pjm©2010 1 welcome to pjm. pjm©2010 2 today’s agenda 1.introductions 2.pjm overview 3.state...

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Welcome to PJM

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Today’s Agenda

1. Introductions

2. PJM Overview

3. State and Federal Regulation• Steve Boyle

4. Open Discussion

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PJM Overview

Bill WalkerSr. Business Solutions AnalystApplied Solutions

walkew@pjm.com+01 610 666 3169

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KEY STATISTICSPJM member companies 650+millions of people served 51peak load in megawatts 144,644MWs of generating capacity 164,905 km of transmission lines 90,525GWh of annual energy 729,000generation sources 1,310square km of territory 425,431area served 13 states + DC

internal/external tie lines 250

26% of generation inEastern Interconnection

23% of load inEastern Interconnection

19% of transmission assets in Eastern Interconnection

20% of U.S. GDP produced in PJM

6,038 substations

PJM’s role in the US and the Eastern Interconnection

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Regional Transmission Organizations (RTOs) &Independent System Operators (ISOs) in North America

50,270

60,000

112,197

144,644

28,127

33,939

45,248

* Peak Load in MW

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PJM Transmission Owners

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PJM Committee Structure

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Member Committee Voting Protocol

Transmission Owners

Generation Owners

Other Supplier

End Use Customers

Electric Distributors

5/7 0.71

2/8 0.25

21/23 0.91

5/5 1.00

Required to pass = 0.667Number of Sectors = 5

Required Affirmative = 5 x 0.667 = 3.335

3.47

3/5 0.60

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PJM’s Energy Markets

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Existing Generation, Capacity

As of 12/31/2009

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Cumulative Increase in Capacity Resources over First Five RPM Auctions (2007 – 2011)

Total Increase = 9,986 MW

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2012/2013 Base Residual AuctionClearing Prices ($/MW-Day)

RTO MCP = $16.46

MAAC & SWMAAC MCP = $133.37

DPLS MCP = $223.30

EMAAC & PSEG MCP = $139.73

PSN MCP = $185.00

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Offers of Demand-Side Resources as Capacity in PJM by Delivery Year

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Payments to Curtailment Service Providers

RPM Implemented

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State renewable portfolio standard

State renewable portfolio goal

www.dsireusa.org / May 2010

Solar water heating eligible *† Extra credit for solar or customer-sited renewables

Includes non-renewable alternative resources

WA: 15% x 2020*

CA: 33% x 2020

NV: 25% x 2025*

AZ: 15% x 2025

NM: 20% x 2020 (IOUs) 10% x 2020 (co-ops)

HI: 40% x 2030

Minimum solar or customer-sited requirement

TX: 5,880 MW x 2015

UT: 20% by 2025*

CO: 30% by 2020 (IOUs)10% by 2020 (co-ops & large

munis)*

MT: 15% x 2015 ND: 10% x

2015

SD: 10% x 2015

IA: 105 MW

MN: 25% x 2025

(Xcel: 30% x 2020)

MO: 15% x 2021

WI: Varies by utility;

10% x 2015 statewide

MI: 10% + 1,100 MW x 2015*

OH: 25% x 2025†

ME: 30% x 2000New RE: 10% x 2017

NH: 23.8% x 2025

MA: 22.1% x 2020 New RE: 15% x 2020

(+1% annually thereafter)

RI: 16% x 2020

CT: 23% x 2020

NY: 29% x 2015

NJ: 22.5% x 2021

PA: ~18% x 2021†

MD: 20% x 2022

DE: 20% x 2020*

DC: 20% x 2020

VA: 15% x 2025*

NC: 12.5% x 2021 (IOUs)10% x 2018 (co-ops & munis)

VT: (1) RE meets any increase in retail sales x

2012; (2) 20% RE & CHP x 2017

KS: 20% x 2020

OR: 25% x 2025 (large utilities)*

5% - 10% x 2025 (smaller utilities)

IL: 25% x 2025

WV: 25% x 2025*†

29 states + DC have an

RPS(6 states have goals)

29 states + DC have an

RPS(6 states have goals)

DC

Renewable Portfolio Standards (RPS)

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Proposed Generation

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Wind Generation in PJM - Operational and Proposed

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Proposed Wind in PJM Footprint

As of 09/2009

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PJM Load and Wind Resources – April 7, 2010Lo

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PJM SynchroPhasor Deployment Project

Production Quality System to Support 150+ Monitored Substations

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Grid Storage Types

Pumped Hydro Compressed Air Flywheels

Stationary Battery Mobile Batteries Water Heaters

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• Mid-Atlantic Grid Interactive Car Consortium (MAGICC) – electric companies, research institutes, and vehicle manufacturers

• Over three years of experience with the MAGICC battery electric vehicle responding to the PJM regulation signal

Smart Grid and Plug-in Hybrid Electric Vehicles (PHEVs)

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Aggregating distributed storage

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Operational Details• Altairnano, Inc – Lithium Ion nano titanate battery

• Energy: 300 kWh• Efficiency: 90% round trip

• Power: 1 MW for 15 minutes • Usable Charge Range: 5% - 99%

AES Grid-Scale Energy Storage System

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Fast Regulation: Speed Matters…

A fossil power plant following a regulation

command signal

Energy Storage (batteries / flywheels) accurately following a regulation

command signal

Energy Storage OutputRegulation Signal

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Water Heater

105-gallon electric water heater demonstrates

minimization of cost while responding to the PJM wholesale price signal and the

PJM frequency regulation signal.

105-gallon electric water heater demonstrates

minimization of cost while responding to the PJM wholesale price signal and the

PJM frequency regulation signal.

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Fast Regulation: Speed Matters…

PJM pilot water heater -- January 14, 2011; Midnight to 3:00 a.m.

• PJM Frequency Regulation

Signal

• Water heater power consumption

+/-2.25 Kw base point

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Smart Grid – “Two Way Communication and Control”

Transmission

Distribution

Energy Users

Network Operations

Energy Providers

Consumer Devices

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Regional Benefits of PJM’s Markets

Reliability – resolving constraints and

economic efficiency– from $470 million to $490 million

in annual savings

Generation investment – decreased need for infrastructure investment – from $640 million

to $1.2 billion in annual savings

Energy production cost – efficiency of centralized

dispatch over a large region – from $340 million to $445 million in annual savings

Grid services – cost-effective procurement of

synchronized reserve, regulation – from $134 million to $194 million in annual savings

$2.2 billion in annual savings

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Thank you - Questions?