This month's Inside Lines informs PJM's stakeholders of various committee actions, upcoming training and other activities. PJM would like to highlight the following issue which will be presented at upcoming stakeholder meetings:

Long-Term FTR Working Group
The Long-Term FTR Working Group has developed a set of draft business rules. The draft rules include provisions for a 10-year Auction Revenue Rights (ARR) allocation for base load that ensures longer-term certainty while providing the flexibility to opt out of the 10-year rights each year. The rules incorporate a Stage 1A in the annual ARR allocation process in which load-serving entities (LSEs) can request the 10-year ARR allocation. Stage 1A also provides the ability to accommodate changes in base load during the 10-year period and links the ARR allocation to the long-term transmission planning process.

The draft rules also provide a method for specifying new sources to cover base load and projected growth, as well as a means to identify upgrades and costs needed to support an LSE's request for 30-year ARRs.

The working group soon will be turning its attention from the ARR allocation process to the annual Financial Transmission Rights (FTR) auction process. Among the enhancements to be investigated is extending the term of the FTRs available in the auction to up to three years. The annual auction currently awards FTRs for one year.

Feedback can be provided to Dave Anders at andersd@pjm.com or Bryon Koskela at koskela@pjm.com.

www.pjm.com

We are unable to respond to account inquiries sent in reply to this e-mail. To contact us by phone, please call our member hotline at 610.666.8980 or toll free 866.400.8980.

What's Inside:

Committees Report
Regulatory Reports

Committee Meetings:

• Regional Planning Process Working Group (RPPWG) – 02.24.2006 - Topics: Cost allocation, Market Efficiency Advisory Committee, market efficiency analysis and parking lot issues & scenario planning.
• Credit Working Group (CWG) – 02.23.2006 - Topics: The conference call was requested by the MIC at its February 2nd meeting, with the purpose of discussing some additional FTR prompt month analysis.
  01.30.2006 - Topics: Credit requirement for prompt month FTR product for all members.
• Markets & Reliability Committee (MRC) – 02.16.2006 - Topics: Credit policy, automatic sectionalizing, Black Start Services Working Group, non-firm willing to pay congestion, Regional Planning Process Working Group, cross border economic planning, load forecast impact on capacity obligations, Schedule 12 cost allocations, marginal losses, legal report, notice of inquiry on transmission corridors, Demand Side Response business rules, Operating Committee report, Planning Committee report, Market Implementation Committee report and NERC/MAAC report.
• Long-Term FTR Working Group (LTFTRWG) – 02.14.2006 - Topics: Draft Business Rules for the Long-Term Rights Allocation Proposal.
• Reserve Markets Working Group (RMWG) – 02.22.2006 – Topics: Operating Reserves and Non-Synchronized Reserve Market.
• Operating Committee (OC) – 02.14.2006 - Topics: Review of Operations, System Operations Subcommittee (SOS), Event Investigation Process, Committee Background, Automatic Sectionalizing, Reliability Committee (RC), NERC / Reliability First / MAAC Update, Electricity Market Committee (EMC), System Information Services (SIS), OC Action Items.
• Planning Committee (PC) - 02.15.2006 - Topics: Topics: Automated Sectionalizing Schemes, Generator Relay Subcommittee Update, System Dynamics Working Group Update, PJM Load Forecast Report, RFC Update, Review of NERC Version 0 Requirements, Planning Committee Annual Plan, Discussion Of SPS Procedure Modifications, HQ External Capacity Working Group.
• System Operations Subcommittee – 02.13.2006 - Topics: Review of Operations, Marginal Losses Update, Transmission Outage Acceleration Process, Reactive Issues, eDart Update, DTTF, ReliabilityFirst Corporation, System Operator Certification, Automatic Sectionalizing Discussion, Operational Performance Metrics, Regulation and Spinning Reporting.
• Markets Implementation Committee (MIC) – 02.02.2006 – Topics: Credit screening for all participants in monthly FTR auctions, 2006-2007 ARR/FTR timeline, draft business rules describing several enhancements to the ARR allocation process, creation of additional PJM trading hub, proposal for long-term options for limiting the sale of willing to pay for congestion transmission service based on ATC on external flow gates, ancillary services market changes for RelaiblityFirst, EMKT user interface, marginal losses and several working group updates.
• Market Settlements Working Group (MSWG) – 02.22.2006 – Topics: Settlements Replacement Project Update, Reporting Enhancements Survey Results, Accelerated Intra-month Report Postings, Accelerated Post-Billing Report Postings, Upcoming Report Changes, Follow-up on Impact Assessments from Last Conference Call, Proposed eSCHEDULES and eMTR Deadline Extensions and Residual Energy Allocation Methodologies.
• Dispatcher Training Taskforce (DTTF) – 02.21.2006 – Topics: Report on SOS, eDART, PJM Certification, Training and Manuals.
• Nuclear Generation Owners/Operators User Group (NGOUG) – 02.16.2006 - Topics: Addition of a users group secretary, System Operations Subcommittee update, EMS modeling and NRC draft generic letter.
• Transmission Substation Subcommittee (TSS) – 02.16.2006 – Topics: Update on Reliability First Committee, new maintenance standards and 230+ kV transformer data.
• Data Management Working Group (DMWG) – 02.16.2006 - Topics: Winter 2005 Model Update, Spring 2006 Maintenance Model Update, Summer 2006 Data Collection Process, Roundtable, Tern – Phase II, New Method For submitting EMS Model Changes, One-Line Diagrams Becoming Available, Outage Planning Process, Exchange of System diagrams and supporting information.
• System Information Subcommittee (SIS) – 02.15.2006 - Topics: Inter-RTO Activities, ESuite update, PJM Net, Daylight Savings Time Changes, and Metrics.
• eDart XML User’s Group (eDartXMLUG) - 02.15.2006 - Topics: IRC Enhancements, reactive reserve check (RRC), reactive ticket changes and transmission model submission changes.
• Black Start Services Working Group (BSSWG) – 02.10.2006 – Topics: review of SOS-T proposal on definition of minimum Black Start criteria for a transmission zone, review of the resultant effort of the PJM System Operator Subcommittee - Transmission assignment to develop a minimum critical black start criterion. Discussed next steps for the 2 remaining BSSWG assignments – (1) Tier 2 Black Start, and (9) Incentive Factor Review.
• Reserve Markets Working Group (RMWG) – 02.07.2006 – Topics: Overview of Real Time Control procedures and issues faced by PJM, NYISO allocation method, NYISO – day-ahead BCPG allocation, continued discussion from Market Implementation Committee regarding potential changes to the Operating Reserve construct, continued discussion of the production definition for 10-minute non-synchronized reserve and began discussions the scope of the non-synchronized reserve market.
  02.02.2006 – Topics: Operating reserve rules, operating parameters and PJM unit parameter details.
• Demand Side Response Working Group (DSRWG) – 02.06.2006 – Topics: Demand Side Response market initiatives update, finalization of proposed business rules related to DSR user interface implementation and the development of periodic reports – DSR registration and participation.

Return to Top

FERC Orders

February

• 02.22.2006 Docket Nos. ER06-407-000, ER06-408-000 (PDF) On February 22, 2006, the Commission issued an order in Docket Nos. ER06-407-000 and ER06-408-000, that the Commission rejected two interconnection service agreements ("ISAs") among PJM, GSG, LLC and Commonwealth Edison. The Commission rejected the two ISAs because it found that it lacked jurisdiction over the proposed interconnections, which involved the interconnection of GSG, LLC's wind generating plants to Commonwealth Edison's local distribution facilities.
• 02.13.2006 Docket No. ER06-78-002 (PDF) By letter order issued February 13, 2006, the Commission accepted PJM's revision to its OATT providing a funding mechanism for the Organization of PJM States, Inc., in compliance with FERC's Order of December 20, 2005 in Docket No. ER06-78-000.
• 02.06.2006 Docket No. ER06-309-000 (PDF) On February 6, 2006 the FERC issued an Order approving PJM's proposal to merge two committees, the Electricity Markets Committee and the Reliability Committee, into a new Markets and Reliability Committee (MRC). The corresponding revisions to the PJM Agreements are effective February 8, 2006.

January

• 01.31.2006 Docket No. ER06-304-000 (PDF) On January 31, 2006, in Docket No. ER06-304-000, the FERC issued an order accepting PJM's revisions to section 3.2.2(e) of the Operating Agreement (and associated provisions in the Tariff). The revisions 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 otherwise too low. The FERC approved the requested effective date of December 15, 2005.
• 01.26.2006 Docket Nos. ER06-28-000, 001 (PDF) On January 26, 2006, the Commission issued a letter order accepting for filing revisions to the generation and merchant transmission interconnection provisions of the PJM Interconnection, L.L.C. (PJM) Tariff, that were submitted on October 11, 2005, as amended on December 2, 2005. The Commission directed PJM to submit a compliance filing within 15 days of the order to revise Sheet No. 155A, to delete the proposed new section 54.7.1.3, as PJM proposed in the December 2, 2005 amendment to the filing. On January 31, 2006, the Commission issued an errata to correct the effective date of the revisions to January 26, 2006.
• 01.26.2006 Docket No. ER06-377-000 (PDF) On January 26, 2006, the Commission issued an order in Docket No. ER06-377-000, accepting for filing an interconnection service agreement among PJM Interconnection, L.L.C., Baileyville Wind Farm, LLC and Commonwealth Edison Company, effective November 23, 2005, as requested.

Return to Top

February

• 02.24.2006 Docket No. ER06-232-000 (PDF) On February 24, 2006, PJM Interconnection, L.L.C. filed at FERC in Docket No. ER06-232 additional information requested by FERC regarding previous amendments to the PJM Tariff and Operating Agreement. These amendments were filed on November 18, 2005 to provide market participants the opportunity to request transmission owners to accelerate or reschedule transmission outages.
• 02.21.2006 Docket No. ER06-487-000, ER06-488-000, ER06-489-000, ER06-490-000 (PDF) On February 21, 2006, PJM and the PJM Transmission Owners ("PJM TOs") filed an Answer to the Protest of H-P Energy Resources ("H-P") to the January 17, 2006 filing of PJM and the PJM TOs. PJM and the PJM TOs requested the Commission reject the H-P Protest and accept the January 17, 2006 filing.
• 02.17.2006 Docket Nos. ER05-6-023, EL04-135-025, EL02-111-043, EL03-212-039 (PDF) On February 17, 2006, PJM and the Midwest ISO filed a joint motion to extend, until March 21, 2006, the 90-day compliance filing required by the Commission's November 21 Order in the Cross Border Cost Allocation proceeding Docket ER05-6-023, etc.
• 02.10.2006 Docket Nos. ER06-028-000, 001 (PDF) On February 10, 2006, PJM Interconnection, L.L.C. submitted its filing to comply with the Federal Energy Regulatory Commission's January 26, 2006 Letter Order Accepting Revised Interconnection Provisions and January 31, 2006 Erratum to the January 26, 2006 Letter Order in Docket Nos. ER06-28-000 and ER06-28-001.
• 02.10.2006 D.C. Circuit Case Nos. 06-1018, 06-1031, 06-1032, 06-1036 (PDF) On February 10, 2006, PJM Interconnection, L.L.C. submitted for filing with the Court of Appeals for the D.C. Circuit a Motion for Leave to Intervene in Consolidated Edison Company of New York, Inc. and Orange and Rockland Utilities, Inc. v. FERC, Case Nos. 06-1018, 06-1031, 06-1032 and 06-1036, regarding petitions for review in Order No. 2006.
• 02.10.2006 Docket Nos. ER06-456-000, EL05-145-000 (PDF) On February 10, 2006, PJM filed an answer in Docket Nos. ER06-456-000 and EL05-145-000 opposing the motion of H-P Energy Resources, LLC, to consolidate the two proceedings (relating, respectively, to allocations of cost responsibility for 2005 RTEP transmission upgrades and the effects of shutting down the Potomac River generating plant on reliability of service for Washington, D.C.). PJM's answer argues that consolidation is procedurally improper, since neither proceeding has been set for hearing. PJM further contends that the motion is substantively without merit because the two proceedings are not closely related and have no significant issues in common.
• 02.10.2006 Docket No. ER06-28-000, 001 (PDF) On February 10, 2006, PJM Interconnection, L.L.C. submitted its filing to comply with the Federal Energy Regulatory Commission's January 26, 2006 Letter Order Accepting Revised Interconnection Provisions and January 31, 2006 Erratum to the January 26, 2006 Letter Order in Docket Nos. ER06-28-000 and ER06-28-001.
• 02.08.2006 Docket No. ER05-1181 (PDF) On February 8, 2006, PJM notified the Commission that it is extending the proposed effective date of its stated rates filing in Docket No. ER05-1181 from March 1, 2006 to April 1, 2006.
• 02.08.2006 20060208-EL05-145 (PDF) On January 8, 2006, Potomac Electric Power Company and PJM made a joint filing in Docket No. EL05-145-000 in compliance with FERC's January 9, 2006 order. The document is the public, redacted version with the Critical Energy Infrastructure Information (CEII) removed.
• 02.07.2006 Docket Nos. ER06-491-000, ER06-497-000 (PDF) On February 7, 2006, PJM filed a motion to intervene and protest in Docket Nos. ER06-491-000 and ER06-497-000. These proceedings involve proposals by two PJM transmission owners, Old Dominion Electric Cooperative and CED Rock Springs LLC, to include in transmission rates under the PJM Tariff revenue requirements based on the owners' respective ownership interests in a 500 kV transmission substation and related 500 kV transmission line that they jointly own and jointly constructed for the purpose of interconnecting their new generating plant to the PJM transmission system. PJM's protest argues that these proposals are inconsistent with the PJM Tariff and Commission orders interpeting the tariff, as well as with Commission policy articulated in Order No. 2003.
• 02.03.2006 Docket No. ER06-456-000 (PDF) On February 3, 2006, PJM filed a motion in Docket No. ER06-456-000 to extend until March 31, 2006, the deadline for protests and comments on PJM's RTEP cost allocation filing of January 5, 2006. The requested extension will enable PJM to provide additional information to stakeholders and to consider whether to submit an amendment to its filing. PJM proposes to extend until May 9, 2006, the effective date of the tariff sheets submitted with the January 5 filing.
• 02.02.2006 Docket No. ER06-406-000 (PDF) On February 2, 2006 in Docket Number ER06-406-000, PJM filed at FERC its Answer to Protests and Comments regarding PJM's proposal to enhance Demand Response in the PJM region.
• 02.01.2006 Docket No. ER06-594-000 (PDF) On February 1, 2006, PJM filed revisions to Attachment Q, PJM Credit Policy, to incorporate into the PJM Tariff PJM's credit requirements for Financial Transmission Rights auction products.

Return to Top