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:

Member companies and PJM beat the heat
New Record Set

July’s record heat challenged PJM and its member companies to meet new record-setting peak demands. (more)

More PJM Member Information at Your Fingertips
Members will now have access to redlined versions of the PJM Manuals to make it easier to see what's changed in new versions of the manuals. Access them now by visiting our Web site. (more)

Department of Energy to Release Congestion Study in August

The U.S. Department of Energy (DOE) is expected to issue on August 9 its congestion study that will likely form the basis for designating U.S. transmission line corridors to help alleviate congestion. If approved by DOE, the corridors are designated National Interest Electric Transmission Corridors (NIETC). (more)

PJM Holds Pandemic Planning Symposium

On June 29, 2006, PJM hosted a symposium to address pandemic influenza preparedness among PJM and other electric sector members. (more)

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What's Inside:

Committees Report
Highlights
Regulatory Reports

08.21.2006 PJM 101: The Basics
08.22.2006 Generation 101
08.23.2006 Generation 201
08.24.2006 Generation 301
08.25.2006 Operations 101
09.12.2006 PJM 101: The Basics
09.25.2006 – 09.29.2006 Load Serving Entity 201

Committee Meetings:

• Planning Committee (PC) – 07.26.2006 - Topics: The Planning Committee will review and vote to approve the draft minutes from the June 28, 2006 meeting, FERC Order 2006 Compliance, *Installed Reserve Margin and RRAWG Update, *Circulation Model Working Group Update and Proposal, Reactive Limits for 15 Year RTEP, NERC and RFC Updates, Planning Committee “Parking Lot”.
• Joint MISO/PJM IPSAC – 07.25.2006 - Topics: Review of MISO-PJM Coordinated System Plan Scope of Work, Discussion of Preliminary Results, Timeline for Remainder of Analysis and Report.
• Metering Issues Subcommittee (MIS) – 07.24.2006 - Topics: PJM’s Current Environment, Design Workshop, Future Meeting Topics.
• Small Generation Interconnection Working Group (SGIWG) – 07.24.2006 - Topics: Final Review of the 0-10 and 10-20 MW Interconnection Standards.
• Systems Information Subcommittee (SIS) – 07.19.2006 - Topics: Member Company Roundtable, PJM Operations, Inter-RTO Activities, eSuite Update, PJMnet, Electric Utility Security Issues, PJM Advanced Control Center Project, Communication and System Issues, Metrics.
• Operating Committee (OC) – 07.18.2006 - Topics: NERC Update, Review of Operations, System Operations Subcommittee, Black Start Services, NERC Critical Infrastructure, Demand Side Response, Markets and Reliability Committee, Market Implementation Committee, System Information Subcommittee, Eastern Interconnection Phasor Project, ReliabilityFirst Update.
• Marginal Losses Working Group (MLWG) – 07.17.2006 - Topic: Loss Surplus Allocation Options.
• Reserve Requirement Assumptions Working Group (RRAWG) – 07.17.2006 - Topics: Winter Weekly Reserve Target Analysis, Maximum ALM Analysis, PJM Unit Performance Class Average Values, Higher Than Average Ambient Temperature Impacts On Unit Performance.
• 180 Day Report (180DRWG) – 07.17.2006 - Topics: Responses To General Questions On The 120-Day Report, Additional Analysis And Data, Operational Details, Operations Process Improvements, Issues For Further Discussion.
• Governance Working Group (GWG) – 07.07.2006 - Topics: Determine Scope for the Remainder of 2006, Finalize Charter, Report/Further Review of Progress on Individual Task Area Items, Demo of eRooms Tool Available for Collaboration on Work Items.
• Markets and Reliability Committee (MRC) – 07.14.2006 - Topic: Transaction Ramp Reservation.
• System Operations Subcommittee (SOS) – 07.13.2006 - Topics: Review of Operations, eDART User Group Update, Dispatcher Training Task Force Update, Data Management Working Group Update, EMS Model Data Collection Tool, System Operator Certification, Generator Limits and Ramp Rates via ICCP, ICCP Planned Datalink Outages, Reactive Issues.
• Circulation Working Group (CIRCWG) – 07.13.2006 - Topics: Pending Long-Term Firm Requests, Provide Final Review of Documented Real-Time Circulation Trends as Contained in the Meeting Notes, Discuss Modeling Approved Trends in RTEP Cases, Review Draft Document of CLWG Recommendations to PJM Planning Committee.
• Tariff Advisory Committee (TAC) – 07.13.2006 - Topics: PJM Marginal Losses Rule Changes Under Development, PJM FTR Proposal – Excess Congestion Revenue Distribution, PJM RTEP Draft OA and Tariff Revisions – Market Efficiency Scenarios Implementation, PJM OA and Tariff Limitation Provision – Billing Errors Limitations Period, Addition of New Schedule 9 – FIN-CON.
• Transmission Expansion Advisory Committee (TEAC) – 07.11.2006 - Topics: Update to 2006 RTEP Baseline, RTO/ISO Seams Issues, Interconnection Impact Studies, Aging Infrastructure, FERC Order on Jurisdiction of Distribution Facilities Interconnection, FERC Order on Wind and Impact on Queues.
• Marginal Losses Working Group (MLWG) – 07.10.2006 - Topic: Loss Surplus Allocation Options.
• eDART XML Users Group– 07.10.2006 - Topics: Upcoming August 2nd Enhancements, Options for Resolving the Ambient Air Ticket Issue with Gen Checkout, Question and Answer Resolution Session.
• Joint eDART User Group and Data Management Working Group – 07.10.2006 – Topics: New Network Model Application, Additional Enhancements for August 2nd Release.

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Member companies and PJM beat the heat
New Record Set

July’s record heat challenged PJM and its member companies to meet new record-setting peak demands.

In one of the largest regional transmission regions—serving 51 million people—and through some of the most populated areas in the country, member companies were able to meet demand with the help of reserves, limited load management for economic reasons and in some areas, calls for public conservation.

PJM set an unofficial record for peak electricity use of 139,746 megawatts on July 17 at 5 p.m. EDT.

PJM’s previous record demand was 133,763 MW set on July 26, 2005. PJM reported that demand for electricity was met without problems and that generation supplies were adequate. One megawatt of electricity is enough to power 800-1,000 homes. The new peak usage number is subject to verification.

PJM, along with several eastern electric companies, issued a request for prudent use of electricity on July 17 and 18 in anticipation of the increased demand. Weather forecasters expected temperatures to reach upper 90s to 100-plus degrees in many areas of PJM’s region, prompting the increased use of air conditioning.

The request for conservation was issued in the service territories of Atlantic City Electric; Baltimore Gas & Electric Co.; Delmarva Power; Dominion; Jersey Central Power & Light Co. (JCP&L); Metropolitan Edison Co. (Met-Ed); PECO, an Exelon Company; Pepco; Pennsylvania Electric Co. (Penelec); PPL Electric Utilities; PSE&G and UGI Utilities, Inc.

“Our generating company members showed excellent response and availability,” said Frank J. Koza, PJM executive director-System Operations. PJM looks forward to working with its members during the remainder of the peak season.

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More PJM Member Information at Your Fingertips
Members will now have access to redlined versions of the PJM Manuals to make it easier to see what's changed in new versions of the manuals. Access them now by visiting our Web site.

Members will now also be able to load the latest PJM Committee and Training Information on their Yahoo or MSN home pages. Here are instructions on how to set up "MyMSN" or "My Yahoo" to feature this information:

• MyMSN - In MyMSN, find the "Add Content' panel, enter one of the addresses below in the box labeled "Search for content to add:" and hit Enter. In the next screen, select the Committee Calendar check box and click OK. Your content should now appear in your MyMSN home page.
• My Yahoo - In My Yahoo, click the 'Add Content' link at the bottom of the page. On the next page, click the "Add RSS by URL" link to the right of the "Find" button. On the next page, enter one of the addresses below in the box and click "Add." Your content should now appear in your My Yahoo home page.

Below are the RSS links for each calendar:

• Committee Calendar: http://www.pjm.com/calweb/rss/calendar_id/21.xml
• Training Calendar: http://www.pjm.com/calweb/rss/calendar_id/20.xml

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Department of Energy to Release Congestion Study in August

The U.S. Department of Energy (DOE) is expected to issue on August 9 its congestion study that will likely form the basis for designating U.S. transmission line corridors to help alleviate congestion. If approved by DOE, the corridors are designated National Interest Electric Transmission Corridors (NIETC).

Last March, PJM sought early designation of two corridors—one to bridge the transmission bottlenecks located in the Allegheny Mountain region and a second in the Delaware River area. It is expected that DOE will begin to take comments on PJM’s filing when it releases its congestion study.

Last month, the Federal Energy Regulatory Commission (FERC) proposed new guidelines for transmission line siting to emphasize state and local participation. This state and local role would take place before federal authorizations, including the FERC’s own “backstop” authority and environmental reviews. The FERC was given this authority by DOE.

The FERC has clarified that it can use its backstop authority only under special circumstances and only after DOE has designated a particular area as a national interest transmission corridor, and states have stopped making progress on siting.

DOE was given the authority of NIETC by Congress through the Energy Policy Act of 2005. PJM was the first regional transmission organization to file for corridor designations with DOE and is hoping to get designation of these two corridors by the end of the year.

PJM has stated that the national interest designation of the transmission paths is needed to maintain reliability, achieve economic benefits for consumers, ease electricity supply limitation in markets and diversify electricity sources and enhance energy independence.

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PJM Holds Pandemic Planning Symposium

On June 29, 2006, PJM hosted a symposium to address pandemic influenza preparedness among PJM and other electric sector members. Symposium speakers addressed the current state of Avian Flu evolution and preparations being taken by public health officials, as well as current pandemic planning activities at PJM, Constellation, Exelon, and Con Ed. Break-out sessions provided opportunities for all participants to discuss ideas and share concerns about preparing for a pandemic.

Several of the symposium presentations are available for you to view, click here.

Feedback from the participants has been very positive with many requests for a follow-up symposium later this year.

For more information, contact Ron Hedges at hedgesr@pjm.com or 610-666-4225.

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FERC Orders

July

• 07.26.2006 Docket No. ER06-319-003 (PDF)
  On July 12, 2006 the Commission issued an order in Docket No. ER06-319-003 granting rehearing for further consideration of the Commission order issued in this proceeding on May 11, 2006.
• 07.07.2006 Docket Nos. ER06-199-000, ER06-499-000, 001 (PDF)
  The Commission issued an Order on July 7, 2006 in Docket Nos. ER06-199-000, ER06-499-000 and ER06-499-001 in response to PJM's November 10, 2005 OATT revisions filed to comply with the Final Rule in Order No. 2006. PJM proposed variations from the Commission's pro forma Small Generator Interconnection Procedures. The Commission accepted in part, subject to revision, and rejected in part PJM's proposed modifications.
• 07.11.2006 Docket Nos. EL05-121-002 and EL04-135-070 (PDF)
  On July 7, 2006 the Commission issued an order in Docket Nos. EL05-121-002 and EL04-135-070 granting rehearing for further consideration of the Commission Order issued in this proceeding on May 8, 2006.
• 07.05.2006 Docket No. EL05-103-001 (PDF)
  On July 5, 2006, the Commission issued an Order in the NIPSCO complaint proceeding, Docket No. EL05-103-001 denying NIPSCO's requested rehearing of the Commission's April 21, 2006 Order that dismissed, as premature, NIPSCO's complaint against PJM and the Midwest ISO (April Order).

June

• 06.29.2006 Docket No. EL06-55-001 (PDF)
  On June 29, 2006 the Commission issued an order in Docket No. EL06-55-001 granting rehearing for further consideration of the Commission order issued in this proceeding on May 1, 2006.

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July

• 07.21.2006 Docket No. ER06-xxx-000 (PDF)
  On July 21, 2006, PJM filed at the Federal Energy Regulatory Commission: (1) a report of the recommended allocations of cost responsibility for transmission upgrades reviewed and approved by the PJM Board as part of PJM's most recent Regional Transmission Expansion Plan, and (2) revised tariff sheets to state the PJM Board recommended cost allocations in the appropriate portions of Schedule 12-Appendix of the PJM Tariff.
• 07.20.2006 ER06-1127-000 (PDF)
  On July 20, 2006, PJM filed an answer to a motion to consolidate and protests in Docket No. ER06-1127-000, relating to a transmission service agreement and construction service agreements to provide new, firm point-to-point transmission service for FirstEnergy Solutions Corp.
• 07.20.2006 ER06-1182-000 (PDF)
  On July 20, 2006, PJM filed a Motion to Intervene and Comments in Docket No. ER06-1182, in which Calumet Energy Team, LLC seeks Commission approval of its revenue requirements for providing Reactive Power from its generating facilities located near Chicago, Illinois, in the PJM region.
• 07.19.2006 ER06-1263-000 (PDF)
  On July 19, 2006, PJM submitted for filing to the FERC, revisions to the PJM Tariff, Operating Agreement, Reliability Assurance Agreement, and West Reliability Assurance Agreement. The purpose of this filing is to incorporate changes into various provisions of the Agreements, necessitated by 1) the cancellation of three separate transmission owner agreements, and 2) the establishment of the Consolidated Transmission Owners Agreement. The requested effective date is September 18, 2006.
• 07.11.2006 Docket Nos. ER06-456-000, 001, 002, 003 (PDF)
  On July 11, 2006 in Docket No. ER06-456-000 et al, PJM filed an answer to requests for clarification and rehearing in RTEP cost allocation proceeding.
• 07.10.2006 Docket No. EL06-67 (PDF)
  On Friday, July 7, 2006, PJM filed an Answer to FERC Staff's Data Requests in Chesapeake Transmission Complaint, Docket No. EL06-67.
• 07.05.2006 ER06-1131-000 (PDF)
  On July 5, 2006, PJM filed a Motion to Intervene and Comments in Docket No. ER06-1131, in which LSP-Kendall Energy, LLC seeks Commission approval of its revenue requirements for providing Reactive Power from its generating facilities located in Kendall County, Illinois, in the PJM region.
• 07.03.2006 Docket No. ER06-1218-000 (PDF)
  On July 3, 2006, PJM Interconnection, L.L.C. made an initial filing under Section 205 of the Federal Power Act of proposed Tariff and Operating Agreement revisions designed to implement long term financial transmission rights in Docket No. ER06-xxx-000.

June

• 06.30.2006 PJM Planning Letter (PDF)
  On June 30, 2006 PJM Interconnection, L.L.C. ("PJM")provided a letter to update the Federal Energy Regulatory Commission ("FERC") on PJM's planning initiatives. The letter and accompanying attachments detail developments on several items, including the Board's June 22 meeting, various transmission line proposals and economic planning.
• 06.30.2006 Docket No. RM05-5-000 (PDF)
  On June 30, 2006, PJM submitted a compliance filing and corresponding amendments to the PJM Tariff pursuant to the FERC's April 25, 2006 Final Rule, Order No. 676, amending its regulations under the Federal Power Act to incorporate by reference certain standards promulgated by the Wholesale Electric Quadrant ("WEQ") of the North American Energy Standards Board ("NAESB") in Docket RM05-5-000.
• 06.29.2006 ER06-1177-000 (PDF)
  On June 29, 2006, PJM submitted for filing revisions to Part IV of the PJM Tariff. More specifically, PJM proposes to amend the Option to Build provisions, the definitions of "Local Upgrades", the definition "Network Upgrades" and corresponding security and cost reimbursement provisions of the PJM Tariff in order to refine and clarify the process for initiating the Option to Build and the corresponding security obligations under the PJM Tariff. PJM requests an effective date of August 29, 2006.
• 06.29.2006 Docket No. ER06-406-000 (PDF)
  On June 29, 2006, in Docket No. ER06-406-000, PJM filed reply comments in response to Allegheny Energy Companies' initial comments regarding the settlement PJM filed in the proceeding regarding PJM's proposed enhancements to its demand response programs.
• 06.28.2006 ER04-375-017, ER04-375-018 (PDF)
  On June 28, 2006, PJM and the Midwest ISO filed a joint 120 day periodic report on the RTOs' progress towards a joint and common market and implementation of the JOA.

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