PJM© PJM Confidential PJM Generation Interconnection Overview Virginia Offshore Wind Conference Virginia Beach June 22, 2011 Paul McGlynn General Manager, System Planning PJM

PJM© PJM’s Role Ensures the reliability of the high-voltage electric power system Coordinates and directs the operation of the region’s transmission grid; Administers a competitive wholesale electricity market; Plans regional transmission expansion improvements to maintain grid reliability and relieve congestion.

PJM© PJM as Part of the Eastern Interconnection with ATSI Integration KEY STATISTICS PJM member companies 700+ millions of people served 58 peak load in megawatts 158,448 MWs of generating capacity180,400 miles of transmission lines 61,200 GWh of annual energy 794,335 generation sources 1,365 square miles of territory211,000 area served 13 states + DC Internal/external tie lines % of generation in Eastern Interconnection 27% of load in Eastern Interconnection 19% of transmission assets in Eastern Interconnection 20% of U.S. GDP produced in PJM As of 6/1/2011

PJM© What is the PJM Interconnection Queue? The PJM interconnection process utilizes a queue system to prioritize requests from developers to interconnect to the system Developers enter the queue and are studied for impacts to the system Queues are “open” for a 3 month period –Generation, Merchant Transmission, and Long-Term Firm Transmission Service Queues are Fully Integrated Specific Rights Based on Queue Position and Satisfaction of Milestone Requirements –Projects with earlier queue positions have first right to any existing system capability Required Transmission or Distribution Upgrades Based on Reliability Criteria – paid by developer

PJM© Interconnection Request Studies ISA/CSA Implementation ISA/CSA/WMPA Execution Commercial Operation Note: Projects May Drop Out of the Queue at any Time Feas Imp Fac Interconnection Request Process

PJM© Projects Listed as Active in the Queue

PJM© Proposed Generation (MW) – Renewables 36,376 / 59% As of January 4, 2011