1. Integration of Wind Energy in PJM
Southeast & Mid-Atlantic Regional Wind Summit
Raleigh, North Carolina
September 19, 2005
Ken Mancini, Sr. Engineer
Capacity Adequacy Planning
PJM Interconnection, L.L.C.
5/2/2019

2. Capacity Credit Overview Summary
Presentation Outline
PJM Overview
RTEP
PJM Wind Projects
Capacity Credit Overview
Summary
5/2/2019

3. ISO / RTO Roles
Operates one of the largest electric power systems in North America
Administers regional wholesale electric markets
Controls a reliable transmission system
Provides market monitoring coordinated with States and FERC
Provides for comprehensive regional transmission expansion planning
Provides an information resource for Market Participants and Regulators
5/2/2019

4. PJM Worldwide Comparison
131,330 MW Peak
1,082 Generating Units
EDF (France)
84,706 MW Peak
608 Generating Units
Tokyo Electric
64,300 MW Peak
147 Generating Units
ERCOT
60,157 MW Peak
437 Generating Units
National Grid (England & Wales)
54,430 MW Peak
212 Generating Units
Italy
53,403 MW Peak
314 Generating Units
CAISO
45,900 MW Peak
1,143 Generating Units
5/2/2019

5. ISOs/RTOs in North America
IESO
25,414 MW
New England
25,348 MW
PJM is the largest centrally dispatched entity in North America
(Megawatts indicate peak demand.)
New York
30,983 MW
California
45,900 MW
PJM 131,330 MW
ERCOT
59,992 MW
5/2/2019

6. PJM RTO Profile PJM RTO PJM - Full Service RTO Control Area Operator
Generating Units 1,082
Generation Capacity 163,806 MW
Peak Load 131,330 MW
Transmission Miles 56,070
Area (Square Miles) 164,260
Miles of Transmission 56,070
Population Served Million
States (+ D.C.) 13 states + D.C.
On this slide you will once again see current PJM Regions which are shaded
The table to the right shows some key PJM statistics.
PJM spans over eight governmental jurisdictions
PJM is Regional in Scope
The table to your lower left shows that PJM is a Full Service Reliability Coordinator and serves as……
Control Area Operator
Transmission Provider
Market Administrator
Regional Transmission Planner
NERC Reliability Coordinator
PJM - Full Service RTO
Control Area Operator
Transmission Provider
Market Administrator
Regional Transmission Planner
NERC Reliability Coordinator
Membership:
~ 350 Members
100+ Transmission Service Customers
5/2/2019

7. Supported by Thriving Wholesale Markets
Public Benefits of PJM
Supported by Thriving Wholesale Markets
Regional Scope
Many Buyers and Sellers
Participant Choices:
Financial Hedge
Self-Schedule Resources
Long Term Contracts
Day Ahead Market
Real-Time Market
Retail Adjustments
Load Response Programs
Enabled by PJM
Consumer Goals
Reliability Assurance
Collaborative Stakeholder Process for Improvement
Independence and Neutrality
Infrastructure for Business
Reliable Supply of Power
Fair Price for Electricity
Customer Choice
This slide shows the Public Benefits of PJM
Active Markets are enabled by the PJM Agreements and provide Consumers Reliable Power Supply at a Fair Price with Customer Choice.
Retail Market
Market Information
5/2/2019
Wholesale Market

8. PJM Authority Provided by Contract
Reliability Assurance Agreement
Regional Transmission Provider
Regional Control Area Operator
Market Developer and Coordinator
Regional Transmission Planner
Planning Process
Interconnection Process
NERC Security Coordinator
Transmission Owners Agreement
PJM Operating Agreement
PJM OAT Tariff
ECAR & MAAC Agreements
5/2/2019

9. Evolution of the Planning Process
5/2/2019

10. Regional Transmission Expansion Planning Process
FERC Approved Process
RTEP is a fully integrated process including:
On-going Adequacy Assessments
On-going Reliability Assessments
Transmission Expansion Advisory Committee (TEAC)
Expansion recommendations provided to PJM Board for approval
5/2/2019

11. Regional Planning Process Objectives
All Requests Treated Equally
Decisions in Equivalent Time Period result in Comparable Treatment
Reliable Transmission System
Robust Competitive Market
Information Provided On A Timely Basis
Resource Adequacy Determination
Ability of the Transmission System to Deliver Energy
Market Price Signals--Energy, Capacity, Ancillary Services
5/2/2019

12. 5/2/2019

13. PJM Wind Projects
5/2/2019

14. What has PJM done?
What has PJM done to facilitate Wind Energy Projects?
Expedited procedures for Generators that are less than 20MW
Collaborated with Wind Energy Experts
Formed Intermittent Capacity Resource Working Group
Offers Capacity Credits for Wind Power
5/2/2019

15. Wind Farm Locations 5/2/2019 Legend Planned Under Construction
0-20 MW
20-50 MW MW MW
Planned
Under Construction
In-Service
5/2/2019

16. Wind Power Summary Status MW Active 6924 In-Service 443
Under Construction
452
Total
7818
**Note: These numbers reflect both capacity and energy resources that are currently in PJM’s queue as of 9/14/2005.
5/2/2019

17. The PJM Capacity Market
&
Capacity Credit
Overview
Provides economic incentive for generation asset development
Obligations of load servers to secure capacity for their customers’ needs
Generators participate based on their capacity value
Prior to June 2003 there were no provisions for wind generators to participate
5/2/2019

18. Capacity Credit for Wind Generation
Intermittent Capacity Resources Working Group
Created November 2002, part of RAA-RC
Goal: Develop methodology to allow these generators to participate in PJM Capacity Markets
Address unique challenges of developing a means to calculate capacity value for generation assets that cannot be dispatched at will e.g. wind, photovoltaic
Capacity credit calculation approved April ’03
Implementation June ’03
Proactively worked with owners/operators/developers of in-service and planned wind farms to facilitate qualification for participation in capacity market
5/2/2019

19. Capacity Credit for Wind Generation
PJM’s Wind Capacity Credits
Based on real operating data when available
Three year rolling average of hourly outputs:
For the 4 hours ending 3 to 6 PM…
On the summer days of June 1 to August 31 Incl.
Wind “Class Average”
Used for each year operating data is unavailable
Equals 20% of Net Capability (Nameplate less Station load)
Replaced by actual data in rolling average calculation as operating data becomes available
5/2/2019

20. Integration of Market Solutions
The market will provide many solutions that must be integrated through the Regional Transmission Expansion Plan.
Generation Solutions
Strategically Sited Generation Projects
Distributed Resources
Load Solutions
Active Load Management/Demand-Side Resources
Transmission Solutions
Advanced Technology Options
Merchant Transmission
Traditional expansion/enhancement alternatives will also be identified through the Plan.
5/2/2019

21. Interconnection/Queues
If You Have Any Questions
Capacity Credits
Ken Mancini
Phone (610)
FAX (610)
Website
Interconnection/Queues
Ken Seiler
Phone (610)
FAX (610)
Website
5/2/2019

22. System Functionality Overview
GATS = Generation Attribute Tracking System
GATS - a regional information system that will track the environmental attributes of generation and will support reporting, compliance and verification requirements related to environmental compliance and related markets.
GATS is designed to be policy-neutral to the greatest extent possible.
The system will:
assist LSEs in their compliance with applicable emissions and fuel disclosure requirements,
assist LSEs in their compliance with state-level RPS regulation or renewable policy, and
enable voluntary bilateral markets for renewables.
5/2/2019

23. PJM-EIS Overview
PJM Environmental Information Services, Inc. (EIS) owns and administers the Generation Attribute Tracking System (GATS).
EIS is a wholly-owned subsidiary of PJM Technologies, Inc. (Tech)
EIS was formed to provide environmental and emissions attributes reporting and tracking services to its subscribers in support of portfolio standard and other information disclosure requirements.
Subscribers to the GATS will enter into an agreement with EIS for access to use the system. The agreement will define the:
user fee structure,
terms of use, and
business rules.
5/2/2019

24. Current Status of State RPS Programs
Renewable Portfolio Standards Adopted
New Jersey BPU will require use of GATS once operational
Maryland Regulation under development, requires use of GATS
Pennsylvania Regulation in process, stakeholders support GATS
District of Columbia Regulation development process just beginning
Delaware Regulation development process just beginning
Renewable Portfolio Standards Under Consideration
Illinois – Commission issued directive to Illinois utilities on voluntary RPS program
5/2/2019

25. Other State Policies and Regulations
Information Disclosure
LSE requirement to inform its customers of the fuel source, emissions and other characteristics of the electricity it supplies
Quarterly, semi-annually, annually
Emissions/Generation Performance Standard
Requires electricity supplier not to exceed a maximum threshold of specific pollutants
Voluntary Green Power Markets
Requires suppliers to provide documentation that supports and substantiates claims that suppliers may make when selling renewable electricity
All supported by GATS
5/2/2019

26. If you have any questions on GATS
For more information on GATS:
or the GATS Administrator:
5/2/2019