Joe Polidoro, Sr. Engineer PJM Interconnection, LLC 610-666-4693

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Metering Requirements for the PJM Demand Side
Response Programs

• Joe Polidoro, Sr. EngineerPJM Interconnection,
  LLC610-666-4693

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PJM Demand Side Response Working Group

• The Demand Side Working Groups mission is to
  identify and promote opportunities for
  demand-side resources to participate in the PJM
  markets, and to recommend adoption of protocols
  and protocol revisions that foster optimum load
  participation in all markets.

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PJM Demand Side Response Working Group

• Why Is Your Participation Important?
• What is done in 2004 will likely fix your options
  for the next few years
• There are many Protocols issues that will be
  addressed by DSRWG this year that will affect
  whether your load is suitable for other
  opportunities
• If you have a stake, you cannot afford not to
  play
• You can participate in person, via phone or via
  web

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Future Footprint

• PJM
• PJM Western Region
• Duquesne - Jan 05
• AEP Oct 04
• Dayton Power Light - Oct 04
• ComEd May 04
• Dominion Power Nov 04

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ISOs in North America 12-31-03
IMO 25,414
IMO 25,414
PJM is currently the largest centrally
dispatched Entity in North America
New England 25,158
New York 30,983
PJM PJM West 63,777
California45,900
ERCOT 57,000
ERCOT 57,000
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PJM MISO Common Market Area
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PJM Governance
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How Demand Response Interacts with the Market?

• A working demand response program puts a downward
  pressure on price.
• It is an alternative to generating more
  electricity.
• When wholesale prices are high, Demand response
  can stabilize prices by reducing demand. When
  electricity supplies are short, demand response
  reduces stress on the grid.
• 4,600 Large Industrial and Commercial
  participants.
• 45,000 small commercial and residential end
  users in the program.

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What Program is Right for the End User?
Program Name Program Name Emergency Economic-Real-Time
Frequency I can respond any day of the year. I will notify the ISO when I want to curtail or notify me when prices are high.   a
Frequency I can respond infrequently. Only notify me when the lights are in danger of going out a  
       
Risk I want a 100 voluntary program with no risk and no penalties a a
       
Implementation I want to use my emergency generators and I have the proper permits. a a
Implementation I will only reduce load if I'm paid a minimum of 0.50/kW a End User Defined
       
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Load Reduction Verification Timeline
EDC Verification 10 Business Days
CSP Submittal 60 Calendar Days
LSE Verification 10 Business Days
PJM Database
PJM approves payment to CSP
PJM reviews and forwards to LSE and EDC
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Customer Baseline (CBL)

• In the Economic Program ONLY.. End-use customers
  that wish to measure load reductions by comparing
  metered load against an estimate of what metered
  load would have been absent the reduction may
  calculate a customer baseline (CBL) for the
  following methods as defined
• Average Day CBL for Weekdays
• Average Day CBL for Weekend/Holidays

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Average Day CBL for Weekdays

• 10 most recent days, beginning two days prior to
  event
• Exclude the following day-types
• NERC holidays
• Weekend Days
• Event Days
• Any day which the days average daily event
  period usage is less than 75 of the average
  event period usage level
• Replace excluded days with next valid day
• Final Weekday CBL Basis Window must contain 10
  days

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Average Day CBL for Weekdays

• For each of the 10 Days in Weekday CBL Basis
  Window calculate
• Average daily event period usage simple average
  of the participants usage over the hours in the
  day
• For all 10 Days in Weekday CBL Basis Window
  calculate
• Average event period usage level simple average
  of 10 average daily event period usage values
• Exclude low usage days, replace excluded day per
  Step 1, and continue
• Rank all remain 10 days, and eliminate 5 days
  with lowest average daily event period usage
• Weekday CBL Basis must contain 5 days

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Customer Baseline (CBL)
Day HR 12 HR 13 HR 14 HR15 HR16 HR17
1 Usage Usage Usage Usage Usage Usage
2 Usage Usage Usage Usage Usage Usage
3 Usage Usage Usage Usage Usage Usage
4 Usage Usage Usage Usage Usage Usage
5 Usage Usage Usage Usage Usage Usage

• For each hour of the event,
• Average Day CBL for Weekdays is the average of
  the usage in that hour in the five days that
  comprise the Weekday CBL Basis

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Reserves in PJM

• Spinning Reserve
• Primary Reserve
• Quick Start
• Supplemental Reserves

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Reserves in PJM

• Spinning Reserve
• Synchronized reserve capability that can be
  converted to energy within 10 minutes
• Procured via real-time Spinning Reserve Market
• Requirement varies based on NERC Reliability
  Region, typically equal to output of largest
  contingency on system
• ECAR and MAIN rules allow dispatchable load to
  count as spinning reserve (MAAC does not)

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Reserves in PJM

• Primary Reserve
• Made up of Spinning Reserve and 10 minute
  non-synchronized reserve
• Requirement varies based on NERC Reliability
  Region, PJM Mid-Atlantic requirement is 150 of
  largest unit on system
• Procured in real time by PJM dispatchers
• No premium paid for Primary Reserve Services
• Shortfall in Primary Reserve corrected by
  committing additional Spinning Reserve

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Reserves in PJM

• Quick Start
• Non-synchronized capability that can start up
  within 15 minutes
• No quick start requirement operated to
• MIC currently discussing possible quick start
  market
• Counts towards primary reserve in some
  reliability regions

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Reserves in PJM

• Supplemental Reserve
• Non-synchronized capability that can start up
  within 30 minutes
• Procured day ahead via reliability run (2nd
  commitment process)
• Requirement varies by reliability region,
  averages 8 across RTO
• Proposed operational constraint in Reliability
  Pricing Model to procure Supplemental Reserves

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Obtain a Free eData Account
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Next Steps

• FUTURE MEETINGS
• October 12, 2004 Wilmington, DE
• November 3, 2004 Wilmington, DE
• November 30, 2004 Wilmington, DE

• For more information, submit requests to
• LoadResponse_at_pjm.com