December

• eDART XML – 12.20.2007 - Topics
• Nuclear Generation Owners/Operators User Group – 12.20.2007 - Topics: To be posted.
• Reliability Pricing Model Working Group – 12.20.2007 - Topics: Administration, Replacement Transmission Deadline, Energy Efficiency in Capacity Markets, PLC Addback Methodology, Intermittent Generation, EFORP, EFORD Risk Segment, Transferring FRR Service Areas, Available Capacity for Incremental Auctions, Next Steps/Future Agenda Items, Future Meetings.
• System Information Subcommittee 12.19.2007 - Topics: To be posted.
• Planning Committee/TEAC – 12.19.2007 - Topics: Administrative, Minutes, PJM Transmission Owner Audit, AEP Automatic Sectionalizing Schemes
  10:30 a.m. – Start of the TEAC Meeting, LDA Methodology Update, RPM Modeling Assumptions, Manual 14 Update, Conclusion of PC Meeting, 2007 RTEP Update, 2008 RTEP Timeline, 2008 Reliability Analysis Assumptions, Future Meeting Dates
• Black Start Services Working Group – 12.19.2007 - Topics: Administration, Review of the BSSWG Charter, Discuss and Recommend Solutions to Assignments, Discuss Completion Timeline, Action Item Review, Future Agenda Items, Future Meetings.
• Dispatcher Training Task Force – 12.18.2007 - Topics: Review and Approve Minutes from the November 27, 2007 DTTF Meeting, Report from the SOS Liaison, eDART Updates, PJM Operations Training, 2008 PJM Emergency and Restoration Drills, PJM Manuals, NERC and PJM Certification, PJM Training and Certification, Status of NERC Operator Training, Your Items.
• Operating Committee – 12.18.2007 - Topics: Administration, Committee/Subcommittee Updates, NERC/RFC Update, August 8 Operations Update, Proposed Synchronized Reserve Market Rule Changes, Review of Operations, Nuclear Plant Interface Coordination Manual (M39), Generator Performance Monitor, EMS Pilot Program/Data Confidentiality, AEP Sectionalizing Schemes, Action Items, Future OC Meetings
• Governance Working Group – 12.14.2007 - Topics: Committee Voting Protocols, Voting Reports, Corporate Goals.
• Audit Advisory Committee – 12.13.2007 - Topics: Review and discuss the PJM SAS 70 Report for the period October 1, 2006 through September 30, 2007.
• Market Implementation Committee – 12.12.2007 - Topics: Administration, Unsecured Credit for Net Sellers, Long-Term Market Access for Demand Side Response, Proposed RPM Rule Changes, Updated Cost of New Entry, Spread Bid Product Development, Load Following Product, Add Backs to Determine Peak Load Contributions for Demand Response Resources, Synchronized Reserve Market Penalty Period, PJM and Midwest ISO Transaction Scheduling Issue, Transmission Outage Acceleration Update, Automatic Sectionalizing Schemes, Report on Market Operations, eMKT User Interface Issues, Working Group Updates, Future Agenda Items, Future Meetings.
• System Operation Subcommittee – 12.12.2007 - Topics: Administration, Review of the SOS Charter, Review of Operations, Working Group Updates, System Operator Training and Certification, Spinning Response, Synchronized Reserve Market Penalty Period, New Black Start Testing Form, Quarterly AC2 Update, Auto-Sectionalizing AEP, Generation Monitoring Tool, Generator Reactive Items, Winter Capacity Testing, NERC/RFC Audit Update, Manual Update, Future Agenda Items, Future Meetings.
• Market Settlements Working Group – 12.12.2007 - Topics: System Replacement Project, FERC EQR Report Format Review, Administrative Items.
• Demand Side Response Working Group – 12.11.2007 – Topics: Administration, DSR Activity Through November, Update on the $17.5 Million Incentive Cap, Follow-up Proposed Load Management Manual Revisions for 08/09 Delivery Year, Future Meetings.
• General Session – 12.11.07 - Topics: Transmission Cost Allocation, Demand Response, Proposed Central LDA.
• Long-Term FTR Working Group – 12.10.2007 - Topics: Administration, External Eligibility for State 1 ARRs, Potential for Seasonal Arr/FTR Process, Next Steps/Future Meetings.
• Three Pivotal Supplier Task Force – 12.10.2007 Topics - Administration, Conduct and Impact Test, Alternative Testing Approaches, Future Meetings.

Interconnection requests to PJM grid increasing

As the number of interconnection requests continues to grow within PJM, the process to review and study each project at each phase poses timing challenges to the existing resources to provide the analysis, according to a PJM presenter at a December technical conference conducted by the Federal Energy Regulatory Commission. The conference was held to seek information about any queue issues that may have arisen and solutions that may have been developed or proposed to deal with the queue issues.

PJM submitted to the FERC proposed revisions to amend the PJM Credit Policy, Attachment Q of the PJM Open-Access Transmission Tariff on Dec. 26, 2007. The revisions, which received unanimous stakeholder support, seek to "right size" PJM’s collateral requirements by better correlating them with the PJM membership’s monthly risk exposure from trading activity in PJM’s FTR markets. The proposal calls for an effective date of April 1, 2008.

PJM is pursuing additional collateral requirements through the PJM Member Committee to address incremental credit requirements for undiversified FTR bidders. Combined, these new credit policy revisions are expected to help avoid exposure to future credit defaults by members in situations like the two recent defaults reported in November and December.

PJM’s members had determined in past meetings how the default cost would be allocated. Since PJM's inception as an ISO in 1997, PJM's members have supported charging non-defaulting members for member payment defaults. This decision was reinforced by PJM's members again in 2006 when they supported changes to the default allocation formula but left intact the approach to collecting such defaults from non-defaulting members. All the ISOs/RTOs have such a mechanism in place with the actual allocation calculation decided by each membership. This has been necessitated by all the ISOs/RTOs being non-stock, profit neutral companies with no capitalization to cover any payment defaults.

Defaults for PJM’s market are rare, according to Suzanne Daugherty, vice president, chief financial officer and treasurer for PJM. The only other occurrence was when two companies defaulted in January 2001 for approximately $4.7 million.

The developers of a 765 kilovolt transmission line from West Virginia to Maryland filed with FERC for a rate of return on the project at the end of last month. The Potomac-Appalachian Transmission Highline, L.L.C. (PATH), on behalf of its operating companies PATH West Virginia Transmission Company, L.L.C. (PATH-WV) and PATH Allegheny Company, L.L.C. (PATH-Allegheny), filed the transmission cost of service formula rate for inclusion within PJM’s Open Access Transmission Tariff.

• 12.18.2007 Docket No. ER08-101-000 (PDF)
  On December 18, 2007, the Commission issued a deficiency letter pertaining to PJM's submittal of the executed non-conforming Interconnection Service Agreement among PJM Interconnection L.L.C., Industrial Power Generating Company, L.
• 12.14.2007 Docket No. ER08-40-001 (PDF)
  On December 14, 2007, the Commission issued a Letter Order requesting additional information and clarification to the December 10, 2007 Letter Order regarding the filing of the executed non-conforming Interconnection Service Agreement between PJM Interconnection, L.L.C., Conectiv Delmarva Generation and Delmarva Power and Light Company in Docket Nos. ER08-40-001.
• 12.10.2007 Docket No. ER08-40-000, -001 (PDF)
  On December 10, 2007, the Commission issued a Letter Order finding that PJM Interconnection, LLC's October 11, 2007 filing of the executed non-conforming Interconnection Service Agreement between PJM Interconnection, L.L.C., Conectiv Delmarva Generation and Delmarva Power and Light Company is deficient, Docket Nos. ER08-40-000, -001.
• 12.04.2007 Docket No. ER08-138-000 (PDF)
  On December 4, 2007, the Commission issued a Letter Order accepting PJM Interconnection, LLC's October 31, 2007, filing of two Interconnection Service Agreements among PJM, AMERESCO Delaware Energy, L.L.C., and the Delmarva Power & Light Company and two Notices of Cancellation for the ISAs being superseded, effective October 1, 2007 as requested in Docket No. ER08-138-000.
• 12.04.2007 Docket No. ER08-141-000 (PDF)
  On December 4, 2007, the Commission issued a Letter Order accepting PJM Interconnection, LLC's November 1, 2007, filing of an Interconnection Service Agreement among PJM, York Haven Power Company and Metropolitan Edison Company, a FirstEnergy Company, effective October 2, 2007 as requested in Docket No. ER08-141-000.
• 12.04.2007 Docket No. ER08-96-000 (PDF)
  On December 4, 2007, the Commission issued a Letter Order accepting PJM Interconnection, LLC's November 5, 2007, filing of an Interconnection Service Agreement among PJM, DPL Energy, L.L.C., and the Dayton Power & Light Company to facilitate an increase in capacity interconnection rights of 13 MW and the nonconforming language contained in Schedule E of the Agreement and the Notice of Cancellation of the earlier ISA that is being superseded in Docket No. ER08-96-000.
  

FERC Filings

December

• 12.26.2007 Docket No. ER08-xxx-000 (PDF)
  On December 26, 2007, PJM submitted proposed revisions to amend the PJM Credit Policy, Attachment Q of the PJM Open-Access Transmission Tariff. The revisions, which received unanimous stakeholder support, seek to "right size" PJM's collateral requirements by better correlating them with the PJM membership's monthly risk exposure from trading activity in PJM's FTR markets. PJM is requesting an effective date of April 1, 2008, in Docket No. ER08-xxx-000.
• 12.19.2007 Docket Nos. EL07-56-000, -001, -002 and EL07-58-000, -001, -002 (PDF)
  On December 19, 2007, in Docket Nos. EL07-56 and EL07-58, PJM Interconnection, L.L.C. filed a Settlement Agreement among numerous parties, concerning the details of the relationship between PJM and its market monitor. The settlement agreement provides for market monitoring services by an external firm, Monitoring Analytics, LLC, to be headed by Dr. Joseph Bowring, the current, internal market monitor.
• 12.17.2007 Docket No. ER07-1186-000 (PDF)
  On December 17, 2007, in accordance with the Commission's order issued on October 18, 2007 in Docket No. ER07-1186-000, PJM submitted a compliance filing in which it addressed several issues regarding the cost responsibility assignments for at or above 500 kV RTEP facilities PJM filed on December 17, 2006.
• 12.17.2007 Docket Nos. ER07-576-000, -001 (PDF)
  On December 17, 2007, Baltimore Gas and Electric Co. ("BGE"), submitted tariff revisions to amend its formula rate under Attachment H-2 of PJM's Tariff. The filing reflects the Commission's approval of a 100 basis point incentive adder on the return on equity of certain Transmission Owner Initiated new transmission investment projects, effective June 1, 2007 in Docket No. ER07-576-000, -001.
• 12.17.2007 Docket No. ER07-940-000, -001 (PDF)
  On December 17, 2007, the Midwest ISO and PJM submitted a Joint Answer to the Motion to Intervene Out-Of-Time and Comments of E.ON U.S. LLC ("E.ON") filed on November 29, 2007, in the PJM/MISO JOA CMP market flow threshold 12 month field test proceeding, Docket No. ER07-940-000, -001. Aside from requesting leave to intervene grossly out of time, E.ON filed comments against the Midwest ISO's proposed field test period, requesting that the Commission direct all field tests in the proceeding be concluded by June 1, 2008.
• 12.17.2007 Docket No. ER08-339-000 (PDF)
  On December 17, 2007, PJM submitted proposed tariff revisions to amend Schedule 2 of the Tariff to remove the chart specifying the revenue requirements of every provider of Reactive Power by Zone and replacing it with a provision requiring PJM to post such information on its Website. PJM requested an effective date of February 15, 2008 in Docket No. ER08-339-000.
• 12.13.2007 Docket No. ER07-1394-000 (PDF)
  On December 13, 2007, PJM filed a motion for an extension of time until January 11, 2008 to submit a response to the deficiency letter issued in Docket No. ER07-1394-000 regarding an ISA among PJM, Ameresco, and Dominion Virginia Power.
• 12.11.2007 Docket Nos AD08-2-000, ER08-280-000, et al. (PDF)
  On December 11, 2007, the Federal Energy Regulatory Commission held a Technical Conference regarding the Interconnection Queuing Practices. Steve Herling testified on behalf of PJM and presented the Status of the PJM Queue: Overview Comments of PJM Interconnection in Docket Nos. AD08-2-000, OA07-54-000, ER08-280-000.
• 12.07.2007 Docket No. ER08-55-00_ (PDF)
  On December 07, 2007, the Midwest ISO and PJM submitted proposed revisions to the Congestion Management Process ("CMP") of their Joint Operating Agreement ("JOA"), with an effective date of November 1, 2007. The filing is consistent with the Commission's November 27, 2007 Order, in which the Commission conditionally accepted the proposed revisions to the CMP of the JOA of the Midwest ISO and Southwest Power Pool, effective October 1, 2007.
• 12.07.2007 Docket Nos. ER05-6 et al., EL04-135 et al., EL02-111 et al., EL03-212 et al. (PDF)
  On December 7, 2007, PJM joined certain Indicated PJM Transmission Owners, certain Indicated MISO Transmission Owners and MISO in filing a response to Green Mountain's Answer to the November 9, 2007, Motion for Enforcement of Commission Orders in the SECA proceedings.
• 12.07.2007 Docket No. OA08-32-000 (PDF)
  On December 7, 2007, PJM filed with the FERC, revisions to the PJM Operating Agreement in compliance with Order No. 890's directives to file a proposal for a coordinated and regional planning process that complies with the planning principles adopted by the Commission.
• 12.06.2007 Docket No. EL08-12-000 (PDF)
  On December 6, 2007, PJM Interconnection, L.L.C. submitted with FERC its answer to PJM Industrial Customer Coalition's November 20, 2007 complaint in Docket No. EL08-12-000 regarding incentive payments under PJM's economic demand side response program.
• 12.05.2007 Case No. 07-1474 (PDF)
  On December 5, 2007, PJM Interconnection, L.L.C. submitted a Motion for Leave to Intervene in Wisconsin Public Service Corporation v. FERC, Case No. 07-1474, with the United States Court of Appeals for the District of Columbia Circuit regarding a petition for review of FERC orders concerning the implementation of a single-dispatch system administered jointly by PJM and the Midwest Independent Transmission System Operator, Inc.
• 12.04.2007 Docket No. EL08-14-000 (PDF)
  On December 4, 2007, the Commission issued a Notice of Complaint in Docket No. EL08-14-000. Black Oak Energy, LLC, EPIC Merchant Energy, LP and SESCO Enterprises, LLC filed a formal complaint against PJM Interconnection, L.L.C. alleging the PJM Tariff is improperly allocating physical transmission line losses to virtual transactions and distributing over-collected transmission line losses in a manner that discriminates against virtual Market Participants. The comment date is December 26, 2007.
• 12.04.2007 Docket No. ER08-194-000 (PDF)
  On December 4, 2007, PJM filed a Motion to Intervene and Protest in Docket No. ER08-194-000, wherein PJM requests that the Commission reject Duquesne Light Company's request for the Commission to abrogate its obligations under the PJM Reliability Assurance Agreement to PJM and its Members.
• 12.03.2007 Docket No. EL08-14-000 (PDF)
  On December 3, 2007, Black Oak Energy, LLC, EPIC Merchant Energy, LP and SESCO Enterprises, LLC, collectively, the "Financial Marketers" filed a complaint against PJM stating PJM's Tariff unduly discriminates against financial or "virtual" Market Participants by allocating physical transmission line losses to virtual transactions. The Financial Marketers have requested the Commission for Fast-Track Processing.

• Docket No. ER06-456-000 (PDF) Testimony (PDF) Offer of Settlement (PDF) Affidavit (PDF) Certificate (PDF)
  On November 30, 2007, in Docket No. ER06-456-000, et al., (the below 500 kV RTEP upgrade cost allocation proceeding), PJM filed the Prepared Direct Testimony of Steven R. Herling, including as an exhibit the settlement filed in Docket No. ER06-456-000 et al. on September 14, 2007, a summary of the testimony, affidavit of Steven R. Herling, and a certificate of service.
• 11.30.2007 Docket No. er08-280-000 (PDF)
  On November 30, 2007, PJM submitted for filing, pursuant to Section 205 of the Federal Power Act, PJM Tariff sheets which amend the timing and frequency for System Impact Studies under Section 205.3 of the Tariff and the timing of Feasibility Studies under Section 36.2 of the Tariff. PJM requests that these revisions to the Tariff be made effective as of February 1, 2008.
• 11.30.2007 Docket No. ER06-1218-000 et al. (PDF)
  On November 30, 2007, in compliance with the Federal Energy Regulatory Commission's ("Commission") May 17, 2007, Order on Rehearing, Compliance Filings and Settlement, (PJM Interconnection, LLC, 119 FERC P 61,144 (2007)), PJM Interconnection, L.L.C. filed an informational report that describes the transmission rights under-funding uplift charge allocation alternatives evaluated in the PJM stakeholder process and the results of that process.
• 11.29.2007 Docket No. EL08-80-000 (PDF)
  On November 29, 2007, PJM filed an answer to a complaint filed by Mirant in Docket No. EL08-8-000. The Complaint asks FERC to modify the definition of opportunity cost under RPM prior to the Third Incremental Auction that will be conducted on January 7, 2008. In its answer, PJM notes that Mirant's complaint is very narrow and has merit. PJM states that it, therefore, does not oppose FERC acting on Mirant's complaint before the Third Incremental Auction.
• 11.21.2007 Docket No. EL08-12-000 (PDF)
  On November 21, 2007 the Commission issued Notice of PJM Industrial Customer Coalition's formal complaint against PJM Interconnection, L.L.C. in Docket No. EL08-12-000. The matter has been requested for the fast track process and the Comment Date is December 6, 2007.
• 11.21.2007 Docket No. ER08-252-000 (PDF)
  On November 21, 2007, PJM submitted for filing an executed Wholesale Market Participation Agreement ("WMPA") among PJM, PPL Shoreham Energy, LLC, and Atlantic City Electric Company, last executed on October 10, 2007, having an effective date of October 30, 2007 in Docket No. ER08-252-000.
• 11.20.2007 Docket No. ER08-238-000 (PDF)
  On November 20, 2007, PJM Interconnection, L.L.C. submitted for filing with the Commission, as part of Rate Schedule No. 42, the TrAILCo signature page to the Transmission Owners Agreement ("TOA") in Docket No. ER08-238-000. Also submitted were, a revised Attachment A to the TOA adding TrAILCo to the list of PJM Transmission Owners and a revised Attachment L to PJM's Open Access Transmission Tariff ("Tariff") to include TrAILCo as a PJM Transmission Owner under the tariff. The requested effective date for the revisions is January 19, 2008