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:

Newest RTEP Report Released; Coverage of State Plans Enhanced
PJM's System Planning Division has published a comprehensive Regional Transmission Expansion Plan (RTEP) that for the first time conveys the planning activity recommended in each state to maintain system reliability and robust, transparent markets. (more)

FERC Supports Joint and Common Market Plans
The Federal Energy Regulatory Commission (FERC) recently reaffirmed the Joint and Common Market (JCM) approach as detailed in an October filing by PJM and the Midwest Independent Transmission System Operator (Midwest ISO). (more)

Governance Working Group Update
The Governance Working Group will be meeting on April 11, 2006 in Wilmington to endorse the charter the group has been working on and to hear reports from its subgroups. Once the group endorses the charter, it will be voted on by the Member Committee in November, 2006. (more)

Time is running out to register for the 2006 PJM Annual Members Meeting in May
The registration deadline is drawing near for the 2006 PJM Annual Meeting of Members to be held May 2- 4 at the Hyatt Regency Chesapeake Bay, Cambridge, Md. The program will be similar to last year's event starting with the Markets and Reliability Committee meeting on Tuesday, May 2, 2006 and ending on Thursday, May 4, 2006 with the Members Committee Meeting and buffet luncheon. (more)

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
Highlights
Regulatory Reports

Committee Meetings:

• Long-Term FTR Working Group (LTFTRWG) – 03.30.2006 - Topics: Draft Business Rules for Long-Term Transmission Rights Allocation Proposal, Equivalency Test for Stage 1 Resource Substitution, Cost/Benefit Allocation of Upgrade to Support Stage 1A ARRS, Relationship Between ARRS and Transmission Rates.
• Planning Committee (PC) – 03.29.2006 - Topics: SPS Procedure Modifications, Technical Working Group, MMWG Case Development, East Windsor 500/230 KV Transformer Failure, Aging Infrastructure Project Update.
• Markets Implementation Committee (MIC) – 03.28.2006 - Topics: Special Protection Schemes, Automatic Sectionalizing, Black Start Service Working Group Update, FTR Proposal, 3-Pivotal Supplier Test and Scarcity Pricing Implementation, Expansion of Bid/Offer Data Postings Update, FTR Reconfiguration Proposal, Non-Synchronized Reserve Market, DSR In Ancillary Services Market, eMKT User Interface, First Energy Transmission Outage Posting, Joint and Common Market Update, Demand Side Response Working Group Update, Reserves Market Working Group Update.
• Interconnection Project Management Working Group (IPMWG) – 03.28.2006 - Topics: Option to Build Proposed Process Revisions and Supporting OATT Revisions, Discussion on 2/22/06 FERC Order Related to FERC Jurisdiction Over Distribution Facility Interconnections, Review of PJM Manual M14C Revision Nos. 3 and 4, PJM Website Changes.
• Small Generation Interconnection Working Group (SGIWG) – 03.27.2006 - Topics: Review the Status of the February FERC Order Regarding Jurisdictional Consideration for Interconnection Onto Distribution Systems, Confirm the Final Version of Attachment H, Discuss the Status Internet Based SCADA Option and Metrics to Determine Successful Demonstration, Demonstrate SGIWG Hardware to Be Installed at Frey Farms Test Site, Kickoff for the 10-20MW Standard.
• Transmission Owners Agreement-Administrative Committee (TOA-AC) – 03.24.2006 - Topics: Update on Cost Recovery Initiative, Posting of Critical Documents, Tariff Working Group Update, Legal Issues Team Update, Finance Committee Update, 500/230 kV Transformer Specifications, Other Business.
• Operating Committee (OC) – 03.21.2006 - Topics: Review of Operations, System Operations Subcommittee (SOS), PJM Manual 12 Section 4 Changes – Regulation, Event Investigation Process, Committee Background on Automatic Sectionalizing, Spring and Summer Operating Reserve Objective, Markets and Reliability Committee, NERC / Reliability First / MAAC Update, NERC Cyber Security Update, System Information Services, OC Action Items.
• Regional Planning Process Working Group (RPPWG) – 03.17.2006 - Topics: Market Efficiency, “At Risk” Generation.
• Members Committee (MC)– 03.16.2006 - Topics: Market Operations Report, System Operations Report, OPSI Interactions, Customer Survey Report, Governance Working Group Report, Markets and Reliability Committee Report, Legal Report, Members Committee 2006 Annual Plan, MAAC Meeting.
• Nuclear Generation Owners/Operators User Group (NGOUG) – 03.16.2006 - Topics: NRC Generic Letter Responses.
• Markets & Reliability Committee (MRC) – 03.16.2006 - Topics: Demand Side Response Business Rules, Automatic Sectionalizing, Non-Firm Willing to Pay Congestion, Notice of Inquiry on Transmission Corridors, State of the Market Report, Regional Planning Process Working Group Update, RTEP Overview, Planning Committee Report, Markets Implementation Committee Report, State of the Market Report Optional Agenda Item - a detailed session on the 2005 State of the Market Report.
• eDart XML User’s Group (eDartXMLUG) – 03.15.2006 - Topics: TBD
• System Information Subcommittee (SIS) – 03.15.2006 - Topics: PJM Operations, Inter-RTO Activities, eSUITE update, PJMnet Project, Electric Utility Security Issues, Communication and System Issues, Metrics, ETUG, Action Items.
• Reserve Markets Working Group (RMWG) – 03.14.2006 - Topics: Operating Reserves, Non-Synchronized Reserve Market.
• Demand Side Response Working Group (DSRWG) – 03.09.2006 - Topics: Demand Side Response Market Initiatives Update, Demand Resources in Ancillary Services: Implementation and Training Update, Report from the Reserves Markets Working Group, Demand Side Response Reports, Demand Response Incentives: Planning After 2007, Report of Study – Analysis of the Impact of Demand Curtailment on Power Prices.
• Cross Border Economic Planning – 03.08.2006 - Topics: Joint MISO/PJM Meeting on Cross Border Allocation.
• System Operations Subcommittee – 03.08.2006 - Topics: Review of Operations, Reactive Issues, eDART Update, DTTF, System Operator Certification, Overview of Three Pivotal Supplier Test, Automatic Sectionalizing Discussion, Operational Performance Metrics, Spring Restoration Drill Documentation, Future Agenda Items.
• Black Start Services Working Group (BSSWG) –03.07.2006 - Topics: Black Start Process Manual Changes from SOS-T Proposal, Follow-up Discussion on Tier 2 Black Start, Follow-up Discussion on Black Start Compensation, Timeline for Endorsement.
• MISO-PJM Joint and Common Stakeholders Working Group – 03.03.2006 - Topics: Update on Joint and Common Market Issues, Single Economic Dispatch Production Cost Study, Additional Potential JCM Issues, Next Steps.
• Governance Working Group (GWG) – 03.01.2006 - Topics: Draft Charter Review and Endorsement, Working Group Work Plan, Process and Schedule Review and Endorsement, Baseline Presentations (PJM and Benchmark across other RTO/ISO).
• Transmission Expansion Advisory Committee (TEAC) – 03.01.2006 - Topics: Discussion of Baseline Upgrades, Interconnection Impact Studies, Aging Infrastructure, Overview of RTEP Level 2 Documentation, AEP 765kV Project.
• Market Implementation Committee (MIC) –02.27.2006 - Topics: Credit Screening for All Participants in Monthly FTR Auctions, Long-Term FTR Working Group, Creation of Additional PJM Trading Hub, Willing to Pay Congestion Transmission Service, Operating Reserve Changes, Special Protection Schemes, FTR Proposal, AEP Proposal (New Transmission Line), Load Forecast Error Tracking, 3-Pivotal Supplier Test Implementation – Overview, Expansion of Bid/Offer Data Postings, Black Start Service Working Group Update, Automatic Sectionalizing, eMKT User Interface, Demand Side Response Working Group Update, Reserves Markets Working Group Update, Market Settlements Working Group Update.

Return to Top

Newest RTEP Report Released; Coverage of State Plans Enhanced
PJM's System Planning Division has published a comprehensive Regional Transmission Expansion Plan (RTEP) that for the first time conveys the planning activity recommended in each state to maintain system reliability and robust, transparent markets. The 196-page document, complete with color maps and charts, explains the rationale behind transmission system upgrades and follows a document issued last summer to explain the RTEP Process.

The enhanced report, which reflects the outcome of collaborative planning process efforts of PJM and its more than 400 members, shows the link among system drivers, such as load growth and generation activities; system limitations including congestion; and identified transmission upgrades. To date, PJM's planning efforts have identified more than 700 upgrades and expansion projects to enhance system reliability, totaling nearly $2 billion. Click here for the new report.

FERC Supports Joint and Common Market Plans
The Federal Energy Regulatory Commission (FERC) recently reaffirmed the Joint and Common Market (JCM) approach as detailed in an October filing by PJM and the Midwest Independent Transmission System Operator (Midwest ISO).

The filing was opposed by several Wisconsin utilities and the Wisconsin commission who argued the JCM should be implemented as a single market with a single dispatch over the combined Midwest ISO and PJM territories. The two regional transmission organizations (RTOs) had told the FERC that the benefits of a single market and dispatch are being achieved by the coordinated operations of the two RTO markets together with the initiatives identified in the October filing.

The RTOs said a joint stakeholder process had determined that a single market operating under a single unit commitment and dispatch would be more costly and provide limited benefits beyond those already being achieved with the Joint Operating Agreement (JOA) between the Midwest ISO and PJM.

The filing described measures proposed by a joint group of Midwest ISO and PJM staff, who conducted detailed cost-benefit analyses to determine those that were most cost-effective. The filing estimated a $5 million cost to implement the newly identified initiatives in addition to the $28 million already spent on reliability and coordination initiatives accomplished by the JOA. The enhanced coordination has produced annual benefits of more than $50 million, the filing noted. Estimated cost of implementing the single market was set at $105 million, in addition to ongoing operating costs of $7 million a year.

An ongoing stakeholder process involving both RTOs will monitor implementation of the initiatives and consider other cost-savings initiatives that may be proposed by stakeholders as technology improves.

Governance Working Group Update
The Governance Working Group will be meeting on April 11, 2006 in Wilmington to endorse the charter the group has been working on and to hear reports from its subgroups. Once the group endorses the charter, it will be voted on by the Member Committee in November, 2006.

Although newly formed this winter, the group is continuing the work done by a previous group that focused on structural changes to the stakeholder process. This group, which includes representatives from each sector and is open to other members, is focusing on sector definition, voting and other issues. Among the other issues the group addresses are sector operations, working group operations and evaluating other governance models. For more information on the Governance Working Group, click here.

Time is running out to register for the 2006 PJM Annual Members Meeting in May
The registration deadline is drawing near for the 2006 PJM Annual Meeting of Members to be held May 2- 4 at the Hyatt Regency Chesapeake Bay, Cambridge, Md. The program will be similar to last year's event starting with the Markets and Reliability Committee meeting on Tuesday, May 2, 2006 and ending on Thursday, May 4, 2006 with the Members Committee Meeting and buffet luncheon.

On Wednesday, May 3, 2006, members will attend the General Session followed by lunch and leisure activities. Recent registrants are reminded that the golf tournament is full and they will have to choose an alternative leisure activity. To register for the meeting, click here. Also, registrants are reminded to make room reservations as sson as possible by calling the Hyatt directly at 800.233.1234 or 410.901.1234. Please mention PJM when making room reservations.

Return to Top

FERC Orders

March

• 03.22.2006 Docket No. ER06-594-000 (PDF) On March 22, 2006, FERC issued an order in Docket No. ER06-594-000 accepting PJM's revisions to its Credit Policy as filed February 1, 2006, to become effective April 1, 2006.
• 03.17.2006 Docket Nos. ER06-487-000, ER06-488-000, ER06-489-000, ER06-490-000 (PDF) The Commission issued an order on March 17, 2006, accepting the PJM Consolidated TO Agreement filed on January 17, 2006, effective March 19, 2006, subject to revision and a compliance filing to be made within 30 days of the date of this order..
• 03.16.2006 Docket Nos. EL06-20-000, EL06-49-000 (PDF) On March 16, 2006, the Commission issued an order dismissing WPS's complaints and accepting the MISO - PJM October 31, 2005 Joint and Common Market informational filing. In addition, the Commission changed the reporting requirement on the Joint and Common Market from every 60 days to every 120 days..
• 03.16.2006 Docket No. ER06-28-002 (PDF) On March 16, 2006, the Commission issued an order accepting PJM's tariff revisions to remove section 54.7.1.3 and related references in section 54.7.1.2 of the PJM Tariff filed on February 10, 2006 in compliance with the Commission's January 26, 2006 letter order in Docket No. ER06-28.

Return to Top

March

• 03.27.2006 Docket No. ER06-509-000 (PDF) On March 27, 2006, in Docket No. ER06-509-000, PJM submitted a Response to the Commission's Request for Additional Information issued March 13, 2006, re: an Unexecuted Interconnection Service Agreement Among PJM, Boone Heritage Wind Farm and Commonwealth Edison Company.
• 03.27.2006 Docket Nos. ER05-6, EL04-135, EL02-111, EL03-212 (PDF) On March 27, 2006, in Docket Nos. ER05-6, EL04-135, EL02-111 and EL03-212, the PJM Transmission Owners and PJM filed an Answer in Opposition to the Motion of Green Mountain Energy Company for Partial Summary Disposition.
• 03.27.2006 Docket No. ER06-406 (PDF) On March 27, 2006, PJM Interconnection, L.L.C. filed revisions to the PJM Tariff and Operating Agreement regarding the market rules concerning demand response in compliance with the order issued by the Federal Energy Regulatory Commission on February 24, 2006 in Docket No. ER06-406 (PJM Interconnection, L.L.C., 114 FERC P 61,201 (2006)).
• 03.24.2006 Docket No. ER06-649-000 (PDF) On March 24, 2006 PJM filed answer to the Protest of PSE&G, in Docket No. ER06-649. The Answer clarifies the allocation of costs to the East Coast Power, L.L.C. interconnection project in the Interconnection Service Agreement and Construction Service Agreement.
• 03.24.2006 Docket Nos. RM06-8-000, AD05-7-000 (PDF) On March 24, 2006, PJM submitted a Rulemaking Comment in Docket Nos. RM06-8-000 and AD05-7-000, Long Term Firm Transmission Rights in Organized Electricity Markets and Long Term Transmission Rights in Markets Operated by Regional Transmission Organizations and Independent System Operators.
• 03.22.2006 Docket No. EL05-145-000 (PDF) On March 22, 2006, PJM and Pepco filed a joint response to the FERC's March 6, 2006 request for information in Docket No. EL05-145-000. The document posted is the redacted, public version of the joint response.
• 03.22.2006 Docket No. EL06-55-000 (PDF) On March 22, 2006, PJM submitted an Answer in Docket No. EL06-55-000 to the Complaint filed with the Commission by all electric utility subsidiaries of Pepco Holdings Inc. regarding the handling of the stakeholder process for implementation of marginal losses pursuant to Section 3.2.5(a) of Schedule 1 of the Operating Agreement.
• 03.21.2006 Docket Nos. ER05-6-023, EL04-135-025, EL02-111-043, EL03-212-039 (PDF) On March 21, 2006, PJM, the Midwest ISO, the Midwest ISO Transmission Owners, the Midwest Stand-Alone Transmission Companies and the PJM Transmission Owners jointly submitted revisions to the Joint Operating Agreement between the Midwest ISO and PJM in compliance with the FERC's directives to provide supplemental information regarding the joint RTO planning model in Docket Nos. ER05-6-023, EL04-135-025, EL02-111-043, and EL03-212-039.
• 03.20.2006 Docket Nos. ER05-6-023, EL04-135-025, EL02-111-043, EL03-212-039 Docket Nos. ER05-6-023, EL04-135-025, EL02-111-043, EL03-212-039 (PDF) On March 20, 2006, PJM and the Midwest ISO filed a joint Motion in the Cross-Border Cost Allocation Proceeding (Docket Nos. ER05-6-023, EL04-135-025, EL02-111-043, EL03-212-039), as amended by an Errata filed on March 21,2006, for a 21 day extension of time, until April 11, 2006, to submit a portion of the filing required by the Commission’s November 21, 2005 Order.
• 03.14.2006 Docket No. ER06-499-000 (PDF) On March 14, 2006 PJM Interconnection, L.L.C. submitted for filing an amendment to its January 18, 2006 filing in Docket No. ER06-499 regarding the requirements for the interconnection of wind power generation. The amendment was filed to accommodate the change in effective date of certain provisions from January 18, 2006 to October 14, 2005 and to incorporate the wind powered generation interconnection provisions into the current effective Tariff.
• 03.13.2006 Docket No. ER06-319-000 (PDF) On March 13, 2006, PJM Interconnection, L.L.C. filed at FERC a compliance filing in Docket No. ER06-319-000 with regard to revisions to Schedule 2 of the PJM Open Access Transmission Tariff.
• 03.13.2006 Docket Nos. RM06-8-000, AD05-7-000 (PDF) On February 2, 2006 the Federal Energy Regulatory Commission issued a Notice of Proposed Rulemaking (NOPR) on Long Term Firm Transmission Rights in Organized Electricity Markets and Long Term Transmission Rights in Market Operated by Regional Transmission Organizations and Independent System Operators in Docket Nos. RM06-8-000 and AD05-7-000, respectively. Please be advised that on March 13, 2006 PJM Interconnection, L.L.C. filed comments on the NOPR.
• 03.10.2006 Docket No. ER05-1181-000 (PDF) On March 10, 2006, PJM notified the Commission that it is extending the proposed effective date of its stated rates filing in Docket No. ER05-1181 from April 1, 2006 to May 1, 2006.
• 03.07.2006 Docket No. EL05-103-000 (PDF) On March 7, 2006, in Docket No. EL05-103-000, Midwest ISO and PJM provided an update on the final report as directed by FERC in the Commission's 6/27/2005 Order. This update provided recommendations for upgrading facilities to address the problems identified in the Transmission Study.
• 03.03.2006 Docket No. ER06-622-000 (PDF) On March 3, 2006, PJM filed a Motion to Intervene in Docket No. ER06-622, in which UGI Development Company, on behalf of Hunlock Creek Energy Ventures, seeks Commission approval of its revenue requirements for providing Reactive Power from generation resources located in Hunlock Creek, Pennsylvania in the PJM region.
• 03.03.2006 Docket No. ER06-626-000 (PDF) On March 3, 2006, PJM filed a Motion to Intervene in Docket No. ER06-626, 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 generation resources located in Hunlock Creek, Pennsylvania, in the PJM region.
• 03.03.2006 Docket No. ER06-701-000 (PDF) On March 3, 2006, PJM Interconnection, L.L.C. submitted for filing revisions to Schedule 2 of the PJM Open Access Transmission Tariff to reflect the revenue requirements to be paid to the following entities for cost-based Reactive Support and Voltage Control from Generation Sources Service in the PJM region: (i) Allegheny Energy Supply Company, LLC for Reactive Power from the Buchanan Generating Plant located in Buchanan County, Virginia; (ii) AE Supply and UGI Development Company for Reactive Power from the Hunlock Generating Station located near Wilkes-Barre, Pennsylvania; (iii) Old Dominion Electric Cooperative for Reactive Power from its plant located in Louisa County Virginia; and (iv) FPL Energy Power Marketing, Inc. for Reactive Power from a simple cycle combustion turbine located at a plant in Doswell Virginia.
• 03.02.2006 Docket Nos. ER05-1410, EL05-148 (PDF) On March 2, 2006, PJM filed it Comments on FERC's February 3, 2006 Technical Conference in Docket Nos. ER05-1410 and EL05-148, concerning the Reliability Pricing Model.
• 03.01.2006 Docket No. EL06-50 (PDF) On March 1, 2006, PJM Interconnection, L.L.C. filed at FERC a Motion to Intervene in Docket No. EL06-50-000 regarding a petition filed by AEP requesting a declaratory order approving proposed incentive rates for a new 765 kV transmission line that AEP Transco is proposing to build from west to east across the PJM region.
• 03.01.2006 Docket No. ER06-456-000 (PDF) On March 1, 2006, PJM filed an amendment to its January 5, 2006 filing in Docket No ER06-456-000 to submit cost allocations for additional RTEP upgrades approved by the PJM Board in 2004 and to revise certain allocations submitted in the January filing. The amendment also included revised tariff sheets to identify the relevant upgrades and associated cost allocations in Schedule 12-Appendix of the PJM Tariff. PJM proposed to make these tariff sheets effective on May 30, 2006.
• 03.01.2006 Docket No. ER04-375-017, ER04-375-018 (PDF) On February 28, 2006, PJM and the Midwest ISO filed the attached joint combined periodic report on the RTOs' progress towards a joint and common market and implementation of the JOA. In this report, the RTOs propose to submit these periodic reports every 90 days to align the reporting process with the RTO stakeholder process associated with further evaluation, development and reporting of additional joint and common market initiatives.

February

• 02.27.2006 Docket No. RM06-10-000 (PDF)
  On February 27, 2006, in Docket RM06-10-000, PJM filed comments to the Commission's Proposed Rulemaking (NOPR) issued on January 19, 2006. The NOPR seeks comments on the New PURPA Section 210(m) Regulations Applicable to Small Power Production and Cogeneration Facilities. PJM supports the Commission's proposal to grant a blanket exemption for electric utilities located in the PJM Region and in the regions of other RTOs with similar market designs from PURPA's mandatory purchase obligations.
• 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.
  
  

Return to Top