PJM©2014www.pjm.com A System Operator’s Resilience Wish List Tom Bowe Executive Director Reliability and Compliance PJM Interconnection

PJM© System Operations in 90 Seconds Who is PJM? How has Severe Weather Impacted System Operations? The Wish List

PJM© Grid Operations Fundamental Principle - BALANCE BALANCE Load = (Internal Generation and Net Interchange) = Transmission Lines = Within Limits Load to Gen Trans Limits

PJM© Summer Load Curve

PJM© PJM as Part of the Eastern Interconnection KEY STATISTICS PJM member companies 900+ millions of people served 61 peak load in megawatts 165,492 MWs of generating capacity183,604 miles of transmission lines 62, GWh of annual energy 791,089 generation sources 1,376 square miles of territory243,417 area served 13 states + DC externally facing tie lines % of generation in Eastern Interconnection 28% of load in Eastern Interconnection 20% of transmission assets in Eastern Interconnection Eastern Interconnection Largest Synchronized Machine As of 4/1/2014

PJM© The Distribution of Power

PJM© PJM Backbone Transmission

PJM© The Grid vs. Nature

PJM© Derecho Path

PJM© Sandy’s Path

PJM© /29/12 (initial 12-24hrs) - Outage Map

PJM© January 2014 Low (& Wind Chill) vs Historic Temperatures Unseasonably Cold Weather in January Region Week of Jan 6 Week of Jan 20 Week of Jan 27 Avg Jan Low Temp All-Time Record Low Philadelphia 4° (1/7) -18° WC 4° (1/22) -17° WC 10° (1/30) -3° WC 25.5° -7° (1982 & 84) -16° & -33° WC Richmond 10° (1/7) -8° WC 7° (1/23) -2° WC 4° (1/30) 4° WC 28.4° -12° (1940) WC N/A Chicago -16° (1/6) -41° WC -6° (1/24) -24° WC -11° (1/28) -30° WC 16.3° -27° (1985) -57° WC All temperatures are in Fahrenheit and WC denotes Wind Chill

PJM© Slide 6: PJM RTO Highest Historic Winter Demands

PJM© Slide 2: January 7 – Peak Load vs. Typical Load

PJM© Morning Peak Outaged ICAP%

PJM© Detailed Outage Causes

PJM© January 2014 Total Balancing Operating Reserve Credits January 2014

PJM© Resilience Definition 18

PJM© Strategic direction, coordinated action Electricity Critical Infrastructure NERC and Industry Actions VisionGoals Risk Priorities Scenario- based Approach Coordinated Action Plan 19

PJM© The Caveat –One individual’s take on a wish list The Theme –Look for solutions with the broadest applicability Some “Wishes” Linked to Identified Priorities

PJM© Priority 1 – Manage the Risk Risk Management –A process that examines and evaluates policies, plans, and actions for reducing the impact of a hazard or hazards on people, property and the environment. 1.Managing expectations – Potential New Normal 2.Resilience for All Hazards 3.Drill/Train for Creativity in Crisis

PJM© Priority 2 – Cost Effective Strengthening 1.Identify the greatest Interdependencies of the Critical Infrastructures –Communications –Fuel Delivery 2.Develop & Implement the solutions which strengthen these points for the greatest operational ROI

PJM© Priority 3: Increase System Flexibility and Robustness Additional transmission lines increase power flow capacity 1.How do you Justify? To a Commission? To a Community? 2.Reliability Criteria but what of Resilience Criteria? Micro Grids 1.Fully understanding the impact of not being interconnected 2.Decision Criteria Developed & People Drilled Market Solutions and Coordination

PJM© Priority 4: Increase Visualization and Situational Awareness SMART Meters and outage notification capability coupled with automated feeder switching, Synchrophasor technology 1.Ensure Reality = Reputation 2.Reduce State Estimation 3.Parallel Data Inputs & Solutions

PJM© Priority 5: Deploy Advanced Control Capabilities –blackouts illustrate that real-time monitoring tools were inadequate to alert operators to rapidly changing system conditions and contingencies –Providing operators with new tools that enhance visibility and control of transmission and generation facilities could help them manage the range of uncertainty caused by variable clean electricity generation and smart load, thus enhancing the understanding of grid operations 1.Solutions to Harden Model Stability – with imperfect and incomplete data

PJM© Priority 6: Availability of Critical Components and Software Systems Transformers Study Spare 1.Adaptability through Standards 2.Best Locations & Storage O ptions

PJM© A System Operator’s Resilience “Wishes” - Summary 1. Work to develop repeatable Resilience ROI quantification methodologies. VALUE = X 2. Integrate Resilience Solutions to address - All Hazards frameworks (Weather to Terrorists) for far greater ROI. VALUE = 2X 3. Coordinate Resilience Solutions across the highly interdependent critical infrastructures VALUE = 2X Squared?

PJM©2014www.pjm.com A System Operator’s Resilience Wish List Tom Bowe Executive Director Reliability and Compliance PJM Interconnection