2005 order in the same docket. The Commission granted the requested November 8, 2004 effective date for the agreement.

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FERC Filings

December

  • 12.13.2005 - Docket No. ER06-319-000 (PDF)
    On December 13, 2005, PJM filed revisions to Schedule 2 of the PJM Tariff in order to reflect Allegheny Energy Supply Company, LLC's and Monongahela Power Company's revenue requirements associated with the Bath County generation facility in the PJM region.
  • 12.09.2005 - Docket No. ER06-309-000 (PDF)
    On December 9, 2005, PJM filed at FERC amendments to the PJM Tariff, Operating Agreement, RAA, RAA-West, and RAA-South to revise the PJM stakeholder committee structure, including the formation of the Markets and Reliability Committee.
  • 12.09.2005 - Docket No. ER06-304-000 (PDF)
    On December 9, 2005, PJM filed revisions to the OA and Tariff to change the calculation of Regulation Lost Opportunity Cost so that regulation units that must operate at a higher cost to maintain their ramp rate receive full compensation during periods when the applicable Location Marginal Price (LMP) is too low. PJM requested an effective date of December 15, 2005
  • 12.09.2005 - Docket No. RM05-30-000 (PDF)
    Testimony of Michael J. Kormos, Senior Vice President Reliability Services, PJM Interconnection, L.L.C. on Behalf of the ISO/RTO Council.
  • 12.08.2005 - Docket No. ER06-303-000 (PDF)
    On December 8, 2005, PJM filed revisions to the Operating Agreement (and Tariff) to permit Market Participants submitting market-based energy offers to submit, in association with such offers, cost-based no-load fee offers. PJM requested that these revisions become effective February 6, 2006 .
  • 12.09.2005 - Docket No. RM05-30-000 (PDF)
    On December 5, 2005, PJM filed Supplemental Comments regarding certain issues raised by the Commission at the November 18, 2005, Technical Conference in the Electric Reliability Organization (ERO) rulemaking proceeding, Docket No. RM05-30-000.
  • 12.05.2005 - Docket No. AD06-2-000 (PDF)
    On November 3, 2005 the Federal Energy Regulatory Commission ("Commission") issued a Notice of Proposed Voluntary Survey and Technical Conference ("Notice") in Docket No. AD06-2-000. In the Notice the Commission asked for comments on the Voluntary Survey on Saturation and Penetration of Advanced Metering and Demand Response ("Survey"), which was issued as an attachment to the Notice. Please note that on December 5, 2005 PJM Interconnection, LLC filed comments on the Survey in response to the Notice.
  • 12.02.2005 - Docket No. ER06-28-000 (PDF)
    On December 2, 2005, PJM Interconnection, LLC ("PJM") filed an amendment to its filing in Docket No. ER06-28-000 submitted on October 11, 2005, consisting of proposed revisions to the generation and merchant transmission interconnection provisions and related definitions of the PJM Open Access Transmission Tariff ("PJM Tariff").

November

  • 11.30.2005 - Docket ER05-1279-000 (PDF)
    On November 30, 2005, PJM supplemented its stated rates filing in Docket No. ER05-1181-000, in accordance with the Commission's August 31, 2005 letter order.
  • 11.22.2005 - DOE DSR Comments (PDF)
    The Department of Energy has distributed a survey to various industry participants seeking comments on what additional measures can be undertaken at the state and federal level to promote demand side responsive resources. PJM has responded to the survey as it relates to the wholesale market place suggesting additional initiatives including advanced metering, a demand side forward product and action by the Federal Government concerning its own facilities' consumption.
  • 11.22.2005 - Docket No. RM05-25-IRC (PDF)
    On November 22, 2005, PJM filed its own comments and filed comments as a participant in the ISO/RTO Council regarding the FERC's notice of inquiry in Docket No. RM05-25-000, which concerns the proposed reform of the Pro Forma Open-Access Transmission Tariff promulgated in Order. No. 888.
  • 11.22.2005 - Docket No. RM05-25-000 (PDF)
    On November 22, 2005, PJM filed its own comments as a participant in the ISO/RTO Council regarding the FERC's notice of inquiry in Docket No. RM05-25-000, which concerns reform of the Pro Forma Open-Access Transmission Tariff promulgated in Order No. 888.
  • 11.22.2005 - Docket No. ER05-1181-000 (PDF)
    On November 22, 2005, PJM filed a motion seeking the appointment of a settlement judge to resolve issues regarding its
    request for stated rates in Docket No. ER05-1181-000.
  • 11.21.2005 - Docket No. ER06-100-000 (PDF)
    On November 21, 2005, PJM filed at FERC a Motion to Intervene in Docket No. ER06-100, in which Allegheny Energy Service Corporation on behalf of Hunlock Creek Energy Ventures seeks Commission approval of its revenue requirements for providing Reactive Power from the Hunlock Creek Power Station in the PJM region.
  • 11.18.2005 - Docket No. AD05-17-000 (PDF)
    On November 18, 2005, PJM filed comments responding to the questions regarding competition in electric energy markets posed in a notice issued by the specially constituted interagency Electric Energy Market Competition Task Force in Docket No. AD05-17-000.
  • 11.18.2005 - Docket No. ER06-232-000 (PDF)
    On November 18, 2005, PJM filed revisions to the Tariff and Operating Agreement to add rules that allow transmission outages to be accelerated or rescheduled under certain conditions at the request of a generation owner or market participant. The new provisions give market participants an opportunity in certain cases to pay a transmission owner to reschedule or accelerate an outage and thereby avoid or reduce the unhedged transmission congestion the participant would face as a result of the original schedule for the outage. PJM asked the FERC to accept the new provisions effective February 1, 2006.
  • 11.17.2005 - Docket Nos. EL03-236-006, EL04-121-000 (PDF)
    On November 17, 2005, in Docket Nos. EL03-236 and EL04-121, PJM filed a letter correcting the due date for reply comments regarding the settlement filed on December 16, 2005, in those dockets.
  • 11.16.2005 - Docket Nos. EL03-236-006, EL04-121-000 (PDF)
    On November 16, 2005, in Docket Nos. EL03-236-006 and EL04-121-000, PJM filed settlement documents resolving all issues regarding scarcity pricing and PJM's market mitigation rules set for hearing in the two dockets.
  • 11.15.2005 - Docket No. EL06-12-000 (PDF) On October 26, 2005 AMP-Ohio filed a complaint against PJM Interconnection, LLC ("PJM") claiming that PJM had violated certain obligations under the RAA-West and the PJM Amended and Restated Operating Agreement. PJM filed its Answer ("PJM Answer") to the AMP-Ohio Complaint on November 15, 2005 in Docket No. EL06-12-000.
  • 11.10.2005 - Docket No. RM02-12 (PDF)
    On November 10, 2005 PJM filed revisions to the PJM Tariff to comply with the Commission Final Rule in Docket No. RM02-12-000. Standardization of Small Generator Interconnection Agreements and Procedures, Order No. 2006, III FERC Stats. & Regs., Regs. Preambles 31,180 (2005).
  • 11.08.2005 - Docket Nos. ER05-1410-000, EL05-148-000 (PDF)
    On November 8, 2005, PJM filed an answer to comments and protests in Docket Nos. ER05-1410, et al., concerning the Reliability Pricing Model. To address concerns of state commissions and others for more time to review the filing, PJM proposed in its Answer to defer implementation of RPM by one year, and described a procedural track with a final FERC decision by October 1, 2006 that would allow PJM and market participants to implement RPM on June 1, 2007. PJM recommended that the FERC issue an initial order resolving basic policy decisions for which the record is adequately developed; hold a paper hearing and, as necessary, a further technical conference to address any issues that require additional factual development; and establish parallel settlement judge proceedings allowing the parties to attempt to resolve consensually as many issues as possible, without delaying the final decision.

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