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:

PJM Web Site Tip
Are you having problems locating Web site content? If so, click the 'Advanced Search' link under the search box in the upper right half of your browser. The 'Search all PJM' drop down box can narrow your search to the following sections of the Web site:

• Committees
• FERC Materials
• News Releases
• PJM Manuals
• Planning
• Project Queues
• Training

We are always working to improve your experience on the PJM Web site. If you are unable to find what you are looking for, please enter your feedback on the search engine Web page in the popup box in the bottom left corner.

PJM Authorizes Construction of $1.3 Billion in Transmission Upgrades
PJM's first 15-year Regional Transmission Expansion Plan was approved by the PJM Board on June 23. The plan authorizes the construction of $1.3 billion in transmission-system upgrades and directs further studies and evaluation of $10 billion in proposed transmission projects, including high-voltage lines proposed by American Electric Power, Allegheny Power and Pepco Holdings Inc. (more)

Joint and Common Market Benefiting Stakeholders Today
The PJM and Midwest ISO (MISO) Joint and Common Market (JCM) project teams are focusing on implementing specific initiatives in response to direction following a March order from the Federal Energy Regulatory Commission (FERC). The initiatives were chosen based on their favorable cost-benefit ratios and their demonstration of efficiencies that can be achieved through the existing Joint Operating Agreement between the two grid operators. (more)

Black Start Service Working Group Update
The Black Start Service Working Group recently determined that there would be no special additional performance requirements or compensation for any non-black start “Tier Two” unit for system restoration. The working group also acted on other charter items at its recent meeting.

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
Highlights
Regulatory Reports

07.11.2006 – 07.12.2006 PJM 101: The Basics
07.18.2006 – 07.19.2006 LMP 101
07.25.2006 – 07.26.2006 Capacity 201
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

Committee Meetings:

• Markets and Reliability Committee (MRC) – 06.30.2006 - Topics: Legal Report, Black Start Services Working Group Update, Cost Development Task Force, FTR Proposal, Regional Planning Process Working Group Update, Operating Agreement Limitation Provision, Demand Response, Operating Committee Report, Planning Committee Report, Rule Changes Under Development, Market Implementation Committee Report.
• Pandemic Planning for a Resilient PJM Electric System – 06.29.2006 - Topic: Pandemic Planning Symposium to Address Pandemic Influenza Planning Preparedness Among PJM Members and Other Electric Sector Members.
• Planning Committee (PC) – 06.28.2006 - Topics: Administrative, LAS Meeting Plans, NERC Update, Regional Planning Update, Diversified Load Test for RTEP Reliability Scenario Planning, Reactive Limits in 15 Year RTEP, *Voltage Schedule Working Group.
• Marginal Losses Working Group (MLWG)– 06.28.2006 - Topic: Loss Surplus Allocation Options.
• Dispatcher Training Task Force (DTTF)– 06.27.2006 - Topics: SOS Update, eDART Update, PJM Operations Training, PJM Operational Manuals, PJM System Operator Certification Exams.
• Market Implementation Committee (MIC)– 06.27.2006 - Topics: Load Response Business Rules, CT Offers in the Day-Ahead Market, Transaction Ramp Issues, Timing Changes for OASIS (JCM), Transmission Outage Acceleration Update, Agreement Changes for Marginal Losses, Loop Flow Update, ARR Allocation Proposal, eMKT User Interface, Demand Side Response Working Group Update, Black Start Services Working Group Update, Long-Term FTR Working Group Update, Market Settlements Working Group Update, Marginal Losses Working Group Update, 120-Day Report Stakeholder Process Update.
• Small Generation Interconnection Working Group (SGIWG)– 06.26.2006 - Topics: Finalize Small Generator Technical Requirements Applicable Standard for Generators Greater than 10 MW and up to 20 MW (Attachment H-1 to PJM Manual 14B), and Finalize Attachment H-1 Annex #1 and #2 Documents.
• Transmission Owners Agreement-Administrative Committee (TOA-AC) -Administrative Committee – 06.22.2006 - Topics: TOA-AC 2006 Work Plan Update, Legal Issues Team Update, RTEP, 500-230kV Transformer Replacement Strategy, Finance Committee Update, RFC Update.
• Data Management Working Group (DMWG) – 06.22.2006 - Topics: EMS Model Updates and QA – Manual M03A, Summer 2006 Model Update, New Method for Submitting EMS Model Changes, Markets Model Update, Revisions to eDATA, Internet SCADA.
• Systems Information Subcommittee (SIS)– 06.21.2006 - Topics: Member Company Roundtable, PJM Operations Update, Inter-RTO Activities, eSuite Update, PJMnet Project Update, Electric Utility Security Issues, PJM Advanced Control Center Project Update, Communication and System Issues, Metrics, eTUG.
• Marginal Losses Working Group (MLWG) – 06.16.2006 - Topics: Loss Surplus Allocation Options, EDC Accounting examples.
• Black Start Service Working Group – 06.16.2006 - Topics: Black Start Manual Changes, Tier 2 Black Start, Status of BSSWG Assignments.
• 120-Day Report Meeting – 06.16.2006 - Topics: Review of the 120-Day Report, Open Discussion.
• eDart XML User’s Group – 06.15.2006 - Topics: May Enhancements Verification, Data Dictionary Continuation for XML Documentation, Question and Answer Resolution Session.
• Demand Side Response Working Group (DSRWG) – 06.15.2006 - Topics: Demand Side Response Reports, eLoad Response Update, Metering Issues, Provision of Registered Site Information To State Commissions – Proposed Business Rule, Price Response Load Survey – 2005 Results.
• Nuclear Generation Owners/Operators User Group (NGOUG) – 06.15.2006 - Topics: 2005 Reactive Testing, Generic Letter, EMS Modeling/Plant Notifications, Other Old/New Discussion Items, Meeting Agenda Planning.
• Operating Committee (OC) – 06.13.2006 - Topics: Review of Operations, Black Start Services, Demand Side Response, System Operations Subcommittee, NERC Update, ReliabilityFirst Update.
• Regional Planning Process Working Group (RPPWG) – 06.09.2006 - Topics: Discuss/vote on Sending Market Efficiency OA/Tariff Revisions to MRC for Endorsement, Disposition of Remaining Reliability Items, “At Risk” Generation, Cost Allocation.
• System Operations Subcommittee (SOS) – 06.09.2006 - Topics: Review of Operations, eDART Update, System Operator Certification, Emergency Procedures Drill Summary, Dispatcher Training Task Force, Advanced Control Center Project, Small Generation Interconnection Pilot Program, Reactive Issues, Manual Changes, IRC Reporting.
• Interconnection Project Management Working Group (IPMWG) – 06.08.2006 - Topics: Distribution Interconnection Jurisdiction – Status of Implementation Plan, Review of Plan for Option to Build OATT Revisions Filing.
• Market Settlements Working Group (MSWG) – 06.08.2006 - Topics: Settlement System Replacement Project Update, Marginal Losses Implementation, FERC EQR Reporting, PDF Billing Statement Implementation Additional eSchedules Report Enhancements, Administrative Items to include: Proposed eSchedules and eMTR Deadline Extensions, Termination of MAAC Charges, Stated Rate Implementation, Retroactive Schedule 13 Changes, SECA Settlement Orders.
• MISO-PJM Joint and Common Stakeholders Working Group– 06.02.2006 - Topics: Update on Joint and Common Market Initiatives, Single Economic Dispatch Production Cost Study, Additional Potential JCM Initiatives, Next Steps.
• Members Committee (MC) – 06.01.2006 - Topics: Announce Sector Selections of New Members, Comments by the President of ReliabilityFirst, Long-Term Transmission Rights Proposal, Marginal Losses, Market Operations Report, System Operations Report, OPSI Interactions, Regulatory Activities, Markets and Reliability Committee Report, Members Committee 2006 Annual Plan, Finance Committee.
  

Return to Top

PJM Authorizes Construction of $1.3 Billion in Transmission Upgrades

PJM's first 15-year Regional Transmission Expansion Plan was approved by the PJM Board on June 23. The plan authorizes the construction of $1.3 billion in transmission-system upgrades and directs further studies and evaluation of $10 billion in proposed transmission projects, including high-voltage lines proposed by American Electric Power, Allegheny Power and Pepco Holdings Inc.

The following is the text of the news release PJM issued June 23 on the Board action:

The PJM Interconnection Board today approved its first 15-year regional electric transmission plan. The plan is designed to maintain the reliability of the PJM area transmission system, which serves 51 million people in 13 states and the District of Columbia.

As part of the plan, PJM authorized construction of $1.3 billion in electric transmission upgrades, including a 240-mile, 500-kilovolt transmission line from southwestern Pennsylvania to Virginia to be constructed by Allegheny Power and Dominion. The total plan upgrades will ensure continued grid reliability through 2011 and are estimated to reduce congestion costs by $200 million to $300 million annually.

To meet long-term needs through 2021, PJM directed additional studies and evaluation of 10 significant transmission line proposals totaling $10 billion of potential new investment, including the high-voltage transmission line projects proposed by American Electric Power, Allegheny Power and Pepco Holdings Inc. Those proposals build on the solutions identified in PJM’s Mountaineer concept, unveiled in May 2005, for new transmission lines and potential corridors for transmission in the eastern half of the PJM region.

“The Board of Managers' approval of the Regional Transmission Expansion Plan (RTEP) will result in additional investments in backbone transmission over the 15-year period and could resolve more than $1 billion in annual congestion costs,” noted Phillip G. Harris, PJM president and chief executive officer. Transmission owners for these projects will proceed with preliminary siting evaluations, initial environmental impact assessment work and potentially right-of-way acquisition. PJM will continue to evaluate the projects.

PJM’s RTEP includes upgrades and new projects to maintain system reliability and to interconnect new electric generation. PJM has expanded its planning horizon from five years to 15 years, and the current plan is the first with the longer period. The plan considers the growth and changes in the broad, multi-state region. By not being limited to considering just one utility’s service territory, the PJM planning process can determine the most effective and cost-efficient transmission solution no matter where it is located in the region.

“Regional transmission planning works,” said Audrey A. Zibelman, PJM’s executive vice president and chief operating officer. “It’s stimulating the necessary investments in the grid to maintain reliability and to improve economic efficiency. We’re excited about our first 15-year regional transmission plan and believe it’s a big step not only for PJM but for the entire industry. We especially appreciate the hard work and contributions of our members over the last six months.”

PJM has authorized more than $4 billion of accumulated transmission investment since its planning process began six years ago, resulting in an additional 18,717 megawatts of new generation being interconnected, with 3,777 megawatts of generation now under construction. More than a half-billion dollars in transmission projects have been completed.

“Our regional planning process has evolved to address different needs in response to changing conditions,” Zibelman said. “The process has grown from one that primarily addressed reliability-driven upgrades and generation interconnection to the new, long-term planning effort that can better address economic efficiency and major transmission additions.”

Return to Top

Joint and Common Market Benefiting Stakeholders Today

The PJM and Midwest ISO (MISO) Joint and Common Market (JCM) project teams are focusing on implementing specific initiatives in response to direction following a March order from the Federal Energy Regulatory Commission (FERC). The initiatives were chosen based on their favorable cost-benefit ratios and their demonstration of efficiencies that can be achieved through the existing Joint Operating Agreement between the two grid operators.

PJM and MISO have made significant progress toward implementing the specific initiatives identified for 2007. The continued success of PJM and MISO markets has also resulted in significant benefits to stakeholders. Among the completed items is the production cost study to quantify the benefits of having a single PJM/MISO economic dispatch.

Currently, there are several stakeholder-supported initiatives that have been implemented, including the MISO Ramp Viewer, Moving Joint-Owned Units between RTOs, Common Search Engine and the Joint 2011 Planning Base System Model.

On May 17, FERC ordered the implementation of Marginal Losses in PJM. This implementation will help reduce the hurdle rate for transactions between the RTOs.

In the past few months, PJM and MISO have also committed to exploring several additional initiatives which have been identified by stakeholders. These include exploring mechanisms that would permit the transfer of economic energy during times of significant price deltas between the Midwest ISO and PJM proxy buses.

PJM and MISO filed a joint RTO JCM status report on June 28. The filing provided an update on previously discussed initiatives, newly proposed initiatives and the single dispatch production cost study.

Return to Top

Black Start Service Working Group Update

The Black Start Service Working Group recently determined that there would be no special additional performance requirements or compensation for any non-black start “Tier Two” unit for system restoration. The working group also acted on other charter items at its recent meeting.

The working group’s charter was to evaluate whether or not performance requirements and compensation for “Tier Two” Black Start Service generators needed to be changed and to present recommendations to the Systems Operations Services-Transmission (SOS-T) Committee. The charter also included evaluating criteria for assessing zonal critical Black Start conditions, evaluating the inclusion of new units in Black Start Service and reviewing compensation incentives for new and existing Black Start generators.

The SOS-T defined the criteria for assessing zonal critical Black Start for each transmission zone to support system restoration goals. The requirement for each zone is the sum of critical steam cranking power, critical infrastructure load and nuclear off-site load requirements.

The working group also recommended accepting the revisions it made to the PJM Manual on Generator Operational (M14D) requirements on adding new units into the Black Start Service.

Cost compensation and incentive concerns for new and existing black start generators were addressed by incorporating Capital Recovery Factors into the actual cost recovery methodology allowed under Schedule 6A and documented in M14D . The Working Group members requested additional time to review the material and to determine if concerns are addressed.

Black Start refers to the ability of certain generating units to come on line without power from another source to aid in the restoration of the electrical system following a system disturbance. Only certain generating units have this ability and those units participate in PJM’s Black Start Service.

Return to Top

FERC Orders

June

• 06.26.2006 Docket Nos. EL05-148-001 and ER05-1410-001 (PDF)
  On June 19, 2006 the Commission issued an order in Docket Nos. EL05-148-001 and ER05-1410-001 granting rehearing for further consideration in this proceeding on April 20, 2006.
• 06.19.2006 Docket Nos. ER06-880-000, ER06-456-000, 001, 002 (PDF)
  On June 19, 2006, the Commission issued an order in the PJM Transmission Owners? Schedule 12 proceeding (Docket No. ER06-880-000) accepting for filing the PJM TOs revised Schedule 12 PJM Open Access Transmission Tariff (PJM OATT) sheets filed on April 21, 2006, and suspended them, to become effective June 20, 2006, subject to refund. The Commission also consolidated this proceeding with the pending RTEPP proceedings in Docket Nos. ER06-456-000, -001, and -002 for hearing and settlement judge procedures.
• 06.14.2006 ER05-6-054, EL04-135-056, EL02-111-074, EL03-212-070 (PDF)
  On June 14, 2006, the Commission issued an order in the Cross Border Reliability Cost Allocation in Docket No. ER05-6, et. al. in response to the joint PJM and PJM Transmission Owner ("PJM Parties") section 205 and November 21, 2005 Order compliance filing of April 20, 2006 (the Midwest ISO and the Midwest ISO Transmission Owners filed a competing proposal on the same date as a compliance filing only). In this Order, the Commission rejected the PJM Parties' submittal under Section 205 of the Federal Power Act but the Commission will address the PJM Parties' filing to the extent that it was also made in compliance with the Commission's November 21, 2005 Order issued in this proceeding.

May

• 05.31.2006 ER05-6-023 (PDF)
  On May 31, 2006, the Commission issued a Notice of Extension of Time for PJM and the Midwest ISO to file the cross-border economic planning cost allocation proposal required by the Commission's order issued on November 21, 2005, in Docket No. ER05-6-023, et. al. to and including December 1, 2006.
• 05.26.2006 ER05-1181 (PDF)
  On May 26, 2006, the Commission approved and accepted for filing the settlement filed in Docket No. ER05-1181 (stated rate proceeding), including revised PJM Tariff sheets, which implements the change in the rate design of PJM's administrative cost recovery from formula to stated rates.
• 05.26.2006 ER06-456-000 (PDF)
  On May 26, 2006, in Docket No. ER06-456-000, the Commission issued an order conditionally accepting for filing, suspending, subject to refund, to become effective May 30, 2006, revised sheets of the PJM Tariff reflecting allocations of cost responsibility to responsible parties for RTEP upgrades. The Commission set for hearing allocations of specific RTEP upgrade projects where parties have raised specific issues of fact. The Commission, however, explicitly excludes from the issues set for hearing "general objections to PJM's proposed allocation or PJM's allocation methodology."

Return to Top

June

• 06.26.2006 Docket No. RM06-16-000 (PDF) On June 26, 2006, PJM and the Midwest ISO filed comments in response to the FERC Staff’s May 11, 2006 Preliminary Assessment of NERC’s Proposed Mandatory Reliability Standards (Staff Report). PJM joined in section A of these comments related to discrimination in the application of the TLR standard.
• 06.26.2006 Docket No. ER05-1181-000 (PDF) On June 26, 2006 in Docket No. ER05-1181, PJM submitted a compliance filing to correct the designations on certain PJM Tariff sheets filed as part of a settlement agreement in the stated rate proceeding.
• 06.26.2006 Docket No. AD05-17-000 (PDF) On June 26, 2006, the ISO/RTO Council submitted to FERC and the inter-agency task force on competition its comments on the Task Force's draft report. The Council urged the final Report to underscore the many studies and analyses that have shown the benefit of competitive wholesale markets. The Council also directly addressed criticism of a single clearing price market by providing evidence of flaws in a "pay as bid" system.
• 06.26.2006 Docket No. RM06-16-000 (PDF) On June 26, 2006, the ISO/RTO Council submitted to FERC a detailed matrix concerning each of NERC's proposed Version 0 standards. The Council also proposed a procedural path for FERC including categorization of standards and criteria to separate the "what" vs. the "how" of reliability standards and specific criteria to test the reasonableness of proposed standards.
• 06.26.2006 Docket Nos. ER06-826-000 and ER06-826-001 (PDF) On June 26, 2006, PJM filed with the Commission a Motion for Leave to File Answer and Answer to protests and comments filed in Docket Nos. ER06-826-000 and ER06-826-001.
• 06.23.2006 Docket Nos. ER05-1410-000, EL05-148-000 (PDF) On June 23, 2006, PJM filed a motion asking the Commission to accept for filing one day late its post-technical conference comments in Docket Nos. EL05-148-000 and ER05-1410-000.
• 06.22.2006 ER05-1410-000, EL05-148-000 (PDF) On June 22, 2006, PJM filed a corrected copy of the supplemental affidavit of Andrew L. Ott dated May 26, 2006, filed for the technical conference on RPM in Docket Nos. ER05-1410 and EL05-148, to edit minor typographical and computing errors.
• 06.22.2006 RM06-10-000 (PDF) PJM has submitted with FERC, today, June 22, 2006, Supplemental Comments in the matter of Docket RM06-10. The Comments are submitted in response to those comments filed by EEI with FERC on May 25, 2006.
• 06.22.2006 Docket Nos. EL06-67-000, ER06-1127-000 (PDF) On June 22, 2006, the Commission issued a letter order in Docket Nos. EL06-67-000 and ER06-1127-000 requesting that PJM provide additional information regarding changes from the impact study to the facilities study performed in March 2006. A response is due within 15 days of the date of the letter.
• 06.22.2006 Docket Nos. ER05-1410-000, EL05-148-000 (PDF) On June 22, 2006, PJM filed Comments in Docket Nos. ER05-1410 and EL05-148 on FERC's June 7-8, 2006 Technical Conference, which addressed the details of the variable resource requirement curve and the long-term fixed resource requirement alternative under PJM's Reliability Pricing Model.
• 06.20.2006 Docket No. ER06-954-000 (PDF) On June 20, 2006, in Docket No. ER06-954-000, PJM filed an answer to a motion to consolidate and protests filed in the proceeding regarding PJM's proposed allocations of cost responsibility for upgrades included in PJM's most recent Regional Transmission Expansion Plan.
• 06.16.2006 Docket Nos. ER05-1410-000, EL05-148-000 (PDF) On June 16, 2006, PJM filed in Docket Nos. ER05-1410 and EL05-148 its Reply Comments on the matters set for paper hearing concerning RPM. In its reply comments, PJM shows why the elements of RPM set for paper hearing, i.e., the LDAs, auction commitment duration, transmission participation in the RPM auctions, and the market power mitigation measures, are just and reasonable.
• 06.14.2006 Docket No. ER06-000 (PDF) On June 14, 2006 PJM Interconnection, L.L.C. submitted for filing with FERC revisions to Schedule 2 of the PJM Tariff to reflect the reallocation of Allegheny Energy Supply Company, LLC's and Monongahela Power Company's Reactive Power revenue requirements associated with a generating facility located in Bath County, Virginia.
• 06.12.2006 Docket No. ER06-993-000 (PDF) On Monday, June 12, 2006, PJM filed a Motion with FERC to Intervene Out-of-Time in the cost-of-service recovery rates for a 244-MW combined-cycle generating facility in the Brunot Island Generating Station; Docket Number ER06-993.
• 06.09.2006 Docket No. ER06-657-000, 001 (PDF) On June 9, 2006, the Commission issued an order in Docket No. ER06-657-000 and ER06-657-001 finding that it lacked jurisdiction over the interconnection because it is an interconnection to PPL EU's local distribution system. Because no other generating facilities that engage in wholesale sales were interconnected to the line prior to the new interconnection request the Commission lacks jurisdiction of the interconnection. The Commission therefore, rejected the filing of the interconnection service agreement and construction service agreement concerning the interconnection.
• 06.06.2006 EL05-121-000 (PDF) On June 6, 2006, PJM Interconnection, L.L.C. filed at FERC a Reply Brief in Docket No. EL05-121-000 (License Plate Rate Proceeding).
• 06.05.2006 Docket No. EL04-57-002 (PDF) On June 5, 2006, PJM filed a reply brief in FPL Energy Marcus Hook v. PJM Interconnection, L.L.C., Docket No. EL04-57-002.
• 06.02.2006 Docket No. EL06-55-000 (PDF) On Friday June 2, 2006, PJM Interconnection L.L.C. filed with the Commission a Motion for Postponement of Effective Date and Request for Shortened Answer Time and Expedited Commission Ruling in the matter of Docket Number EL06-55.
• 06.01.2006 EL06-67-000 (PDF) On June 1, 2006, PJM filed at FERC the Procedural Motion of PJM Interconnection, L.L.C. to Strike Unauthorized Answer, in the Chesapeake Transmission, L.L.C. v. PJM complaint proceeding, Docket No. EL06-67-000.

Return to Top