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A
Access — Eligible Load
Retail load anticipated to participate in a state-administered retail access program and the wholesale load for which there is no contractual commitment.

Accounted-for Deficiency
The amount by which an LSE’s accounted-for obligation exceeds its unforced capacity.

Accounted-for Excess
The amount by which an LSE’s unforced capacity exceeds its accounted-for obligation.

Accounted-for Obligation
This is an Obligation based on load ownership and PJM pool reserve requirements. This can result in purchases and sales of unforced Capacity. The Accounted for Obligation for each Party is equal to the LSE Obligation, across all zones, over a Planning Period, determined on a daily basis, summed monthly for billing purposes. The principle tool used in establishing the final LSE Obligation is the web based eCapacity Application.

Actual Load
The LA total load per EDC zone, as determined through actual retail customer meter readings and EDC load profiling methods.

Adjacent System or Adjacent Control Area
Any system or control area either directly interconnected with or electrically close to (so as to be significantly affected by the existence of) another system or control area.

Adjusted Integrated Interchange
A company’s interchange across its tie lines corrected for the company’s share of Generation from joint-owned units, NUGs, and losses.

Adjusted Primary Reserve (calculated)

Adjusted Spinning, plus the Quick-Start Reserve total, minus Non-Capacity Interchange Purchases.

- This adjusts the Primary Reserve value by applying a factor to the non-Hydro Quick-Start total to account for the possible failure of equipment to start and by including the possible reduction in Non-Capacity Interchange.


Adjusted Spinning (Calculated)

Summation of the Spinning Reserve total, Non-Capacity Interchange Sales, and the ACE.

- This accounts for deficiencies or excesses of energy,which are present at the time of the IRC.


Adjusted Zonal Capacity Prices
The results of the Second Incremental Auction. Preliminary Zonal Capacity Prices that result from the Base Residual Auction are adjusted to account for the procurement in the 2nd Incremental Auction for the RTO.

Advanced Metering Infrastructure

The integrated network of smart meters, data management systems and other “smart” devices that allow for two-way communication between utilities and customers and their end-use devices, such as air conditioning units and hot water heaters. A device becomes “smart” when it contains technologies that allow for two-way communication of key data such as energy usage statistics. AMI can include everything from in-home display systems depicting usage, to energy management systems and other customer-facing equipment. All of these devices communicating data and information come together to become what is commonly referred to as the smart grid.


Advanced Metering Infrastructure
Retail load anticipated to participate in a state-administered retail access program and the wholesale load for which there is no contractual commitment.

Affiliate
An affiliate company is an organization that is owned by a parent company with more than 10% ownership. Affiliates, as seen by PJM, are non-voting entities generally.

However, there are cases where multiple sibling companies exist without a PJM member as the parent and then one of the affiliates may be designated as the voting member.

Affiliate Group
A group of signatories to the Operating Agreement of PJM Interconnection, L.L.C., treated collectively as a single PJM Participant.

Agent
An entity appointed by a PJM Member to act in its stead on the Market Administrative Committee.

Aggregate
Combination of buses or bus prices.

Agreement
The Operating Agreement of PJM Interconnection, L.L.C., dated March 28, 1997, together with its schedules.

Alive (Energized)

Electrically connected to a voltage source, or electrically charged so as to have a potential different from that of ground. Synonyms: energized, live, hot.

CAUTION: Not to be used for protection of personnel where the term may be in violation of individual company's safety rules.


Alternating Current
An alternating current is the movement of an electric charge that periodically reverses direction. This is compared to the flow of electric charge in direct current, which moves in only one direction. Electric power is delivered to homes and businesses through alternating current.

Analog Control
A signal which, with respect to time, varies continuously in proportion to the measured quantity.

Ancillary Services
Those services that are necessary to support the transmission of Capacity and energy from resources to loads, while maintaining reliable operation of the Transmission Provider's Transmission System in accordance with Good Utility Practice.

Annual Demand Resources

Demand Resources which can be called on an unlimited number of times any day of the delivery year, unless on an approved maintenance outage.


Annual Transmission Costs
The total annual cost of the Transmission System for purposes of Network Integration Transmission Service is the amount specified in the Tariff for each Zone until amended by the applicable RTO or modified by the Commission.

Apparent Power
The vector sum of REACTIVE and REAL power components. Units are Volt-Amperes.

Applicant
An entity that desires to become a PJM Participant under the Agreement.

Application
A request by an Eligible Customer for transmission service pursuant to the provisions of the Tariff.

Area Control Error (ACE)
Area Control Error of the PJM RTO is the actual net interchange minus the biased scheduled net interchange, including time error. It is the sum of tie-line errors and frequency errors.

Area Regulation Signal
Signal generated by PJM control center and sent to the LSEs or other controllable entities to change generation quickly to keep PJM’s area control error within allowable limits. Used to control for small fluctuations in load.

Associated Unit (AU)
A unit that is located at the same site as a frequently mitigated unit (FMU) and which has identical electrical and economic impacts on the transmission system as an FMU but which does not qualify for FMU status.

Auction Revenue Rights (ARR)

Entitlements allocated annually to Firm Transmission Service Customers that entitle the holder to receive an allocation of the revenues from the Annual FTR Auction.


Automatic Generation Control (ACG)
Equipment that automatically adjusts a Control Area’s generation to maintain its interchange schedule plus its share of frequency regulation.

Automatic Recloser
The automatic closing of a circuit breaker(s) by relay action after it has been tripped by protective relays. The automatic recloser may be high speed or include a time delay.

Automatic Reserve Sharing
This is a reserve sharing agreement between companies.

Availability
A measure of time a generating unit, transmission line or other facility is capable of providing service, whether or not it actually is in service.

Available
The condition of an element that is capable of service whether it is actually in service or not.

Available Hours
The time a unit is capable of producing energy, regardless of its capacity level.

Available Resource
The sum of existing generating capacity, plus new units scheduled for service, plus the net of equivalent firm capacity purchases and sales, less existing capacity unavailable due to planned outages.

Available Transfer Capability (ATC)
The amount of energy above “base case” conditions that can be transferred reliably from one area to another over all transmission facilities without violating any pre- or post-contingency criteria for the facilities in the PJM Control Area under specified system conditions.

B
Backbone

Large capability transmission facilities at 345 kV and above that support large-scale power transfers across PJM and inter-regionally.


Balancing Energy Market
Energy that is generated and financially settled during real time.

Balancing Operating Reserves

Generation and demand response resources that operate as requested by PJM are guaranteed to fully recover the costs of their daily offer amounts. Accounting for these "make-whole" costs is performed on a daily basis, and for both the Day-Ahead Energy Market and the Real-Time Energy Market. Such resources are guaranteed to recover their total cost of these offer amounts through Balancing Operating Reserve credits that are charged to market participants.

Balancing Operating Reserve costs are out-of-market and as such are not included in the pricing signals that are visible and transparent to the entire market. When these "uplift" payments are charged to the market, they are not predictable and cannot be hedged on a forward basis.


Base Case Conditions (BCC) for Non-Firm ATC

Power flow base case modeling that reflects current system conditions at the time of the calculation, adjusted to reflect scheduled transactions during the 168-hour period by transmission customers holding firm reservations from PJM, firm transactions that are scheduled between control areas other than PJM, non-firm scheduled transactions, and major facility (generation and transmission) outage schedules during the period.


Base Case Conditions for Firm ATC
Power flow base case modeling that reflects all transactions of transmission customers holding firm reservations from PJM, known firm transactions that are scheduled between control areas other than PJM, and transfers used to model the Capacity Benefit Margin.

Base LDA Unforced Capacity
Equal to the sum of the Base Zonal Unforced Capacity Obligations for all the zones in an LDA and is the result of the clearing of the Base Residual Auction.

Base Load
Base load is the constant or permanent usage on a power supply.

Base Offer Segment
The sell offer segment that may be offered as either a single price quantity for the capacity of the resource or divided into up to ten (10) offer blocks with varying price-quantity pairs that represent various output levels of the resource. The Base Offer Segment will consist of block segments at the specified price-quantity pairs.

Base Residual Auction (BRA)
Allows for the procurement of resource commitments to satisfy the region’s unforced capacity obligation and allocates the cost of those commitments among the LSEs through the Locational Reliability Charge.

Base RTO Unforced Capacity
Determined after the clearing of the BRA and is posted with the BRA results. The Base RTO Unforced Capacity Obligation is equal to the sum of the unforced capacity obligation satisfied through the BRA plus the Forecast RTO Interruptible Load for Reliability (ILR) Obligation.

Base Unforced Capacity Imported into an LDA
Equal to the Base LDA Unforced Capacity Obligation less the LDAs Unforced Capacity cleared in the Base Residual Auction less the LDA Forecast ILR Obligation. This value is used to determine the maximum total amount of Capacity Transfer Rights that are allocated into an LDA in the Base Residual Auction for the Delivery Year.

Base Zonal RPM Scaling Factor
Determined for each zone and Equal to the [(Preliminary Zonal Peak Load Forecast for the Delivery Year divided by the Zonal Weather Normalized Summer Peak for the summer four years prior to the Delivery Years) * ((RTO Unforced Capacity Obligation Satisfied in Base Residual Auction divided by the (RTO Preliminary Peak Load Forecast * the Forecast Pool Requirement))]. Base Zonal RPM Scaling factors are posted with the Base Residual Auction results.

Base Zonal Unforced Capacity Obligation

Determined for each zone and equal to the (Zonal Weather Normalized Summer Peak for the summer four years prior to the Delivery Year* Base Zonal RPM Scaling Factor * the Forecast Pool Requirement) + Forecast Zonal ILR Obligation. Base Zonal Unforced Capacity obligations are posted with the Base Residual Auction clearing results.


Behind the Meter Generation
A generating unit that delivers energy to load without using the Transmission System or any distribution facilities (unless the entity that owns or leases the distribution facilities consented to such use of the distribution facilities and such consent has been demonstrated to the satisfaction of the Office of Interconnection. Behind the Meter Generation may not include at any time any portion of a generating unit’s capacity that is designated as a Capacity Resource or any portion of the output of a generating unit that is sold to another entity for consumption at another electrical location or into the PJM Interchange Energy Market at any time.

Bilateral Market
Provides LSEs the opportunity to hedge the Locational Reliability Charge determined through the BRA and Second Incremental Auction. The bilateral market also provides resource providers an opportunity to cover any auction commitment shortages.

Bilateral Transaction
An agreement between two entities (one or both being PJM Members) for the sale and delivery of a service.

Bilateral Unit-Specific Transaction
Transaction that enables the transfer of ownership of a specified amount of installed capacity from a specific unit from one party to another.

Black Start

A Black Start Generator is a generator that is capable of being started without an outside electrical power supply.


Black Start Plant

A Black Start Plant is a generating plant that includes one or more Black Start Units. A generating plant with Black Start Units electrically separated at different voltage levels will be considered multiple Black Start Plants.


Black Start Service

Black Start Service enables Transmission Providers and Transmission Owners to designate specific generators called Black Start Units whose location and capabilities are required to re-energize the transmission system following a system-wide blackout.


Black Start Unit

A Black Start Unit is a generating unit that has equipment enabling it to start without an outside electrical supply or a generating unit with a high operating factor (subject to Transmission Provider concurrence) with the demonstrated ability to automatically remain operating, at reduced levels, when disconnected from the grid.


Blackout (System Shutdown)
A power outage (also power cut, blackout or power failure) is a short- or long-term loss of the electric power to an area. In other words, the lights go out at homes and businesses in the impacted area. This system shutdown can be brought on by an emergency-forced outage in the generation, transmission or distribution system serving the area.

Board of Managers

The PJM Board is the Board of Managers of PJM Interconnection.


Bottled Energy/Capacity

Energy/capacity that is available at the source but that cannot be delivered to the point of use because of restrictions in the transmission system.


Bulk Electric System

Includes individual generation resources larger than 20 MVA or a generation plan with aggregate capacity greater than 75 MVA that is connected via a step-up transformer(s) to facilities operated at voltages 100 kV or higher; lines operated at voltages 100 kV or higher; transformers (other than generator step-up) with both primary and secondary windings of 100 kV or higher; and associated auxiliary and protection and control system equipment that could automatically trip a BES facility, independent of the protection and control equipment’s voltage level.


Bulk Power Transmission Facilities
Those transmission facilities with nominal operating voltage of 230 kV or greater and such other transmission facilities as may have a material impact on the reliability, security or constrained operation of transmission facilities with a nominal operating voltage of 230 kV or greater.

Bulletin Board

The Bulletin Board is an Internet application created to facilitate power contracting activity. The application is available to the public through sponsorship by the ISO/RTO Council (IRC) in order to provide users with access to a larger pool of buyers and sellers of contracts for electric power. The Bulletin Board allows users to view, post and modify requests to buy or offers to sell power. PJM and the IRC are not a party to any contracts that result from postings on this bulletin board and such contracts will not be settled via ISO/RTO settlements.


Bus
An interconnection point.

C
CAES

Compressed Air Energy Storage (CAES) is a way to store energy generated at one time for use at another time. At utility scale, energy generated during periods of low energy demand (off-peak) can be released to meet higher demand (peak load) periods.


Calculated Operating Capacity
PJM Load 1, plus total Operating Reserve, plus untelemetered generation and pumping load, minus net tie flow.

Capacitor Capability

A device whose primary purpose is to introduce volt-amperes reactive into an electrical circuit. Shunt capacitors are normally used to produce reactive power for voltage control. Series capacitors are normally used to reduce the effective reactance of a circuit.


Capacity
System capacity is the total amount of electricity resources available to use if needed. Throughout the year, PJM must have enough resources, plus an additional reserve, to supply the greatest amount of electricity used in one hour.

Capacity Benefit Margin (CBM)
The portion of PJM’s emergency import capability that is deducted from Total Transfer Capability to determine Available Transfer Capability. CBM is reserved to import capacity assistance from external areas under emergency conditions. CBM allows a system to reduce its installed generating capacity below that which may have otherwise been required if transmission interconnections did not exist.

Capacity Capability
The rated load carrying capability of electrical equipment. May be further identified to more precisely indicate the ability being referred to; i.e., Rated Capacity, Maximum Capacity, Claimed Capacity, etc.

Capacity Credit
An entitlement to a specified number of MW of unforced capacity from a specific resource, for the purpose of satisfying capacity obligations imposed under the RAA.

Capacity Deficiency Rate (CDR)
The CDR was designed to reflect the annual fixed costs of a new combustion turbine (CT) in PJM and the annual fixed costs of the associated transmission investment, including a return on investment, depreciation and fixed operation and maintenance expense. The CDR is used in applying penalties for capacity deficiencies. To express the CDR in terms of unforced capacity, it must further be divided by the quantity 1 minus the EFORd.

Capacity Emergency
A state when a system’s or pool’s operating capacity plus firm purchases from other systems, to the extent available or limited by transfer capability, is inadequate to meet the total of its demand, firm sales and regulating requirements.

Capacity Emergency Transfer Limit (CETL)

Capacity Emergency Transfer Limit (CETL) is the capability of the transmission system to support deliveries of electric energy to a given area experiencing a localized capacity emergency as determined in accordance with the PJM Manuals.


Capacity Emergency Transfer Objective (CETO)
The amount of electric energy that a given area must be able to import in order to remain within a loss of load expectation of one event in 25 years when the area is experiencing a localized capacity emergency.

Capacity Factor
The ratio of the total energy generated by a generating unit for a specified period to the maximum possible energy it could have generated if operated at the maximum capacity rating for the same specified period, expressed as a percent.

Capacity Interconnection Rights

The rights to input generation as a Generation Capacity Resource into the Transmission System at the Point of Interconnection where the generating facilities connect to the Transmission System.


Capacity Modification (Cap Mod)
Transaction that enables generation owners to request the addition of a new unit or the removal of an existing unit from their resource portfolio in eRPM, or the request an MW increase or decrease in the summer or winter installed capacity rating of an existing unit.

Capacity Obligation
See Accounted-for-Obligation.

Capacity Position
Capacity Position = Capacity Resources – Capacity Obligation

Capacity Resource
Includes megawatts of net capacity from existing or planned generation capacity resources or load reduction capability provided by Demand Resources or ILR in the PJM Region.

Capacity Transfer Rights (CTR)
Rights used to allocate the economic value of transmission import capability that exists into a constrained LDA. Serve to offset a portion of the Locational Price Adder charged to load in constrained LDAs.

Carrying Charges

These costs are the time value of money associated with the project (i.e., AFUDC). The interest rate must be specified.


CDS

The Cost Development Subcommittee (CDS) reports to the PJM Markets and Reliability Committee (MRC) and is responsible for developing, reviewing, and recommending to the MRC standard procedures for calculating the costs of products or services provided to PJM when those products or services are required to be provided to PJM at a cost-based rate.


CEII

The Federal Energy Regulatory Commission (FERC) defines Critical Energy Infrastructure Information (CEII) as specific engineering, vulnerability, or detailed design information about proposed or existing critical infrastructure (physical or virtual) that relates details about the production, generation, transmission, or distribution of energy; could be useful to a person planning an attack on critical infrastructure; is exempt from mandatory disclosure under the Freedom of Information Act; and gives strategic information beyond the location of the critical infrastructure.


CERTS

The Consortium for Electric Reliability Technology Solutions (CERTS) was formed in 1999 to research, develop, and disseminate new methods, tools, and technologies to protect and enhance the reliability of the U.S. electric power system and efficiency of competitive electricity markets.


Charging Current
The current that flows in a circuit or transformer when voltage is first applied to its de-energized terminals. Due to the inherent capacitance of the facility.

Circuit
A system of conductors and its component parts through which an electrical current flows or is intended to flow.

Circuit Breaker
A circuit breaker is a switching device capable of starting, carrying and stopping electrical currents under normal circuit conditions. It also can start and carry currents for a specified time and stop currents under specified abnormal conditions such as a short circuit.

Cogeneration
Production of electricity with heat or other forms of energy produced as a by-product of the process.

Coincidental Peaks

The unrestricted load of a zone, LSE, or end-use customer, coincident with one of the five highest loads used in the weather normalization of the PJM seasonal peak. 5 CP values are used in the allocation of the PJM and zonal normalized peaks.


Combined Cycle
An electric generating technology in which electricity and process steam are produced from otherwise lost waste heat exiting from one or more combustion turbines. The exiting heat is routed to a conventional boiler or to a heat recovery steam generator for use by a conventional steam turbine in the production of electricity. This process increases the efficiency of the electric generating facility.

Combustion Turbine
A generating unit in which a combustion turbine engine is the prime mover for an electrical generator. It is typically used for peak shaving operation due to quick response capability.

Completed Application
An Application that satisfies all of the information and other requirements of the Tariff, including any required deposit.

CONE

Levelized annual cost in ICAP $/MW-Day of a reference combustion turbine to be built in a specific location.


Congestion
Heavy use of the electricity grid produces congestion, a situation in which the lowest-priced electricity can’t flow freely to a specific area. PJM’s locational marginal pricing system takes account of congestion in determining electricity prices. It reflects the value of the energy at the specific location and time it is delivered. LMPs sends price signals that identify congestion and encourage new transmission facilities, new generation or demand response initiatives in areas where congestion is common. When the lowest-priced electricity can reach all locations, prices are the same across the entire PJM grid. When there is heavy use of the transmission system, the lowest-priced energy cannot flow freely to some locations. In that case, more-expensive but advantageously located electricity is ordered to meet that demand. As a result, the locational marginal prices are higher on the receiving end of the congestion and lower on the sending end.

Congestion Cost

The price that represents the inability to use the least expensive generation to meet the electricity demand due to transmission limitations.


Consortium for Electric Reliability Technology Solutions

The Consortium for Electric Reliability Technology Solutions (CERTS) was formed in 1999 to research, develop, and disseminate new methods, tools, and technologies to protect and enhance the reliability of the U.S. electric power system and efficiency of competitive electricity markets.


Constrained Posted Path
Any posted path having an ATC less than or equal to 25 percent of TTC at any time during the preceding 168 hours or for which ATC has been calculated to be less than or equal to 25 percent of TTC for any period during the current hour or the next 168 hours. (§ 37.6, defined in FERC Order 889)

Construction Costs
Refer to PJM OATT section 50.15. The cumulative sum of all costs and expenses including, but not limited to, capital expenditures and if applicable, overhead, return, cost of financing and taxes, and any incidental expenses expended to complete the construction of a particular
project.

Contingency
An event, usually involving the loss of one or more elements that affects the power system at least momentarily.

Continuing Education Hour (CEH)
A Continuing Education Hour is a clock measurement for continuing education programs that is awarded to individuals who participate in activities organized to provide planned training based learning outcomes, requires a demonstration by learners that the outcomes
have been achieved, and meets specific criteria.

One CEH is equal to one contact hour (60 minutes) of organized training activity if sponsored by a responsible party.

Contract

An agreement for a seller to supply energy to a buyer for a designated period of time according to InSchedule.


Contract Capacity
The number of megawatts of electric power that an LSE has provided to meet its obligations for electric generating capacity.

Contract Path
A specific contiguous electrical path from a Point of Receipt to a Point of Delivery for which transfer rights have been contracted.

Control Area

PJM Control Area shall mean the Control Area recognized by the North American Electric Reliability Corporation as the PJM Control Area. (RAA Section 1.41).


Control Area (Balancing Authority)
An electric power system or combination of electric power systems bounded by interconnection metering and telemetry to which a common generation control scheme is applied in order to:
- Match the power output of the generators within the electric power system(s) and energy purchased from entities outside the electric power system(s), with the load within the electric power system(s)
- Maintain scheduled interchange with other Control Areas, within the limits of Good Utility Practice
- Maintain the frequency of the electric power system(s) within reasonable limits in accordance with Good Utility Practice and the criteria of the applicable regional reliability council of NERC
- Maintain power flows on Transmission Facilities within appropriate limits to preserve reliability: and
- Provide sufficient generating Capacity to maintain Operating Reserves in accordance with Good Utility Practice.

Control Zone

An area within the PJM Control Area, as set forth in the PJM Open Access Tariff and the Reliability Assurance Agreement (RAA).  Schedule 16 of the RAA defines the distinct zones that comprise the PJM Control Area.


Conversational Monitor System

The interactive user interface software for IBM’s Virtual Machine operating system.


Converter
An operative unit comprised of either a rectifier or inverter bridge connected to an AC system through transformers and switching through transformers and switching devices with the associated control equipment.

Converter Transformer

A power transformer that transfers the energy from the thyristor valves to the connected AC system and vice versa.


Coordinated Transaction Scheduling
Coordinated Transaction Scheduling refers to efforts between PJM and neighboring ISO/ RTOs to better align the two systems’ markets. Recently, PJM and NYISO explored CTS between their two systems as part of ongoing efforts to address emerging seams issues across the shared interface between the NYISO and PJM. The objective of CTS is to improve the overall interchange scheduling efficiency between NYISO and PJM. The CTS proposal provides an additional scheduling option that is expected to increase both forward price transparency and market efficiency. Additionally, the CTS proposal should create significant opportunity for increased efficiency over the shared interface between NYISO and PJM in regards to price convergence, utilization and flow direction.

Cost Development Subcommittee

The Cost Development Subcommittee (CDS) reports to the PJM Markets and Reliability Committee (MRC) and is responsible for developing, reviewing, and recommending to the MRC standard procedures for calculating the costs of products or services provided to PJM when those products or services are required to be provided to PJM at a cost-based rate.


Cost of New Entry

Levelized annual cost in ICAP $/MW-Day of a reference combustion turbine to be built in a specific location.


Cost-Based Offers

Offers that shall not exceed the variable cost of producing such energy or other service, as determined in accordance with the Cost Development Guidelines. Cost based offers are used by PJM to schedule generation in cases in which structural market power is found to exist.


Cranking Unit
A generating unit that may be started with complete isolation from external sources. See black start units.

Critical Energy Infrastructure Information (CEII)

The Federal Energy Regulatory Commission (FERC) defines Critical Energy Infrastructure Information (CEII) as specific engineering, vulnerability, or detailed design information about proposed or existing critical infrastructure (physical or virtual) that relates details about the production, generation, transmission, or distribution of energy; could be useful to a person planning an attack on critical infrastructure; is exempt from mandatory disclosure under the Freedom of Information Act; and gives strategic information beyond the location of the critical infrastructure.


CRM
A Microsoft customer relationship management system being used by divisions across PJM as a single repository for all member and non-member interactions. This software is the platform for creating a 360-degree view of our clients.

CTR Settlement Rate
The CTR Settlement Rate ($/MW-day) is equal to the Economic Value of CTRs allocated to LSEs in a zone as a result of the Base Residual Auction and Second Incremental Auction divided by the Total CTR MWs allocated to LSEs in the zone.

Current
An electric current is the movement of an electric charge.

Curtailment
A reduction in firm or non-firm transmission service in response to a transmission capacity shortage as a result of system reliability conditions.

Curtailment Service Provider
Member or Special Member, whose action on behalf of itself or one or more other Members or non-members, participates in the PJM Interchange Market by causing a reduction in demand.

Customer Account Manager
Customer Account Manager (CAM) enables external customers to manage their own PJM user accounts. This application has the following functions:
- Modify existing user accounts
- Create new user accounts
- View all user accounts for a company (Note: This only applies for those applications integrated into the MUI)
- Download user information

D
Daily Capacity Resource Deficiency Charge
Assessed to party when the Daily RPM Resource Position of its resource is less than the Daily RPM Resource Commitment for such resource on a delivery day. This charge is applicable to generation resource, Demand Resource, or Qualified Transmission Upgrade.

Daily Load and Capacity File

The Daily Load and Capacity (DLC) File is a database used for storing actual hourly load data entered by the Load Serving Entities.


Daily Unforced Capacity Obligation
Equals the LSE’s Obligation Peak Load in the zone/area * the Final Zonal RPM Scaling Factor * the Forecast Pool Requirement for an LSE in a zone/area.

Data Miner

Data Miner provides a method for requesting specific public data through the website as well as a method for making system-to-system requests (via Web Services). This enhancement enables stakeholders to request public data over a date range of their choosing, as well as for specific pnodes, and allows this data to be downloaded in formats that are easier to analyze and manage (.csv, .xml). While this application provides extended capability for the user, the existing methods and formats for retrieving public data from pjm.com have not been affected.


Day-Ahead Demand
The fixed and/or price-sensitive demand bids cleared in the PJM Day-Ahead Energy Market (financial hedge).

Day-Ahead Energy Market
A day-ahead hourly forward market in which PJM market participants may submit offers to sell and bids to buy energy. The results of the Day-Ahead Energy Market are posted daily at 4:00 p.m. and are financially binding. The Day-Ahead Energy Market is based on the concept
of Locational Marginal Pricing and is cleared using least price security-constrained unit commitment and dispatch programs.

Day-Ahead Scheduling Reserve Market
Voluntary, offer-based market for 30-minute (supplemental) reserves that can be provided by both Generation and Demand Resources. Clears the Day- Ahead 30-minute reserve requirement simultaneously with Day-Ahead Energy Market.

DCS

Disturbance Control Standard (DCS) is the NERC DCS measures the ability of a control area to return Area Control Error either to zero or to its initial value following the loss of a large generating unit.


Dead (De-energized)

Free from any electrical connection to a voltage source and from an electric charge; not having a potential different from that of ground.


Decrement Bids
An hourly bid, expressed in MWh, to purchase energy in the PJM Day-Ahead Energy Market if the Day-Ahead LMP is less than or equal to the specified bid price. This bid must specify hourly quantity, bid price and location (transmission zone, hub, aggregate or single bus).

Deficiency Charge
Cost to participant that is responsible for a non-zero deficiency value in either the Accounted-for-Obligation or Peak Period Maintenance Obligation process. See Schedule 7 and Schedule 11 of RAA.

Delayed Outage
A Forced/Unplanned Outage that may be delayed for up to 6 hours.

Delivering Party
The entity supplying capacity and energy to be transmitted at Point(s) of Receipt.

Delivery Year
Planning period for which resources are being committed and for which a constant load obligation for the entire PJM region exists. For example, the 2007/2008 Delivery Year corresponds to the June 1, 2007 – May 31, 2008 Planning Period.

Demand
Demand is the rate at which electric energy is used at a given instant or averaged over a designated interval of time. It is generally expressed in kilowatts or megawatts.

Demand Bid (Fixed)
An hourly bid, expressed in MWh, that may be submitted into the Day-Ahead Energy Market to purchase a certain amount of energy at Day-Ahead LMP. Fixed Demand Bids must specify hourly quantity and location (transmission zone, aggregate or single bus).

Demand Bid (Price-Sensitive)
An hourly bid, expressed in MWh, that may be submitted into the Day-Ahead Energy Market to purchase a certain amount of energy at Day-Ahead LMP only if the Day- Ahead LMP value is less than or equal to the specified bid price. Price-sensitive Demand Bids must specify
hourly quantity, bid price and location (transmission zone, aggregate or single bus).

Demand Hours
The time interval each day on a particular system in which there is a heavy demand for electricity. For PJM, it is the time period beginning 8:00:01 and ending 22:00:00, inclusive.

Demand Resource
A resource with a demonstrated capability to provide a reduction in demand or otherwise control load. A Demand Resource may be an existing or planned resource.

Demand Resource Factor (DR Factor)
Used to determine the reliability benefit of demand resource products and to assign an appropriate value to demand resource products. The DR Factor is calculated by PJM and is approved and posted by February 1 prior to its use in the Base Residual Auction for the Delivery Year.

Demand Resource Modification (DR Mods)
Transaction used by PJM to track an increase or decrease of the nominated value of the Demand Resource in a party’s resource portfolio in eRPM.

Demand Response
Demand response is end-use (retail) customers, such as homes and businesses, voluntarily reducing their electricity usage when the electric grid is stressed or power prices are high, in return for payment.

Demand Side Management
Program designed to provide an incentive to end-use customers or curtailment service providers to enhance the ability and opportunity for reduction of load when PJM LMP is high.

Demand Side Response

Demand Side Response is a voluntary change in electricity usage by a customer in response to price or an emergency event affecting grid reliability.


Department of Energy

The Department of Energy (DOE) is principally a national security agency and all of its missions flow from this core mission to support national security. The DOE's overarching mission is to advance the national, economic, and energy security of the United States; to promote scientific and technological innovation in support of that mission; and to ensure the environmental cleanup of the national nuclear weapons complex.


Designated Agent
Any entity that performs actions or functions on behalf of the Transmission Provider, an Eligible Customer, or the Transmission Customer required under the Tariff.

Designated Transmission Facilities
Those transmission facilities owned by a Transmission Owner that are within the PJM RTO, are identified in the listing of such facilities maintained by PJM, and have a nominal operating voltage of 230 kV or greater or are facilities operating at a nominal voltage of less than 230
kV that:
- are vital to the operation of the PJM RTO
- can, if subject to an outage, have a significant impact on transmission facilities with a nominal operating voltage of 230 kV or greater
- affect the capability and reliability of generating facilities or the power system model used by PJM
- can have an effect on the PJM RTO's interconnected operation with other Control Areas.

Direct Assignment Facilities
Facilities or portions of facilities that are constructed by an RTO at the direction of the Transmission Provider for the sole use/benefit of a particular Transmission Customer requesting service under the Tariff. Direct Assignment Facilities shall be specified in the Service Agreement that governs service to the Transmission Customer and shall be subject to Commission approval.

Direct Costs
These are costs directly associated with the project. These costs need to be separated into:
- Direct Labor costs which include the cost of labor to design/build/install the upgrade or facilities and
- Direct Material costs which include the cost of the physical upgrades and equipment

Direct Current
A direct current is the movement of an electric charge from negative to positive that flows in only one direction. This is compared to an alternating current, which periodically reverses direction.

Disconnect Switch
A mechanical switching device used for changing the connections in a circuit or for isolating a circuit or equipment from a voltage source.

Dispatch Rate

The control signal, expressed in dollars per megawatt hour, calculated and transmitted continuously and dynamically to direct the output level of all generation resources dispatched by PJM in accordance with the Offer Data.


Dispatchable Generation
Generation available physically or contractually to respond to changes in system demand or to respond to transmission security constraints.

Distribution
Distribution is the final stage of delivering electricity to an end user. A distribution system steps down electricity from the higher voltage levels on the transmission system to deliver it directly to homes or businesses. See how the whole system works in an interactive graphic.

Distribution Factor
The term is generally applied to the percentage of power flowing on Element A that will be picked up (or backed down) on Element B as a result of an outage on Element A or a shift on generation.

Disturbance Control Standard (DCS)

The NERC DCS measures the ability of a control area to return Area Control Error either to zero or to its initial value following the loss of a large generating unit.


Diversified Peaks
The Diversified Peaks for the PJM zones are calculated based on the PJM weather normalized actual peak, diversity factor. Adjustments are made for summer and winter peaking LSEs.

Diversity Factor (DF)

A five-year rolling average value expressed in per-unit, quantifying seasonal (summer to winter) peak load shape for a given zone.


DLC File

The Daily Load and Capacity (DLC) File is a database used for storing actual hourly load data entered by the Load Serving Entities.


Dump Power
Energy generated that is beyond the needs of the producing system of which there is no economic value.

Dynamic Rating
The process that allows a system element rating to vary with the changing environmental conditions in which the element is located.

Dynamic Reserves
The amount of reserve that is available in order to
preserve the system during frequency disturbance.
Dynamic reserve consists of two components:

Reserve on generators that are available via generator
governor action during a frequency disturbance to a level
at which generators will normally separate from the
system (i.e., 57.5 Hz).

System load with under frequency trip levels above the
frequency at which generators will normally separate
from the system during a frequency disturbance (i.e.,
57.5 Hz).

Dynamic Schedule
A telemetered reading or value that is updated in real time and used as a schedule in the Automatic Generation Control/Area Control Error equation and the integrated value of which is treated as a schedule. Commonly used for “scheduling” commonly owned generation or remote load to or from another Control Area.

E
EAF

The equivalent availability factor (EAF) is the proportion of hours in a year that a unit is available to generate at full capacity.


Eastern Interconnection Planning Collaborative

The Eastern Interconnection Planning Collaborative (EIPC) was initiated by a coalition of regional Planning Authorities. These Planning Authorities are entities listed on the NERC compliance registry as Planning Authorities and represent the entire Eastern Interconnection.


Eastern Prevailing Time
Eastern Prevailing Time (EPT) is equivalent to Eastern Standard Time (EST) or Eastern Daylight Time (EDT) as is in effect from time to time.

Economic Demand Response

Provides the Curtailment Service Provider with the opportunity to reduce load when the wholesale price is higher than the generation and transmission portion of the customer's retail rate. Load reduction is performed by participants in response to an economic price signal, namely the Day-Ahead or the Real-Time Locational Marginal Price (LMP).


Economic Dispatch
The optimization of the incremental cost of delivered power by allocating generating requirements among the on-control units with consideration of such factors as incremental generating costs and incremental generating costs and incremental transmission losses.

Economic Generation
Units producing energy at an offer price less than, or equal to, LMP.

Economic Maximum Generation

The highest incremental MW output level a unit can achieve while following economic dispatch.


Economic Minimum Generation

The lowest MW output level a unit can achieve while following economic dispatch.


eCredit

eCredit is a Web tool used by PJM members to view their credit position, allocate credit between both subaccounts and markets within subaccounts (Financial Transmission Rights [FTR], Reliability Pricing Model [RPM] or energy), request collateral refunds, and view/download relevant credit reports.


eDART
eDART (Dispatcher Application and Reporting Tool) is an Internet application that allows generation and transmission owners to submit generation and transmission outage requests electronically. eDART allows its users to manage their outage data by viewing the status of their outages and obtaining outage reports.

eData

eData is an Internet application that enables all PJM stakeholders, including generation and transmission owners, traders and transmission customers to view PJM operational and market data graphically. Registered users have the ability to save customized tabs and panels for personal data presentation, while guest users are presented with a set of standardized displays.


eDataFeed

eDataFeed is a Web service that allows subscribers to select and “stream” PJM Locational Marginal Price (LMP) data, plus some operational data directly into their system. eDataFeed delivers information in a format called Simple Object Access Protocol (SOAP) that enables data capture, analysis and decision support to meet the trading, risk management and business decisions of PJM’s members (customers). PJM serves as an independent information clearinghouse as it coordinates the buying, selling and trading of electric energy and energy-related products among its member companies participating in the PJM markets.


EDC

An Electric Distribution Company (EDC) is a PJM Member that owns or leases with rights equivalent to ownership electric distribution facilities that are used to provide electric distribution service to electric load within the PJM Control Area.


Effective EFORd
The most recently calculated EFORd that has been bridged to the eRPM system. During the Delivery Year, the Effective EFORd is based on forced outage data from the October through September period prior to the Delivery Year. This is the basis for a unit’s UCAP value, and it does not include the events that are outside management control (OMC events).

Effective Equivalent Demand Forced Outage Rate
The forced outage rate used for reliability and reserve margin calculations. See the Generator Resource Performance Indices Manual (M-22) for the equation.

EFOF

The Equivalent Forced Outage Factor (EFOF) is the proportion of hours in a year that a unit is unavailable because of forced outages.


EFORd (Equivalent Demand Forced Outage Rate)
The portion of time a unit is in demand but is unavailable due to a forced outage. See the Generator Resource Performance Indices Manual (M-22) for the equation.

EFORd Offer Segment
The sell offer segment that specifies an installed capacity MW quantity not to exceed the product of the resource’s summer net capability of installed capacity and the potential increase in EFORd as determined in accordance with Section 6.7 (d) (iii) of Attachment DD of the PJM Tariff. A seller may specify a single EFORd Offer Segment for their ownership portion of a specific resource.

eFTR
eFTR (Financial Transmission Rights) is used by members and other transmission customers to manage their FTR portfolios. FTRs are financial contracts that entitle the holder to a stream of revenues or charges based on the hourly congestion price differences across a transmission path in the Day-Ahead Market. Participants may post FTRs for bilateral trading in addition to participating in scheduled monthly FTR auctions.

eGADS
The Generator Availability Data System (eGADS) is an Internet application that supports the submission and processing of generator outage and performance data as required by PJM and North American Electric Reliability Corporation (NERC) reporting standards.

EHV

Extra High Voltage (EHV) refers to 345kV and above on the PJM system.


EIPC

The Eastern Interconnection Planning Collaborative (EIPC) was initiated by a coalition of regional Planning Authorities. These Planning Authorities are entities listed on the NERC compliance registry as Planning Authorities and represent the entire Eastern Interconnection.


Electric Cooperative
An entity owned in cooperative form by its customers that is engaged in the generation, transmission, and/or distribution of electric energy.

Electric Distribution Company
Electric distribution companies own or lease electric distribution facilities that deliver electricity to end-use customers. An electric utility could be an electric distribution company.

Electric System Losses
Total electric energy losses in the electric system. The losses consist of transmission, transformation, and distribution losses between supply sources and delivery points. Electric energy is primarily due to heating of transmission and distribution elements.

Electric Utility
An electric utility is an entity involved in the generation, transmission or distribution of electricity for sale and for use by the general public. An electric utility can be investor owned, cooperatively owned or government owned such as a municipal system.

Electrical Energy
The generation or use of electric power by a device over a period of time, expressed in kilowatt-hours (kWh), megawatt hours (MWh) or gigawatt hours (GWh).

Eligible Customer
Any electric utility (including any RTO and any power marketer), federal power marketing agency, or any person generating electric energy for sale for resale;electric energy sold or produced by such entity maybe electric energy produced in the United States,Canada or Mexico; however, such entity is not eligible for transmission service that would be prohibited by Section 212(h)(2) of the Federal Power Act; and any retail customer taking unbundled Transmission Service pursuant to a state requirement that the Transmission Provider or an RTO offer the transmission service or pursuant to a voluntary offer of unbundled retail Transmission Service by an RTO.

eLRS

eLRS allows PJM members to administer the registration, notification, meter data and settlement process for demand side response resources in the PJM markets. Note that bids into the PJM wholesale market occurs directly in eMkt for energy and ancillary services and eRPM for capacity.


Emergency
An abnormal system condition requiring manual or automatic action to maintain system frequency, or to prevent loss of firm load, equipment damage, or tripping of system elements that could adversely affect the reliability of an electric system or the safety of persons or property; a fuel shortage requiring departure from normal operating procedures in order to minimize the use of such scarce fuel; or a condition that requires implementation of emergency procedures as defined in the PJM Manuals.

Emergency Capability
The amount of power transfer allowed between areas or within an area when operating to meet PJM Emergency criteria contingencies.

Emergency Demand Response

A commitment to reduce load or consume electricity only up to a certain level when PJM needs assistance under expected emergency conditions (also called Load Management).


Emergency Maximum Generation Limit
The total output of generation that can be produced by a unit and still maintain it at a stable level of operation.

Emergency Minimum Generation Limit
The least amount of generation that can be produced by a unit and still maintain it at a stable level of operation.

Emergency Response Rate
The rate of load change that a generating unit can achieve under emergency conditions, such as loss of a unit, expressed in megawatts per minute (MW/Min).

eMKT
A computerized information system developed as an Internet application that is the Market Participant interface to the PJM Day-Ahead Energy Market and Real-Time Energy Market. This application provides an interface for Market Participants to submit Generation Offer Data Demand Bids, Increment Offers, Decrement Bids and Regulation Offers and to view Day-Ahead Energy Market Results and Regulation Market Results on a daily basis.

eMKT

eMKT allows PJM members to submit information and obtain data needed to conduct business in the Day-Ahead, Regulation and Synchronized Reserve markets.


End-Use (Retail) Customer

An end-use customer or retail customer is the final consumer of electrical energy, as opposed to one who sells or resells it. A retail customer purchases electricity through an electric distribution company or a competitive supplier that does not own distribution facilities.


Energy
Broadly defined, energy is the ability to do work. Electrical energy is produced by a generator, which converts other forms of energy (e.g. a power plant burning coal or a windmill turning moving air into energy) into electrical energy that is then transmitted through the electric transmission and distribution systems. It is measured in kilowatt-hours and megawatt-hours.

Energy Emergency
A condition when a system or power pool does not have adequate energy resources (including water for hydro units) to provide its customers’ expected energy requirement.

Energy Exchange
Transaction whereby the receiver accepts delivery of energy for a supplier’s account and returns energy later at times, rates, and in amounts as mutually agreed.

Energy Imbalance Service
Used to supply energy for mismatch between scheduled delivery and actual loads that have occurred over an hour.

Energy Management System

Energy Management System (EMS) provides real-time monitoring of operational information for all critical electrical equipment - information that is central to reliable operation of the bulk power system.


Energy Market
An energy market is a type of spot market in which energy is sold or purchased for immediate delivery. Because electricity is a commodity that is consumed the same moment it is produced, by its nature, energy is delivered immediately upon sale or purchase. PJM's energy market functions at a wholesale level. These energy markets operate every day and participants in the market establish a price for electricity by matching supply (what generators want to sell) and demand (what utilities and customers want to buy). Utilities and competitive retailers that purchase energy from a wholesale market resell it to final consumers at retail rates or prices.

Energy Market Opportunity Cost

“Energy Market Opportunity Cost” shall mean the difference between (a) the forecasted cost to operate a specific generating unit when the unit only has a limited number of available run hours due to limitations imposed on the unit by Applicable Laws and Regulations (as defined in PJM Tariff), and (b) the forecasted future hourly Locational Marginal Price at which the generating unit could run while not violating such limitations. Energy Market Opportunity Cost therefore is the value associated with a specific generating unit’s lost opportunity to produce energy during a higher valued period of time occurring within the same compliance period, which compliance period is determined by the applicable regulatory authority and is reflected in the rules set forth in PJM Manual 15. Energy Market Opportunity Costs shall be limited to those resources which are specifically delineated in Schedule 2 of the Operating Agreement.


Energy MW
Megawatt loading of a machine.

Enhanced Energy System

The Enhanced Energy System (EES) is an online ramp reservation tool for external control area transactions into and out of the PJM control area.


Environmental Protection Agency

The mission of the United States Environmental Protection Agency is to protect human health and the environment.


EPOF

The Equivalent Planned Outage Factor (EPOF) is the proportion of hours in a year that a unit is unavailable because of planned outages.


Equivalent availability factor (EAF)

The equivalent availability factor is the proportion of hours in a year that a unit is available to generate at full capacity.


Equivalent Demand Forced Outage Rate (EFORd)
A measure of the probability that generating unit will not be available due to a forced outages or forced deratings when there is a demand on the unit to generate. See Generator Resource Performance Indices Manual (M-22) for equation.

Equivalent Demand Forced Outage Rate (EFORd-5)
EFORd determined based on five years of outage data through September 30 prior to the Delivery Year. This is an index similar to EFORd that is the basis for a unit’s UCAP value for the Delivery Year, and it does not include the events that are outside management control (OMC events). The index is calculated using Generator Availability Data System (GADS) data in PJM. If a generating unit does not have a full 5 years of history, the EFORd-5 will be calculated using class average EFORd and the available history as described in Reliability Assurance Agreement, Schedule 5, Section C. The class average EFORd will be used for a new generating unit. The class average EFORds that are used by PJM to calculate a unit’s EFORd-5 are posted to the PJM website by November 30 prior to the Delivery Year.

Equivalent Forced Outage Factor (EFOF)

The equivalent forced outage factor is the proportion of hours in a year that a unit is unavailable because of forced outages.


Equivalent Load
The sum of an Internal Market Buyer’s net system requirements to serve its customer load in the PJM RTO, plus its net bilateral transactions.

Equivalent Maintenance Outage Factor
The equivalent maintenance outage factor is the proportion of hours in a year that a unit is unavailable because of maintenance outages.

Equivalent Outage Hours
The number of hours a unit was involved in an outage, expressed as equivalent hours of full outage at its maximum net dependable capacity. Equivalent hours can be calculated for forced, maintenance, or planned outages.

Equivalent Planned Outage Factor (EPOF)

The equivalent planned outage factor is the proportion of hours in a year that a unit is unavailable because of planned outages.


eRPM

The PJM eRPM system is an Internet-based application used by Market Participants to submit resource-specific sell offers or buy bids into RPM Auctions.


ETG

Extra-Territorial Generation (ETG) is entitlement to generation that is external to a system’s service area.


EWG

Exempt Wholesale Generators (EWG) are small power producer and co-generator facilities that meet certain criteria (qualifying facilities – QFs) to be exempted in whole or in part from federal and state utility regulation.


Exempt Wholesale Generator (EWG)

Small power producer and co-generator facilities that meet certain criteria (qualifying facilities - QFs) to be exempted in whole or in part from federal and state utility regulation.


ExSchedule

ExSchedule is an Internet application that facilitates the interchange of bulk power between the PJM control area and other control areas by enabling market participants to request, evaluate and confirm their external bilateral transactions. Participants may submit both day-ahead and real-time transactions to the two-settlement system via ExSchedule.


Extended Summer Demand Resources

Demand Resources which can be called on as many times as needed from 10 a.m. to 10 p.m. any day from June through October and the following May of that delivery year.


External Market Buyer
A Market Buyer making purchases of energy from the PJM Interchange Market for consumption by end-users outside the PJM RTO or for load in the Control Area that is not served by Network Transmission Service.

External Resource
A generation resource located outside the metered boundaries of the PJM RTO.

External Transaction
An energy transaction between two parties in which the path of the energy crosses a PJM RTO border.

Extra High Voltage (EHV)

This refers to 345kV and above on the PJM system.


Extra-Territorial Generation (ETG)

Entitlement to generation that is external to a system's service area.


F
Facilities Study
An engineering study conducted by the Transmission Provider to determine the required modifications to the Transmission Provider's Transmission System, including the cost and scheduled completion date for such modifications, that are required to provide the requested
transmission service.

Facilities Study Agreement
Refer to PJM OATT section 36.6 for Generation Interconnection projects and OATT section 41.5 for Transmission Interconnection projects. The agreement, in the form of Attachment N-2 to the Tariff, that must be executed by a Generation and/or Transmission Interconnection Customer to authorize PJM to proceed with an Interconnection Facilities Study. The agreement obligates the Interconnection Customer to reimburse PJM for the cost of the Facilities Study and may contain reasonable milestone dates that the Interconnection Customer must meet to retain its assigned priority while PJM is completing the Interconnection Facilities Study. PJM shall provide the Interconnection Customer with an estimate of the time needed to complete the Facilities Study, and if more than one Interconnection Request is being evaluated in the study, the Interconnection Customer’s allocated share of the costs.

Fault
A physical condition that results in the failure of a component or facility of the transmission system to transmit electrical power in a manner for which it was designed.

Feasibility Study
Refer to PJM OATT section 36.2 for Generation Interconnection projects and OATT section 41.2 for Transmission Interconnection projects. A Feasibility Study is the initial evaluation to make a preliminary determination of the type and scope of the work required to interconnect a proposed Customer Facility (Generation Facility or Transmission Facility) to the electrical Transmission System. The Feasibility Study Report assesses the practicality of the proposed interconnection, identifies the Attachment Facilities, Local Upgrades and Network Upgrades that are necessary to accommodate the Interconnection Request and provides a preliminary estimate of the cost and time that will be required to construct any necessary facilities and upgrades. The Feasibility Study analysis is limited to short-circuit studies and load-flow analysis of probable contingencies.

Feasibility Study Agreement
Refer to PJM OATT section 36.1 for Generation Interconnection projects and OATT section 41.1 for Transmission Interconnection projects. The agreement, in the form of attachment N to the Tariff for Generation Interconnection projects and in the form of Attachment S to the Tariff for Transmission Interconnection projects, that must be executed by a Generation and/or Transmission Interconnection Customer and submitted to PJM to request and authorize PJM to proceed with an Interconnection Feasibility Study. The agreement obligates the Interconnection Customer to reimburse PJM for the cost of the Feasibility Study and must provide sufficient information and data about the requested interconnection for proper modeling in the study.

Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (FERC) is an independent regulatory agency within the U.S. Department of Energy. The FERC regulates the transmission and wholesale sales of electricity in interstate commerce. The FERC also administers accounting and financial reporting regulations and conduct of jurisdictional companies.


FERC Order 888/889
This is the Federal Energy Regulatory Commission’s order issued on April 24, 1996, that defines the requirements for OASIS.

Field Forcing
The ability of a generator’s excitation system to increase excitation voltage during a transient disturbance to return the generators terminal voltage to normal.

File Download

Transfer of a file from PJM’s website or tools to the user’s personal computer.


File Upload

Transfer of a file from the user’s personal computer to PJM’s website or tools.


Final RTO Unforced Capacity Obligation
Determined after the clearing of the Second Incremental Auction and is posted with the Second Incremental Auction results. The Final RTO Unforced Capacity Obligation is equal to the sum of the unforced capacity obligation satisfied through the BRA and Second Incremental Auction plus the Forecast RTO Interruptible Load for Reliability (ILR) Obligation. If a Second Incremental Auction is not conducted, the Final RTO Unforced Capacity Obligation is equal to the sum of the unforced capacity obligation satisfied through the BRA plus the Forecast RTO Interruptible Load for Reliability (ILR) Obligation.

Final Zonal Capacity Prices
Determined by PJM after the ILR Resources are Certified (3 months prior to the Delivery Year). Final Zonal Capacity Prices reflect the final price adjustments that are necessary to account for (a) potential changes in the unforced value of the Interruptible Load for Reliability (ILR) resources certified for the Delivery Year in comparison to the Forecast RTO ILR Obligation and (b) potential decreases in nominated values of existing demand resources cleared in the Base Residual Auction and Second Incremental Auction.

Final Zonal RPM Scaling Factors
Used in determining an LSE’s Daily Unforced Capacity Obligation. A Final Zonal RPM Scaling Factor for a zone is equal to the Final Zonal Unforced Capacity Obligation divided by (FPR times the Zonal Weather Normalized Peak for the summer prior to the Delivery Year). The Final Zonal RPM Scaling Factors are posted by January 5th prior to the start of the Delivery Year.

Final Zonal Unforced Capacity Obligation
Determined for each zone and is equal to the Base Zonal Unforced Capacity Obligation plus [the unforced capacity obligation satisfied in the Second Incremental Auction * zone’s percentage allocation of the obligation satisfied in the Second Incremental Auction. If a Second Incremental Auction is not conducted, the Final Zonal Unforced Capacity Obligation is equal to the Base Zonal Unforced Capacity Obligation. The Final Zonal Unforced Capacity Obligations are posted with the Second Incremental Auction results.

Financial Transmission Right

A Financial Transmission Right (FTR) is a financial instrument awarded to bidders in the FTR Auctions that entitle the holder to a stream of revenues (or charges) based on the hourly Day Ahead congestion price differences across the path.


Firm Point-to-Point Transmission Service
Transmission Service that is reserved and/or scheduled between specified Points of Receipt and Delivery.

Firm Transmission Service
Transmission service that is intended to be available at all times to the maximum extent practicable, subject to an emergency, and unanticipated failure of a facility, or other event beyond the control of the owner or operator of the facility, or other event beyond the control of the owner or operator of the facility or the Office of the Interconnection.

First Contingency Basis
Operation of the bulk power electric supply system in the PJM RTO in a manner intended to protect against the consequences of the failure or malfunction of any single bulk power facility, such that prior to a contingency occurring
- The loading on all such bulk power facilities is maintained within normal continuous ratings, and
- Voltages are maintained at predetermined normal schedules at all load levels; and such that
- Immediately following any single facility malfunction or failure
- The loading on all remaining facilities can be expected to be within emergency ratings,
- System stability is maintained, and
- An acceptable voltage profile is maintained.

Fixed Demand Bid
Purchases of a defined MW level of energy, regardless of LMP in the Day-Ahead Market.

Fixed Resource Requirement

Fixed Resource Requirement (FRR) is an alternative method for a Party to satisfy its obligation to provide Unforced Capacity. Allows a load serving entity to avoid direct participation in the RPM Auctions by meeting their fixed capacity resource requirement using internally owned capacity resources.


Flat Frequency Control
A mode of generation control where the only control objective is to utilize all regulating generators to control frequency at a scheduled level.

Flat Tie-Line Control
A mode of generation control where the only control objective is to utilize all regulating generators to control net tie-line flows at a scheduled level.

Flexible Self-Scheduled Resources
Resources specified by an LSE in the Base Residual Auction to provide a mechanism to manage quantity uncertainty related to the Variable Resource Requirement. For each resource-specific sell offer, the LSE must designate a flexible self-scheduling flag as well as an offer price that will be utilized in the market clearing in the event the resource is not needed to cover a specified percentage of the LSE’s capacity obligation. Flexible self-scheduled resources will automatically clear the auction if they are needed to supply the LSE’s resulting capacity obligation.

Forced Outage
An outage results in the immediate de-ration or unavailability of a generating unit due to a failure. (See Generator Forced/Unplanned Outage.)

Forced Transmission Outage
An immediate removal from service of a Designated Transmission Facility by reason of an Emergency or threatened Emergency, unanticipated failure, or other cause beyond the control of the owner or operator of the Designated Transmission Facility (as specified in the relevant portions of the PJM Manuals), but not a removal from service of a Designated Transmission Facility in response to or in order to affect market conditions.

Forecast LSE Obligation
Forecast LSE Obligation (MW) is a Party’s obligation established pursuant to Section 7.1(d) of the Reliability Assurance Agreement.

Forecast Obligation
The amount of Capacity Resources that a PJM Member is obligated to install or contract for to satisfy the requirements for the Planning Period.

Forecast Pool Requirement

Forecast Pool Requirement (FPR) is the amount equal to one plus the unforced reserve margin (stated as a decimal number) for the PJM Region.


Forecast Zone Requirements
Individual zonal requirements based on Forecast Pool Requirements and zonal load values.

FPR

Forecast Pool Requirement (FPR) is the amount equal to one plus the unforced reserve margin (stated as a decimal number) for the PJM Region.


Frequency Bias
A value, usually given as MW/0.1 Hz, associated with a control area that relates the difference between scheduled and actual frequency to the amount of generation required to correct the difference.

Frequency Disturbance
A system frequency deviation from normal as a result of a generation/load imbalance.

Frequently Mitigated Unit (FMU)

A unit that was offer-capped for more than a defined proportion of its real-time run hours in the most recent 12-month period. FMU thresholds are 60 percent, 70 percent and 80 percent of run hours. Such units are permitted a defined adder to their cost-based offers in place of the usual 10 percent adder.


FRR Capacity Plan
A long-term plan for the commitment of Capacity Resources to satisfy the capacity obligations of a Party that has elected the FRR alternative.

FRR Service Area
The service territory of an IOU as recognized by state law, rule, or order; the service area of a Public Power Entity or Electric Cooperative as recognized by franchise or other state law, rule, or order; or a separately identifiable geographic area that is bounded by wholesale metering, or similar appropriate multi-site aggregate metering, that is visible to and regularly reported to the Office of Interconnection or an EDC who agrees to aggregate the meters’ load data for the FRR Service Area and regularly report the information to the Office of Interconnection or for which the FRR Entity has or assumes the obligation to provide capacity for all load (including load growth) within the area excluding the load of Single-Customer LSEs that are FRR Entities. In the event that the service obligations of an Electric Cooperative or Public Power Entity are not defined by geographic boundaries but by physical connections to a defined set of customers, the FRR Service Areas is defined as all customers physically connected to transmission or distribution facilities of the Electric Cooperative or Public Power Entity within an area bounded by appropriate wholesale aggregate metering as described above.

FTR

A Financial Transmission Right (FTR) is a financial instrument awarded to bidders in the FTR Auctions that entitle the holder to a stream of revenues (or charges) based on the hourly Day Ahead congestion price differences across the path.


FTR Auction
A monthly market for FTR trading that is administered by PJM in which PJM Market Participants and Transmission Customers may submit offers to sell and bids to buy on-peak or off-peak FTRs. FTRs awarded in this auction have a term of one calendar month.

Fuel Cost
The cost of the fuel used by each unit expressed in $/MBTU. When multiplied by the incremental heat rate (MBTU/MWh), the incremental fuel cost ($/MWh) results.

Full Requirements Service
Wholesale service to supply all of the power needs of a LSE to serve end-users within the PJM Region that are not satisfied by its own generation facilities.

Future Unit
A unit to be placed in service at some future time, as indicated in a forecast installed capacity schedule.

G
Galvin Electricity Initiative

The Galvin Electricity Initiative is leading a campaign to create a perfect power system. A perfect power system cannot fail the consumer. It is environmentally sound and fuel-efficient. It is robust and resilient; able to withstand natural and weather-related disasters and mitigate the potential damage caused by terrorist attack. The perfect power system provides affordable electricity to all consumers and allows consumers to control their own energy use to the extent they choose.


Gas Pipeline

The purpose of the gas pipeline application is to monitor critical notifications about the gas pipelines that supply natural gas to generators contributing their capacity to PJM. Upon detection of a critical notification the system will display the critical notifications to users accessing the system.


GEBGE
PJM reliability computer program that contains three support programs called MEGAWATT, CAPMOD, and CURTAIL.

Generating Availability Data System (GADS)
A computer program and database used for entering, storing, and reporting generating unit data concerning outages and unit performance.

Generating Market Buyer
An Internal Market Buyer that owns or has contractual rights to the output of generation resources capable of serving the Market Buyers load in the PJM RTO or of selling energy or related services in the PJM Interchange Energy Market or elsewhere.

Generating Unit Event Request
The “ticket” or form on which a request for any change in a generating unit’s capability is recorded by PJM.

Generation
Generation describes both the process of producing electrical energy from other forms of energy (e.g. a power plant burning coal or a windmill turning moving air into energy) as well as the amount of electric energy produced, which is usual expressed in kilowatt-hours (kWh) or megawatt-hours (MWh). See an interactive graphic that shows how generation, transmission and distribution work on the grid.

Generation Capacity Resource
Generation Capacity Resource shall mean a generation unit, or the right to capacity from a specified generation unit, that meets the requirements of Schedules 9 and 10 of the Reliability Assurance Agreement. A Generation Resource may be an existing Generation Resource or a Planned Generation Resource.

Generation Offer
Schedules of MW offered and the corresponding offer price.

Generation Outage Rate Program (GORP)

A computer program maintained by the Generator Unavailability Subcommittee that uses GADS data to calculate outage rates and other statistics.


Generation Owner
A Member that owns or leases with rights equivalent to ownership facilities for the generation of electric energy that are located within the PJM Region. Purchasing all or a portion of the output of a generation facility is not sufficient to qualify a Member as a Generation Owner.

Generator
A generator is a machine that converts different forms of energy into electrical energy. A generator or power plant might burn coal, capture the sun's energy through solar panels, convert moving air into electricity through windmills or transform the movement of water into energy as hydroelectric power. PJM has a diverse generation fuel mix that includes nuclear power, natural gas, fossil fuels and renewable generation such as wind and solar.

Generator Forced/Unplanned Outage
An immediate reduction in output or capacity or removal from service of a generating unit by reason of an Emergency or threatened Emergency, unanticipated failure, or other cause beyond the control of the owner or operator of the facility, as specified in the relevant portions of the PJM Manuals. A reduction in output or removal from service of a generating unit in response to changes in market conditions does not constitute a Generator Forced Outage.

Generator Maintenance Outage
The scheduled removal from service, in whole or in part, of a generating unit in order to perform necessary repairs on specific components of the facility approved by PJM.

Generator Planned Outage
The scheduled removal from service, in whole or in part, of a generating unit for inspection, maintenance or repair with the approval of PJM.

Generator Unavailability Subcommittee (GUS)
A PJM subcommittee, reporting to the Planning Committee, that is responsible for computing outage rates and other statistics needed by the Reliability Committee for calculating Obligations.

Gigawatt
A gigawatt is a unit of power that is equal to one billion watts or 1,000 megawatts. One gigawatt of electricity generated would power between 800,000 and one million homes.

Gigawatt-day
One GW of energy flow or capacity for one day.

Gigawatt-hour
A gigawatt-hour is a unit of measurement used to describe the amount of electricity produced or consumed. One gigawatt-hour is equal to one billion watt-hours or 1,000 megawatt hours.

Good Utility Practice
Any of the practices, methods, and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts that, in the exercise of reasonable judgment in light of the facts known at the time the decision is made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather is intended to include acceptable practices, methods, or acts generally accepted in the region.

GORP

The Generation Outage Rate Program (GORP) is a computer program maintained by the Generator Unavailability Subcommittee that uses GADS data to calculate outage rates and other statistics.


Green Book
The Rules and Procedures for Determination of Generating Capability (PJM Manual 21), maintained by the staff of the Capacity Adequacy Planning Department of PJM.

Grid
An electrical grid is an interconnected network of generation, transmission and distribution elements that delivers electricity from suppliers to consumers. See an interactive graphic that shows how the grid works.

GridWise Alliance

GridWise Alliance is a consortium of public and private stakeholders who are aligned around a shared vision. A vision of an electric system that integrates the infrastructure, processes, devices, information and market structure so that energy can be generated, distributed, and consumed more efficiently and cost effectively; thereby achieving a more resilient, secure and reliable energy system.


Gross Deficiency

The sum of all companies' individual capacity deficiency, or the shortfall of unforced capacity below unforced capacity obligation. The term is also referred to as accounted-for-deficiency.


Gross Excess
The amount by which a load-serving entity’s (LSE’s) unforced capacity exceeds its accounted-for-obligation. The term is also referred to as accounted-for-excess.

Gross Export Volume
The sum of all export transaction volume (MWh).

Gross Generation
The electrical output at the terminals of the generator, usually expressed in megawatt (MW).

Gross Import Volume
The sum of all import transaction volume (MWh).

Group Representative
An entity appointed by agreement among a group of PJM Participants to represent them on the Management Committee.

H
Heat Recovery Steam Generator (HRSG)

An air-to-steam heat exchanger installed on combined-cycle generators designed to utilize the heat in the combustion turbine exhaust to power a conventional steam-turbine generator.


Herfindahl-Hirschman Index (HHI)

HHI is calculated as the sum of the squares of the market share percentages of all firms in a market.


Hertz

Electricity system frequency is measured in Hertz (Hz). Hertz measures 60 Hz in U.S. electric markets and 50 Hz in those in Europe.


Hub

A group of nodes, also called buses, within a pre-determined region and at which PJM calculates individual Locational Marginal Prices (LMPs), for which the individual LMP values are averaged to create a single pricing reference.


Hydro Calculator
Tool used by PJM to assure hydraulic coordination of hydroelectric power plants by computing hourly reservoir elevations and plant generation from input river flows and plant discharges.

I
Identifiable Load
Identifiable Load is the load of a customer that has been identified in the weather normalized coincident peak load of a Party that was used in the determination of the Diversified Peak.

IEMO

Independent Electricity Market Operator (IEMO) (Canada’s version of an ISO), replaced by Independent Electricity System Operator (IESO).


Immature Unit
A unit having between zero and five full calendar years of operating experience for reliability calculations.

Immediate Outage
This is a forced/unplanned outage resulting in the immediate removal of the facility from service.

Impact Study
See System Impact Study.

Imports
The sum of all external transactions where PJM is the Point of Delivery. Capacity imports from external units must be certified as deliverable using firm transmission and non-recallable by any external party.

Inactive Status
The classification of a unit that is unavailable for an extended period of time because of its removal from service for economic or non-equipment-related reasons.

Inadvertent Interchange
Difference between net actual energy flow and net scheduled energy flow into or out of the Control Area.

Increment Offers
An hourly offer, expressed in MWh, to sell energy into the PJM Day-Ahead Energy Market if the Day-Ahead LMP is greater than or equal to the specified offer price. This offer must specify hourly quantity, offer price and location (Transmission Zone, Hub, Aggregate or single bus).

Incremental Auctions
Allow for an incremental procurement of resource commitments to satisfy an increase in the region’s unforced capacity obligation due to a load forecast increase or a decrease in the amount of resource commitments due to a resource cancellation, delay, derating, EFORd increase, or decrease in the nominated value of a Planned Demand Resource.

Incremental Capacity Transfer Rights
Allocated to transmission expansion projects associated with new generation interconnection that were required to meet PJM Deliverability requirements and to Merchant Transmission Expansion projects and are applicable to all such projects that have gone through the PJM interconnection process since the beginning of the PJM RTEPP in 1999. Such incremental Capacity Transfer Rights allocation is based on the incremental increase in import capability across a Locational Constraint that is caused by the transmission facility upgrade.

Incremental Cost
The component of the total cost of generator operation that varies as the output varies. It is the cost of the next increment of generation (the next megawatt), expressed in dollars per megawatt hour or in mills per kilowatt-hour.

Indirect Costs

These costs include A&G expenses such as the salary of the payroll clerk.


Inframarginal Unit
A unit that is operating, with an accepted offer that is less than the clearing price.

InSchedule

InSchedule (formerly known as eSchedules) is an Internet application used by power marketers, load serving entities and generation owners in PJM to submit their internal PJM energy schedule data. All PJM internal transactions, including load and generation interchange adjustment modeling and implicit internal Spot Market schedules are handled through the PJM InSchedule system.


Installed Capacity
Value based on the summer net dependable rating of the unit as determined in accordance with PJM’s Rules and Procedures of the Determination of Generating Capacity.

Installed Reserve Margin
Installed Reserve Margin (IRM) is used to establish the level of installed capacity resources that will provide an acceptable level of reliability consistent with the ReliabilityFirst Corporation Reliability Principles and Standards. The IRM is determined by PJM in accordance with the PJM Reserve Requirements Manual (M-20). The IRM is approved and posted by February 1 prior to its use in the Base Residual Auction (BRA) for the delivery year.

Instantaneous Reserve Check

Instantaneous Reserve Check (IRC) is a PJM survey to obtain the actual current available reserve on the system. It is an activity performed and recorded daily at morning and evening shifts by dispatch in conjunction with generator owners.


Integrated
The weighted average of instantaneous values (e.g., energy flows) over a designated, continuous period of time (usually the clock hour), reported on an hour-ending basis.

IntelliGrid Consortium

The IntelliGrid Consortium was created by EPRI to help the industry pave the way to the Intelligrid vision of the power grid of the future. The IntelliGrid Consortium will enable the development, integration and application of technologies to facilitate the transformation of the electric infrastructure to cost-effectively provide secure, high quality, reliable electricity products and services.


Interchange
Energy or capacity transferred from one electric company or power pool to another reported on an hourly basis (or on the basis of capacity periods).

Interconnection Agreement
The Operating Agreement of PJM Interconnection, L.L.C.

Interconnection Customer

The responsible party for a generator or merchant transmission project that is in the PJM Interconnection Process.


Interconnection Queue Close Date

The date on which an Interconnection Queue ends. Currently, in the PJM Open Access Transmission Tariff, the Interconnection Queue Close Dates are January 31st and July 31st.


Interconnection Service Agreement (ISA)

Interconnection Service Agreement (ISA) is an agreement among the Transmission Provider, an Interconnection Customer and an Interconnected Transmission Owner regarding interconnection.


Interface
The specific set of transmission elements between two areas or between two areas comprising one or more electrical systems.

Internal
Refers to facilities or market entities that are within the PJM RTO.

Internal Bilateral Transaction (IBT)

InSchedule Service type IBT is used to designate all internal bilateral energy transactions, including supply transactions for parties serving retail load. This service type is used by PJM Market Settlements only to adjust a participant’s interchange.


Internal Market Buyer
A Market Buyer making purchases of energy from the PJM Interchange Energy Market for consumption by end-users inside the PJM RTO.

Internal Transaction
An energy transaction between two parties in which the path of the energy remains inside the PJM RTO borders.

Interruptible Load for Reliability

Interruptible Load for Reliability (ILR) is a resource with a demonstrated capability to provide a reduction in demand or otherwise control load in accordance with PJM Standards that is certified by PJM no later than three months prior to a Delivery Year. Known as ILR Resource.


Interruptible Load for Reliability Zonal/RTO Forecast

Interruptible Load for Reliability (ILR) Zonal/RTO Forecast is the average of the Zonal ILR nominated each of the five Delivery Years prior to the BRA for the Delivery Year. If five years of ILR history is not available for a Zone that was recently integrated into PJM, an average of the Zonal incremental load subject to mandatory interruption by EDC in the two years prior to the BRA will be used as an estimated ILR for the Zone. Zonal Active Load Management(ALM) data will be used in place of Zonal ILR nominated data when Zonal ILR nominated data for the prior Delivery Years does not exist. The RTO ILR Forecast is the sum of the Zonal ILR Forecasts. A market based methodology will be considered for implementation in the future based on RPM experience. The Forecast Zonal/RTO ILR Obligation is determined by PJM in accordance with the Load Data Systems Manual (M-19) by February 1 prior to its use in the BRA for the Delivery Year.


Interruption
A reduction in non-firm transmission service due to economic reasons.

Investor Owned Utility
An entity with substantial business interest in owning and/or operating electric facilities in any two or more of the following three asset categories: generation, transmission, distribution.

Island
A portion of a power system or several power systems that is/are electrically separated from the main grid.

ISO New England
Independent System Operator New England. Party to Memorandum of Understanding.

ISO/RTO Council

Founded in 2003, the ISO/RTO Council (IRC) is an industry organization comprised of 10 Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs) in North America, including PJM. These ISOs and RTOs deliver two-thirds of the electricity consumed in North America to two-thirds of its population.


J
Jetstream

Jetstream is a data system to connect remote assets and PJM to satisfy real-time, market and other data transactions. Small generators, load response assets and other market participants can communicate with the PJM Energy Management System through the Jetstream system. The connecting network is the Internet and the data protocol is DNP3. High levels of security are provided using Transport Layer Security and a Public Key Infrastructure. The site will need to procure a certified interoperable device or software package, an OATI-signed client certificate and an Internet connection at the remote site. Each data exchange is structured to meet the project’s needs. Fully redundant data link designs are supported for high levels of reliability.


Joint and Common

MISO and PJM Interconnection together form the MISO-PJM, a partnership that intends to move toward effective implementation of a robust, non-discriminatory single energy market covering their collective regions. The goal is to create a common wholesale market with a "one-stop shop" that meets the needs of all customers and stakeholders using the electric power grid in the 22 states, the District of Columbia and the Canadian province of Manitoba. The market will be developed through an open stakeholder process and will be designed to serve residents regardless of whether they reside in states with bundled or unbundled retail rates.


Joint-Owned Unit
A generating unit owned by two or more member systems whose output is dispatched as a pool resource, with each owner receiving a share of output for billing purposes on the percentage of ownership.

K
Kilowatt
A kilowatt is a unit of power that is equal to 1,000 watts. The power output of many electric motors or heaters is typically expressed in kilowatts.

Kilowatt-hour
As a residential consumer, your monthly electricity bill shows the kilowatt-hours you used. One-thousand kilowatt-hours equals one megawatt-hour. Check out an infographic that shows how much you can power one megawatt-hour.

L
Lambda
A term commonly given to the incremental cost that results from the economic dispatch calculation. It represents the cost of the next kilowatt hour that could be produced from economical dispatchable units on the system.

Learning Management System (LMS)
The PJM LMS is a Web-based system used to track training and certification information of System Operators in PJM. This training information is used to measure compliance with the PJM System Operator Training Requirements outlined in Attachment C of the Control Center Requirements Manual (M-01).

Limited Demand Resources

Demand Resources which can be called on up to 10 times from noon to 8 p.m. on weekdays other than NERC holidays from June through September.


Load
Load is the overall usage or consumption of electricity on a power supply. Load is generally expressed in kilowatt-hours or megawatt-hours.

Load & Capacity Subcommittee (L&CS)
Performs the annual reserve requirement study and maintains the Reliability analysis documentation.

Load Aggregator (LA)
A licensed entity that may provide (sell) energy to retail customers within the service territory of a Local Distribution Company. Also known as Electric Generation Supplier (EGS).

Load Analysis Subcommittee (LAS)
A PJM subcommittee, reporting to the Planning Committee, that produces the PJM Load Forecast Report, normalized seasonal peaks, and peak allocation.

Load Curtailment
Voluntary reduction of load of preselected customers. Advanced notice of four hours (one hour in an emergency) is required.

Load Drop
A parameter used in the calculation of LSE forecast obligation determined by the Reserve Sharing Committee defined as the difference between a system’s peak load and its average weekly loads. Load drop determines how much room is available to perform maintenance due to difference between the LSE’s and pool load shapes.

Load Duration Curve
A nonchronological, graphical summary of demand levels with corresponding time durations using a curve, which plots demand magnitude (power) on one axis and percent of time that the magnitude occurs on the other axis.

Load Management
Previously known as ALM (Active Load Management. ALM was a term that PJM used prior to the implementation of RPM where end use customer load could be reduced at the request of PJM.

The ability to reduce metered load, either manually by the customer, after a request from the resource provider which holds the Load management rights or its agent (for Contractually Interruptible), or automatically in response to a communication signal from the resource provider which holds the Load management rights or its agent (for Direct Load Control).

Load Pick-up Factor
The amount of load (expressed in terms of percent of generator rating) that a generator can pick up without incurring dynamic frequency decay below a level at which generators will trip due to under frequency relaying (i.e., usually 57.5 Hz).

Load Relief

- Load reduction accomplished by voltage reduction and/or load shedding
- Curtailment of non-essential building load implemented in conjunction with voluntary customer load curtailment whenever a 5% voltage reduction is requested and added relief if required.


Load Serving Entity

A Load Serving Entity (LSE) is any entity (or the duly designated agent of such an entity), including a load aggregator or power marketer that (a) serves end-users within the PJM Control Area, and (b) is granted the authority or has an obligation pursuant to state or local law, regulation or franchise to sell electric energy to end-users located within the PJM Control Area.


Load Shedding
The systematic reduction of system demand by temporarily decreasing load in response to transmission system or area capacity shortages, system instability, or voltage control considerations.

Load Shifting
Demand-side management programs designed to encourage consumers to move their use of electricity from on-peak time to off-peak times, or daily movement of load between LSEs.

Local Area Transmission Facilities
Those transmission facilities in the PJM RTO that are not Designated Transmission Facilities.

Local Control Center (LCC)
The equipment, facilities, and personnel used by or on behalf of a Transmission Owner to communicate and coordinate with PJM on the operation of, and to operate, Bulk Power Electric Supply System facilities.

Local Control Center Dispatcher
The system operators at the LCC who direct operation of the local facilities and communicate with PJM dispatcher to coordinate operation of the Bulk Power Electric Supply system facilities.

Local Distribution Company (LDC)
A company in whose service territory Load Aggregators are providing energy to retail customers and whose distribution system is being used to transport the energy. Also known as Electric Distribution Company (EDC).

Locational Constraints
Localized capacity import capability limitations that are caused by transmission facility limitations, voltage limitations or stability limitations that are identified for a Delivery Year in the PJM Regional Transmission Expansion Planning Process (RTEPP) prior to each Base Residual Auction. Such Locational Constraints are included in the RPM to recognize and to quantify the locational value of capacity.

Locational Deliverability Area (LDA)
Sub-regions used to evaluate locational constraints. LDAs include EDC zones, sub-zones, and combination of zones.

Locational Marginal Price (LMP)
The hourly integrated market clearing marginal price for energy at the location the energy is delivered or received.

Locational Price Adder
An addition to the marginal value of unforced capacity within an LDA as necessary to reflect the price of resources required to relieve the applicable binding locational constraints.

Locational Price Algorithm
Program that calculates locational marginal prices based on actual system conditions at five-minute intervals.

Locational Reliability Charge
Fee applied to each LSE that serves load in PJM during the delivery year. Equal to the LSEs Daily Unforced Capacity Obligation multiplied by the applicable Final Zonal Capacity Price.

LOLE
Loss-of-load expectation (LOLE) defines the adequacy of capacity for the entire PJM footprint based on load exceeding available capacity, on average, during only one day in ten years (1/10).

LOLP
Loss of Load Probability

Long-Term Firm Point-to-Point Transmission Service
Firm Point-to-Point Transmission Service with a term of one year or more.

Losses
The power that is lost as dissipated heat when power flows in transmission lines and transformers.

Lost opportunity cost (LOC)
The difference in net compensation from the Energy Market between what a unit receives when providing regulation or synchronized reserve and what it would have received for providing energy output.

LSE Reserve Margin
The percent reserve for an LSE defined as (FPR).

LSE Reserve Requirement
The level of installed or purchased reserves needed to satisfy the LSE’s obligation to the PJM RTO.

M
MADRI

Established in 2004, the Mid-Atlantic Distributed Resources Initiative (MADRI) seeks to identify and remedy retail barriers to the deployment of distributed generation, demand response and energy efficiency in the Mid-Atlantic region.


Maintenance Outage
The scheduled removal from service, in whole or in part, of a generating unit in order to perform necessary repairs on specific components of the facility.

Manual Load Dump
The removal of electric load from a system by manually opening the breakers.

Margin
The difference between net capacity resources and net internal demand. Margin is usually expressed in megawatts (MW).

Marginal Equipment
Generating units that, due to their cost, may or may not run to carry system load.

Marginal Losses Cost

Marginal Losses is a price that represents the losses when power moves across the transmission system: from generators to load, some of the power is lost as a form of heat due to resistance on the wires. Marginal Losses is one of the three components of locational marginal pricing or LMP.


Market Buyer
A PJM Member that meets reasonable creditworthiness standards established by PJM and that is otherwise able to make purchases in the PJM Interchange Energy Market.

Market Operations Center (MOC)
The equipment, facilities, and personnel used by or on behalf of a Market Participant to communicate and coordinate with PJM in connection with transactions in the PJM Interchange Energy Market or the operation of the PJM RTO.

Market Participant
A Market Buyer or a Market Seller or both.

Market Seller
A PJM Member that meets reasonable creditworthiness standards established by PJM and that is otherwise able to make sales in the PJM Interchange Energy Market.

Market Settlements Reporting System (MSRS)

Market Settlements Reporting System (MSRS) is an Internet application used by PJM market participants to retrieve market settlements reports and PJM monthly billing statements.


Market Unit
The last generation unit to supply power under a merit order dispatch system.

Market User Interface
A thin client application allowing generation sellers to provide and to view generation data, including bids, unit status and market results.

Market-Clearing Price
The price that is paid by all load and paid to all suppliers.

Marketer
An entity that has the authority to take title to electrical power generated by itself or another entity and re-market that power at market-based price.

Markets Database
An Oracle database that is the central repository for generating unit offer data, Demand bids, Increment Offers, Decrement Bids and technical data at PJM. Information is entered by the PJM member companies and is used for scheduling, dispatching and accounting.

Mature Unit

A unit that has at least seven years of operating experience for reliability calculations.


Maximum Emergency Generation
The maximum net electrical power that a generator can deliver for a limited period of time without exceeding specified limits of equipment stress.

Maximum Facility Output

The maximum (not nominal) net electrical power output in megawatts, specified in the Interconnection Service Agreement, after supply of any parasitic or host facility loads, that a Generation Interconnection Customer’s Customer Facility is expected to produce, provided that the specified Maximum Facility Output shall not exceed the output of the proposed Customer Facility that Transmission Provider utilized in the System Impact Study.


Maximum Generation Emergency
An Emergency declared by PJM in which PJM anticipates requesting one or more Capacity Resources to operate at its maximum net or gross electrical power output, subject to the equipment stress limits for such Capacity Resource, in order to manage, alleviate or end the Emergency.

Maximum Generation Emergency Limit
The maximum net or gross electrical power that a generator can deliver for a limited period of time without exceeding specified limits of equipment stress.

Megawatt
A megawatt is a unit of power equaling one million watts (1 MW = 1,000,000 watts) or one thousand kilowatts (1 MW = 1,000 KW). To put it in perspective, under non-severe weather conditions, one MW could power roughly 800 to 1,000 average-sized American homes.

Megawatt-day
One MW or energy flow or capacity for one day.

Megawatt-hour (MWh)
A megawatt-hour is a unit of measurement used to describe the amount of electricity produced or consumed. It is equal to one million watt-hours or 1,000 kilowatt-hours. See what one megawatt hour can do.

Megawatt-year
One megawatt of energy flow or capacity for one calendar year.

Member

Any entity that has completed an application and satisfies the requirements of the PJM Operating Agreement to conduct business with PJM including Transmission Owners, Generating Entities, Load Serving Entities and Marketers.


Memorandum of Understanding
Agreement among Independent system organizations with responsibility to provide a reliable bulk power grid and robust marketplace to coordinate efforts. The four participating parties are PJM RTO, NY-ISO, ISO-NE and IESO.

Metered
Refers to facilities or market entities that are within the PJM RTO.

Metered Entity
A local distribution company within the PJM RTO that provides distribution and metering services to customers in its territory.

Metered Market Buyer
A market buyer making purchases of energy from the PJM Interchange Energy Market for consumption by end-users inside the PJM RTO.

Metered Value
A measured electrical quantity that may be observed through telemetering, supervisory control and data acquisition (SCADA) or other means.

Mid-American Interconnected Network
The Mid-American Interconnected Network organizations (MAIN) was formally one of the ten Regional Reliability Councils of the North American Electric Reliability Council.

MAIN's regular members included investor-owned utilities, cooperative systems, municipal power agencies, independent power producers, power marketers, and municipal systems. Together they provided electricity to 21 million people living in the 145,000 square miles the region encompasses. This region included all of Illinois and portions of Wisconsin, Iowa, Minnesota, and Michigan. The associate members served customers in several other states.

Mid-American Interconnection Network
The Mid-American Interconnected Network organizations (MAIN) was formally one of the ten Regional Reliability Councils of the North American Electric Reliability Council.

MAIN's regular members included investor-owned utilities, cooperative systems, municipal power agencies, independent power producers, power marketers, and municipal systems. Together they provided electricity to 21 million people living in the 145,000 square miles the region encompasses. This region included all of Illinois and portions of Wisconsin, Iowa, Minnesota, and Michigan. The associate members served customers in several other states.

Mid-Atlantic Area Council
A regional reliability council that was responsible for ensuring the adequacy, reliability, and security of the bulk electric supply systems in the MAAC Region. The electric Control Area operated by PJM was the MAAC region. As of January 1, 2006, MAAC no longer exists. Many MAAC members and PJM have joined the new ReliabilityFirst Corporation, which covers the geographical region of MAAC and ECAR along with Commonwealth Edison, formerly of MAIN.

Mid-Atlantic Distributed Resources Initiative

Established in 2004, the Mid-Atlantic Distributed Resources Initiative (MADRI) seeks to identify and remedy retail barriers to the deployment of distributed generation, demand response and energy efficiency in the Mid-Atlantic region.


Mileage
Mileage is the summation of movement requested by the regulation control signal a resource is following. It is calculated for the market hour and on a five minute basis for each regulation control signal (i.e. RegA and RegD).

Minimum Generation Alert

Emergency notification procedure that indicates the expected PJM generation level is within 2500 MWs of normal minimum energy limits and PJM may be initiating Minimum Generation procedures.


Minimum Generation Emergency
An emergency declared by PJM in which PJM anticipates requesting one or more generating resources to operate at or below Normal Minimum Generation, in order to manage, alleviate, or end the emergency.

Minimum Offer Price Rule (MOPR)

The Minimum Offer Price Rule prevents undue market power and market behavior that is anti-competitive and, thus, would endanger adequate power supplies and risk higher than necessary costs for consumers. The rule prohibits offers below-cost from otherwise uneconomic new natural gas-fired generation that could distort the market signal by artificially lowering the price of capacity.


MISO-PJM

MISO and PJM Interconnection together form the MISO-PJM, a partnership that intends to move toward effective implementation of a robust, non-discriminatory single energy market covering their collective regions. The goal is to create a common wholesale market with a "one-stop shop" that meets the needs of all customers and stakeholders using the electric power grid in the 22 states, the District of Columbia and the Canadian province of Manitoba. The market will be developed through an open stakeholder process and will be designed to serve residents regardless of whether they reside in states with bundled or unbundled retail rates.


Monitoring Analytics
Monitoring Analytics was established in 2008, created by spinning off the Market Monitoring Unit of PJM Interconnection. Monitoring Analytics continues to serve as the Independent Market Monitor for PJM under a long-term contract. Monitoring Analytics also has extensive experience producing reports on a variety of market topics.

Monthly Energy Reconciliation
Service provided by PJM to bill for the difference between the Retail Load Responsibility and Actual Load, based on reconciliation amounts in kWh reported by the EDCs.

Mothballed Unit
A unit placed on inactive status.

Multi-Area Operation
The scheduling and/or dispatching of a single system recognizing system constraints on the free flow of energy from a group of generators to a load area.

Must-Run Generation
Generation designated to operate at a specific level and not available for economical dispatch.

N
National Association of Regulatory Utility Commissioners
The National Association of Regulatory Utility Commissioners (NARUC), through its member agencies, regulates the activities of telecommunications, energy, and water utilities. Its members include the governmental agencies that are engaged in the regulation of utilities and carriers in the fifty States, the District of Columbia, Puerto Rice and the Virgin Islands.

A non-profit organization, NARUC's mission is to serve the public interest by improving the quality and effectiveness of public utility regulation. Under State law, NARUC's members have the obligation to ensure the establishment and maintenance of utility services as may be required by the public convenience and necessity, and to ensure that such services are provided at rates and conditions that are just, reasonable and nondiscriminatory for all consumers.

National Association of State Utility Consumer Advocates

The National Association of State Utility Consumer Advocates ( NASUCA) is an association of 44 consumer advocates in 42 states and the District of Columbia. NASUCA's members are designated by the laws of their respective jurisdictions to represent the interests of utility consumers before state and federal regulators and in the courts.


Native Load Customers
The wholesale and retail power customers of an RTO on whose behalf the RTO, by statute, franchise, regulatory requirement, or contract, undertakes an obligation to construct and operate the RTO's system to meet the reliable electric needs of such customers.

NEPOOL
New England Pool.

Nested LDAs
When an aggregate of Zones, a Zone and its sub-zones are constrained LDAs, the LDAs are referred to as “Nested”. When LDAs are nested, the Zonal CTR calculations include allocation of CTRs from RTO to aggregate of Zones as well as CTRs from aggregate of Zones to the Zone.

Net Capability
The number of megawatts of electric power that can be delivered by an electric generating unit of a System under conditions and criteria specified by the PJM Board upon consideration of the advice and recommendations of the Management Committee. Net Capabilities for all units are determined for both summer and winter operating conditions.

Net Capacity Verification Report (NETCAPVR)
A PC-based computer program that allows an LSE to provide summer and winter Net Verification Report data electronically rather than on paper forms.

Net Energy & Ancillary Services (E&AS) Offset

Used to offset the value of Cost of New Entry (CONE) to determine the net value of CONE. This value is calculated using the historical averages of Energy & Ancillary Services revenue data for a reference combustion turbine. During the first three Delivery Years (2007/08, 2008/09, 2009/10), the E & AS Offset is calculated using a historical average of the six most recent calendar years. In the subsequent Delivery Years E & AS Offset is calculated using a historical average of the three most recent calendar years.


Net Excess (capacity)

The net of gross excess and gross deficiency, therefore the total PJM capacity resources in excess of the sum of load-serving entities' obligations.


Net Exchange (capacity)
Capacity imports less exports.

Net Generation
Gross generation minus station service or unit service power requirements, usually expressed in megawatts (MW).

Net Interchange (energy)
Gross import volume less gross export volume in MWh.

Net Tie Flow (Telemetered)
Summation of the flows on all ties between PJM and the outside world. Flows into PJM RTO are positive (+); out of PJM are negative (-).

Network Customer
An entity receiving Transmission Service pursuant to the terms of the Transmission Provider's Network Integration Transmission Service.

Network Integration Transmission Service
Allows a Transmission Customer to integrate, plan, economically dispatch and regulate its network resources to serve its network load in a manner comparable to that in which the transmission provider utilizes its Transmission System to serve its Native Load Customers. Network Integration Transmission Service also may be used by the Transmission Customer to deliver non-firm energy purchases to its network load without additional charge.

Network Load
The load that a Network Customer designates for Network Integration Transmission Service. The Network Customer's Network Load includes all load served by the output of any Network Resources designated by the Network Customer.nA Network Customer may elect to designate less than its total load as Network Load but may not designate only part of the load at a discrete Point of Delivery. Where an Eligible Customer has elected not to designate a particular load at discrete points of delivery as Network Load, the Eligible Customer is responsible for making separate arrangements for any Point-to-Point Transmission Service that may be necessary for such non-designated load.

Network Operating Agreement
An executed agreement that contains the terms and conditions under which the Network Customer operates its facilities and the technical and operational matters associated with the implementation of Network Integration Transmission Service.

Network Operating Committee
A group made up of representatives from the Network Customer(s) and the Transmission Provider established to coordinate operating criteria and other technical considerations required for implementation of Network Integration Transmission Service.

Network Resource
Any designated generating resource owned or purchased by a Network Customer under the Network Integration Transmission Service Tariff. Network Resources do not include any resource or any portion that is committed for sale to third parties or otherwise cannot be called upon to meet the Network Customer's Network Load on a non-interruptible basis.

Network Service Peak Load (NSPL)
Used to determine network transmission charges and/or allocate network service FTRs or ARRs.

Network Service User
An entity using Network Transmission Service.

Network Transmission Service
Transmission Service provided pursuant to the rates, terms and conditions set forth in the Tariff.

Network Upgrades
Modifications or additions to transmission-related facilities that are integrated with and support the Transmission Provider's overall Transmission System for the general benefit of all users of such Transmission System.

New Entry Pricing
An incentive provided to a Planned Generation Resource where the size of the new entry is significant relative to the size of the LDA and there is a potential for the clearing price to drop when all offer prices including that of the new entry are capped. This allows Planned Generation Resources to recover the amount of its cost of entry-based offer for up to two additional consecutive years, under certain conditions, and to set the clearing price of all resources within that LDA for all three years.

NICApacity
A Web-based application used by PJM market participants with load responsibility in PJM, or who are participating members of the capacity markets. This application enables these participants to view load responsibility and enter capacity transaction information. It also allows participants to buy and sell capacity to meet their installed capacity obligations.

Nominated DR Value
The nominated value of a Demand Resource or ILR Resource is the value of the maximum load reduction and the process to determine this value is consistent with the process for the determination of the capacity obligation for the customer. Therefore, the maximum load reduction for each resource is adjusted to include system losses.

Non-Capacity Interchange Purchases
Amount of interchange purchases that are not capacity backed.

Non-Capacity Interchange Sales
Amount of interchange sales that are not capacity backed.

Non-Capacity Resource
A Resource that is not included as part of PJM’s capacity.

Non-economic Generation
Units producing energy at an offer price greater than the LMP.

Non-Firm Point-to-Point Transmission Service
Point-to-Point Transmission Service under the Tariff that is reserved and scheduled on an as-available basis and is subject to curtailment or interruption. Non-Firm Point-to-Point Transmission Service is available on a stand-alone basis for periods ranging from one hour to one month.

Non-Metered
Refers to facilities or market entities that are outside the PJM RTO.

Non-Metered Market Buyer
A Market Buyer making purchases of energy from the PJM Interchange Energy Market for consumption by end-users outside the PJM RTO or for load in the Control Area that is not served by Network Transmission Service.

Non-PJM-Designated Transmission Facilities
The transmission facilities within the PJM RTO that are not designated for PJM operation. These are also referred to as Local Non-designated Transmission Facilities.

Non-Recallable Available Transfer Capability (NATC)

The Total Transmission Capability less the Transmission Reliability Margin, less non-recallable reserved transmission service (including the Capacity Benefit Margin).


Non-retail Behind the Meter Generation
Behind the Meter Generation that is used by municipal electric systems, electric cooperatives, and electric distribution companies to serve load.

Non-unit Specific Capacity Transactions
Transactions in eRPM between a buyer and seller that facilitate financial settlement, only, between the buyer and seller using the eRPM system and PJM settlement process. Non-Unit Specific Capacity Transactions will not change the resource position or load obligation of an entity, and are not eligible to be offered in an RPM auction or used to the meet the region’s unforced capacity obligation. Non-Unit Specific Capacity Transactions can be settled at a Zone or Capacity Hub as defined by PJM. Non-Unit Specific Capacity Transactions were formerly known as Financial Capacity Transactions.

Non-Utility Generator (NUG)

- All co-generators, qualifying facilities, and all independent power producers not owned and operated by an electric utility.
- A facility that produces electric power and then sells it to an electric utility, usually under a long-term contract. NUGs may also sell thermal energy and electricity to nearby industrial customers.


Non-Zone Load
The load that is located outside of the PJM Region served by a PJM Load Serving Entity using PJM internal resources. Non-Zone Load is included in the load of the Zone from which the load is served.

Normal Maximum Generation
The highest output level of a generating resource under normal operating conditions. See economic maximum.

Normal Maximum Generation Limit
The highest output level of a generating resource under normal operating conditions.

Normal Minimum Generation
The lowest output level of a generating resource under normal operating conditions. See economic minimum.

Normal Minimum Generation Limit
The lowest output level of a generating resource under normal operating conditions.

Normal Response Rate
The rate of load change that a generating unit can achieve for normal loading purposes expressed in megawatts per minute (MW/Min).

Normal Transfer Capability
The amount of power transfer allowed between areas or within an area when operating to meet PJM normal criteria contingencies.

North American Electric Reliability Corporation

The North American Electric Reliability Corporation (NERC) operates as an electric reliability organization to improve the reliability and security of the bulk power system in North America. To achieve that, NERC develops and enforces reliability standards; monitors the bulk power system; assesses future adequacy; audits owners, operators, and users for preparedness; and educates and trains industry personnel. As the Electric Reliability Organization, NERC is subject to audit by the U.S. Federal Energy Regulatory Commission and governmental authorities in Canada.


North American Energy Standards Board

The North American Energy Standards Board (NAESB) serves as an industry forum for the development and promotion of standards which will lead to a seamless marketplace for wholesale and retail natural gas and electricity, as recognized by its customers, business community, participants and regulatory entities.


Nuclear Plant Generator Operator (NPGO)

Any Generator Operator or Generator Owner that is a Nuclear Plant Licensee responsible for operation of a nuclear facility licensed to produce commercial power.


Nuclear Plant Interface Requirements (NPIRs)

The requirements based on NPLRs and Bulk Electric System requirements that have been mutually agreed to by the Nuclear Plant Generator Operator and the applicable Transmission Entities.


Nuclear Plant Licensing Requirements (NPLRs)

Requirements included in the design basis of the nuclear plant and statutorily mandated for the operation of the plant, including nuclear power plant licensing requirements for:

1) Off-site power supply to enable safe shutdown of the plant during an electric system or plant event; and

2) Avoiding preventable challenges to nuclear safety as a result of an electric system disturbance, transient or condition.


Nuclear Plant Off-site Power Supply (Off-site Power)

The electric power supply provided from the electric system to the nuclear power plant distribution system as required per the nuclear power plant license


Nuclear Regulatory Commission
The U.S. Nuclear Regulatory Commission (NRC) is an independent agency established by the Energy Reorganization Act of 1974 to regulate civilian use of nuclear materials. NRC is headed by a five-member Commission.

NRC's primary mission is to protect the public health and safety, and the environment from the effects of radiation from nuclear reactors, materials and waste facilities. We also regulate these nuclear materials and facilities to promote the common defense and security.

NYISO
New York Independent System Operator. Party to Memorandum of Understanding.

O
Obligation Peak Load
The summation of the weather normalized coincident summer peaks for the previous summer of the end-users for which the Party was responsible on that billing day.

Off Peak
Off-peak is a period of time when consumers typically use less electricity - normally on weekends, holidays or times of the day when many businesses are not operating. PJM considers New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day off-peak; and weekend hours and weekdays from midnight to 8 a.m.

Off-Cost
A given Load Serving Entity’s (LSE’s) generation as being dictated by PJM RTO security considerations.

Offer Data
The scheduling, operations planning, dispatch, new resource, and other data and information necessary to schedule and dispatch generation resources for the provision of energy and other services and the maintenance of the reliability and security of the Transmission System in the PJM RTO, and specified for submission to the PJM Interchange Energy Market.

Office of Interconnection

The employees and agents of PJM Interconnection, L.L.C., subject to the supervision and oversight of the PJM Board of Managers.


Office Working Day
Any day from Monday to Friday, excluding PJM designated holidays.

On-Peak
On-peak is a period of time when consumers typically use more electricity - normally on weekdays, when many businesses are operating. PJM considers weekdays from 8 a.m. to midnight on-peak, except for the following holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

Open Access Same-Time Information System

The Open Access Same-Time Information System (OASIS) is an Internet application that was established by and is operated by PJM in accordance with the Federal Energy Regulatory Commission (FERC) standards and requirements. It is used by transmission providers to exchange transmission service and ancillary service information with transmission customers in the PJM control area. The OASIS requirements and standard of conduct were initially defined in FERC Order 889. These requirements may be modified by subsequent FERC orders.


Open Access Same-Time Information System (OASIS)

The Open Access Same-Time Information System (OASIS) provides information by electronic means about available transmission capability for point-to-point service and a process for requesting transmission service on a non-discriminatory basis. OASIS enables transmission providers and transmission customers to communicate requests and responses to buy and sell available transmission capacity offered under the PJM Open Access Transmission Tariff.


Open Access Transmission Tariff
The PJM Open Access Transmission Tariff on file with the Federal Energy Regulatory Commission, as it may be amended from time to time.

Operating Agreement

The agreement dated as of March 28, 1997, as amended from time to time, that establishes the planning and operation of the PJM Regional Transmission Organization (RTO), and provides for PJM.


Operating Availability Factor
The portion of time a unit is available to operate.

Operating Capability
The maximum load carrying ability of generating equipment or other electrical apparatus under specified conditions for a given time interval.

Operating Capacity
An estimated amount of capability scheduled in advance to carry the estimated peak load of PJM and to provide reserve as required.

Operating Day
The daily 24-hour period beginning at midnight for which transactions on the PJM Interchange Energy Market are scheduled.

Operating Margin
Incremental adjustments, measured in MW, required in the PJM RTO operations in order to accommodate in a first-come contingency basis, an operating contingency in the PJM RTO resulting from operation in an interconnected Control Area.

Operating Reserve
The amounts of generating capacity scheduled to be available for specified periods of an operating day to ensure the security of the PJM RTO.

Operating Transmission Limit
The maximum value of the most critical system operating parameter(s) which meets: (a) pre-contingency criteria as determined by equipment loading capability and acceptable voltage conditions, (b) transient performance criteria or (c) post-contigency loading and voltage criteria.

Organization of PJM States, Inc.

OPSI maintains an organization of statutory regulatory agencies in the 13 states and the District of Columbia within which PJM Interconnection operates. OPSI Member Regulatory Agencies’ activities include, but are not limited to, coordinating activities such as data collection, issues analyses, and policy formulation related to PJM, its operations, its market monitor, and matters related to the Federal Energy Regulatory Commission, as well as their individual roles as statutory regulators within their respective state boundaries.


Other Supplier
An entity other than a Generation Owner selling electric energy in the PJM RTO.

Outage
An outage has multiple meanings in PJM. First, an outage is a short- or long-term loss of electric power to an area. Planned intervals of time when either transmission lines or power plants are temporarily brought out of service for maintenance are also known as outages.

Outage Transfer Distribution Factor (OTDF)
The electric power transfer distribution factor (PTDF) with a specific system facility removed from service (outage). The OTDF applies only for the post-contingency configuration of the systems under study.

P
Parameter Limited Schedules

Schedules containing pre-determined limits that could be imposed on the parameters in generation offers when certain operational circumstances exist. Cost based offers are parameter limited. Price based offers can be parameter limited or not.


Partial Requirements Service
Wholesale service to supply a specified portion, but not all, of the power needs of a LSE to serve end-users within the PJM Region that are not satisfied by its own generating facilities.

Peak Demand
Peak demand is the highest electric requirement occurring in a given period of time. In PJM there are hourly, daily, monthly, seasonal and yearly peaks.

Peak Load Contributions (PLCs)
A customer’s contribution to a zone’s normalized summer peak load, as estimated by the zone’s Electric Distribution Company. Used in determining a Load Serving Entity’s obligation Peak Load.

Peak Load Residual
The Peak Load for a zone—sum of all Load Serving Entities’ PLC in that zone equals peak load residual. The zone owner is responsible for meeting the residual peak load’s obligation.

Peak Period Capacity Available (PCAP)
Total Unit ICAP Commitment Amount of the generating unit times (1.0 – EFORp).

Peak Period Maintenance Deficiency
A party shall be deficient and shall pay the charge as set forth in Schedule 11 of the Reliability Assurance Agreement (RAA) if its Unforced Capacity is less than the sum of its Peak Season Maintenance Obligation and its Accounted-for Obligation (as determined pursuant to Schedule 7 of the RAA); provided, however that a Party shall be considered to be deficient only to the extent of any megawatts of deficiency in excess of the number of megawatts for which said Party already has paid a deficiency charge related to Schedule 7 of the RAA. (RAA Schedule 8-E)

Peak Period Maintenance Excess
For each day during the Peak Season, the Peak Season Maintenance Obligation of a Party shall be the amount, in megawatts, which shall be based on the Unforced Capacity of the Unit, of that Party's Peak Season Maintenance at the time of the Control Area daily peak, excluding outages for maintenance when released by the Office of the Interconnection for a specified period and other outages as approved by the Reliability Committee from time to time.

Peak Period Maintenance Season
The time period between the 24th through the 36th Wednesdays of the calendar year, with each week beginning on a Monday.

Peak Season
Peak Season is defined to be those weeks containing the 24th through 36th Wednesdays of the calendar year. Each such week begins on a Monday and ends on the following Sunday, except for the week containing the 36th Wednesday, which ends on the following Friday.

Peak Season Maintenance
Planned outages and maintenance outages during the Peak Season.

Peak-Period Equivalent Forced Outage Rate Peak (EFORp)
A measure of the probability that a generating unit will not be available due to forced outages or forced deratings when there is a demand on the unit to generate during seasonal peak periods. Currently there are two sets of seasonal peak periods. The Summer peak period is defined as June through August non-holiday weekdays from 1400 to 1900. The Winter peak period is defined as January through February non-holiday weekdays from 0700 to 0900 and 1800 to 2000.

Percentage Internal Resources Required
For purposes of an FRR Capacity Plan, the percentage of the LDA Reliability Requirement for an LDA that must be satisfied with physically Capacity Resources located in that LDA.

Performance-Based Regulation (PBR)

This PJM market structure aligns compensation with the actual performance and benefits each resource provides to the power system. Resources are provided compensation for their accuracy, speed and precision of response in providing regulation service to the system.


Period Hours
The total clock time in the period of concern.

Permanent Fault
A fault that prevents the affected device from being returned to service until physical actions are taken to effect repairs or to remove the cause of the fault.

Phase Angle Regulator (PAR)
Allows Dispatchers to change the flow of megawatts over a transmission line by changing the impedance of the transmission facility.

Phasor Measurement Unit

A phasor measurement unit (PMU) measures the electrical waves on an electricity grid to determine the health of the system. In power engineering, these are also commonly referred to as synchrophasors and are considered one of the most important measuring devices in the future of power systems.


PJM
PJM shall mean the PJM Board and the Office of the Interconnection. (RAA Section 1.39)

PJM Control Area-Scheduled Resource
This is a generating resource that the seller has turned over to PJM for scheduling and control.

PJM Control Center
The equipment, facilities, and personnel used by PJM to coordinate and direct the operation of the PJM RTO and to administer the PJM Interchange Energy Market, including facilities and equipment used to communicate and coordinate with the Market Participants in connection with transactions in the PJM Interchange Energy Market or the operation of the PJM RTO.

PJM Energy Market
The regional competitive market administered by PJM for the purchase and sale of spot electric energy at wholesale in interstate commerce and related services established in the PJM Operating Agreement.

PJM Interchange
The amount by which an Internal Market Buyer’s hourly Equivalent Load is exceeded by the sum of the hourly outputs of the Internal Market Buyer’s operating generating resources; or
The hourly scheduled deliveries of Spot Market Energy by an External Market Seller from an External Resource; or
The hourly net metered output of any other Market Seller.

PJM Interchange Energy Market
The regional competitive market administered by PJM for the purchase and sale of spot electric energy at wholesale in interstate commerce and related services established in the PJM Operating Agreement.

PJM Interchange Export
The amount by which an Internal Market Buyer’s hourly Equivalent Load is exceeded by the sum of the hourly outputs of the Internal Market Buyer’s operating generating resources; or
The hourly scheduled deliveries of Spot Market Energy by a Market Seller from an External Resource; or
The hourly net metered output of any other Market Seller.

PJM Interchange Import
The amount by which an Internal Market Buyer’s hourly Equivalent Load exceeds the sum of the hourly outputs of the Internal Market Buyer’s operating generating resources; or
The hourly scheduled deliveries of Spot Market Energy to an External Market Buyer.

PJM Load Ordered Time Series (PLOTS)
A magnitude ordered load model consisting of a 52-week load distribution (mean and standard deviation).

PJM Manuals
The instructions, rules, procedures and guidelines established by PJM for the operation, planning, and accounting requirements of the PJM RTO and PJM Interchange Energy Market.

PJM Markets Facilities
Those facilities above 100kV which are both monitored in the PJM EMS and included in the LMP calculations for congestion management.

PJM OASIS Account Administrator
This is the person to contact if you have questions or need information about PJM OASIS. Directions to contact the administrator are on the PJM OASIS Web page.

PJM Region
PJM Region represents the aggregate of the PJM Mid-Atlantic Control Zone and the PJM West Region.

PJM Reliability Facilities
Those facilities above 100kV which are monitored as part of the NERC BES set of facilities but are not included in the LMP calculations for congestion management.

PJM RTO Scheduled Resource
This is a generating resource that the seller has turned over to PJM for scheduling and control.

PJM Settlement, Inc.

PJM Settlement, Inc., a subsidiary of PJM Interconnection, LLC, provides member settlement transaction activities for those participating in PJM’s markets. The subsidiary acts as a counterparty to members’ pool transactions and provides a clearly defined legal standing to collect unpaid balances of a member if the member should declare bankruptcy. All current PJM members are also members of PJM Settlement, Inc. PJM Settlement, Inc. is a Pennsylvania nonprofit corporation that has a service agreement with PJM to provide and retain services, including PJM staff support.


PJM Tariff
PJM Open Access Transmission Tariff providing Transmission Service within the PJM RTO, including schedules and exhibits.

PJM-EIS

PJM Environmental Information Services, Inc. (PJM-EIS), a wholly-owned subsidiary of PJM Technologies, Inc., was formed to provide environmental and emissions attributes reporting and tracking services to its subscribers in support of renewable portfolio standards and other information disclosure requirements that may be implemented by government agencies. PJM-EIS owns and administers the Generation Attribute Tracking System (GATS).


Planned Demand Resource
A Demand Resource that does not currently have the capability to provide a reduction in demand or to otherwise control load, but that is scheduled to be capable of providing a reduction or control on or before the start of the Delivery Year for which the resource is to be committed.

Planned Generation Capacity Resource
A Generation Capacity Resource participating in the generation interconnection process for which Interconnection Service is scheduled to commence on or before the first day of the Delivery Year for which the resource is to be committed. A Facilities Study Agreement (FSA) must be executed prior to the BRA for the corresponding Delivery Year and an Interconnection Service Agreement (ISA) must be executed prior to any Incremental Auctions for the corresponding Delivery Year.

Planned Outage
The scheduled removal from service, in whole or in part, of a generating unit for inspection, maintenance or repair with approval of PJM.

Planned Transmission Outage
Any transmission outage scheduled for the performance of maintenance or repairs or the implementation of a system enhancement which is planned in advance for a pre-determined duration and which meets the notification requirements for such outages as specified by PJM.

Planned Transmission Outage Schedule
The schedule of Planned Transmission Outages, including extended outages and scheduled retirements.

Planning Period
The 12 months beginning June 1 and extending through May 31 of the following year. As changing conditions may require, the Markets and Reliability Committee may recommend other Planning Periods to the PJM Board of Managers.

Planning Period Peak
For a summer peaking system, the Planning Period Peak and summer peak is equal. For a winter peaking system, the Planning Period Peak is equal to the average of the reduced winter peak for the Planning Period and the greater of its summer peak for the Planning Period or its reduced winter peak for the Planning Period immediately preceding.

Planning Period Peak Diversity Entitlement
For a winter peaking system, this entitlement is equal to one half the difference between it planning period peak and its summer peak. For a summer peaking system, the entitlement is equal to the ratio of the difference between the summer peak load and the reduced winter peak load to the sum of all such differences for all summer peaking systems multiplied by the sum of the planning period peak diversity entitlements of the winter peaking systems.

Planning Year
Annual period from June 1 to May 31 (also may be referred to as Planning Period).

Plug-In Hybrid Electric Vehicle

A plug-in hybrid electric vehicle (PHEV), plug-in hybrid vehicle (PHV), or plug-in hybrid is a hybrid vehicle which utilizes rechargeable batteries, or another energy storage device, that can be restored to full charge by connecting a plug to an external electric power source (usually a normal electric wall socket).


Pnodes

Pricing Node or Pricing Location


Point(s) of Delivery (POD)
Point(s) on the Transmission Providers Transmission System where capacity and energy transmitted by the Transmission Provider is made available to the Receiving Party. The Point(s) of Delivery are specified in the Service Agreement for Long-Term Point-to-Point Transmission Service.

Point(s) of Receipt (POR)
Point(s) of interconnection on the Transmission Providers transmission system where capacity and energy are made available to the Transmission Provider by the Delivering Party. The Point(s) of Receipt are specified in the Service Agreement for Long-Term Firm Point-to-Point Transmission Service.

Point-to-Point Transmission Service
The reservation and transmission of capacity and energy on either a firm or non-firm basis from the Point(s) of Receipt to the Point(s) of Delivery.

Pool-Scheduled Resource
This is a generating resource that the seller has turned over to PJM for scheduling and control.

Pool-Wide Average EFORd
Average of the forced outage rates, weighted for unit capability and expected time in service, attributable to all units that are planned to be in service during the delivery year. Determined by PJM and is approved and posted by February 1 prior to its use in the Base Residual Auction for the Delivery Year. The OMC events are not considered in the EFORd values used to calculate Pool-Wide Average EFORd (this change as a part of RAA was filed with FERC on June 19).

Posted Path
Any control area to control area interconnection; any path for which service is denied, curtailed or interrupted for more than 24 hours in the past 12 months; and any path for which a customer requests to have ATC or TTC posted (defined in FERC Order 889).

Postponability Code 9 Outage

A routine, periodic outage (e.g., deslagging, condenser cleaning, etc.) that both starts and ends during a single valley load period (i.e., the time period from 22:00:01 to 08:00:00, inclusive).


Postponed Outage
This is a Forced/Unplanned Outage that may be postponed beyond 6 hours but no later than the end of the next weekend period.

Power
Power is the rate at which energy is transferred, used or transformed. It is measured in watts.

Power Meter

Power Meter (formerly known as eMTR) calculates a market participant's actual interchange energy amounts to be used for real-time energy market settlements. Transmission and generation owners submit hourly tie and generator values to be verified and corrected on a next-hour basis.


Power Purchaser
The entity that is purchasing the capacity and energy to be transmitted under the Tariff.

Power Swing
An unscheduled transient change in the power flows on a system, usually of an oscillatory nature.

Power System Simulator Equation (PSSE)
PSSE is an integrated set of computer programs that handles the following power system analysis calculation: power flow, balanced and unbalanced fault analysis, network equivalent construction and dynamic simulation.

Power Transfer Distribution Factor
A measure of the responsiveness or change in electric loading on system facilities due to a change in electric power transfer from one area to another, expressed in percent (up to 100%) of the change in power transfer. The PTDF applies only for the pre-contingency configurations of the system under study.

President
The President of the PJM Interconnection, L.L.C., appointed by the PJM Board of Managers, who directs and manages all of the staff and operations of PJM and reports to the PJM Board of Managers.

Price Responsive Demand

Price Responsive Demand (PRD) is demand reduced in response to rising wholesale prices. The response follows a predictable curve that represents price versus quantity demanded.


Price-sensitive Bid
Purchases of a defined MW level of energy only up to a specified LMP. Above that LMP, the load bid is zero.

Primary Operating Interfaces
Primary operating interfaces are typically defined by a cross section of transmission paths or single facilities which affect a wide geographic area. These interfaces are modeled as constraints whose operating limits are respected in performing dispatch operations.

Primary Reserve
Reserve capability that can be converted fully into energy within 10 minutes from the request of PJM. Current approved value for this objective is 1,700 MW.

Production Cost
The total cost of producing energy in dollars per hour from a generating unit or group of generating units. It includes the cost of fuel, operations, and maintenance of the unit(s).

Protective Relay
A device whose function is to detect defective lines, apparatus, or other power system conditions of an abnormal or dangerous nature and to initiate appropriate control circuit action.
NOTE: A protective relay may be classified according to its input quantities, operating principles, or performance characteristics.

Public Power Entity
Any agency, authority, or instrumentality of a state or of a political subdivision of a state, or any corporation wholly owned by any one or more of the above, that is engaged in the generation, transmission, and/or distribution of electric energy.

Q
Qualifying Transmission Upgrade (QTU)
A proposed enhancement or addition to the Transmission System that will increase the Capacity Emergency Transfer Limit (CETL) into an LDA by a megawatt quantity certified by PJM. A Qualified Transmission Upgrade is scheduled to be in service on or before the commencement of the first Delivery Year for which such upgrade is the subject of a Sell Offer in the Base Residual Auction. Prior to the conduct of the Base Residual Auction for such Delivery Year, a Facilities Study Agreement (FSA) must be executed.

Queue Box
Each queue box represents a certain period of time that PJM receives a generation request or the first feasibility agreement.

Queue Date

The date on which PJM receives a valid Interconnection Request from an Interconnection Customer.


Quick-Start Reserve
Reserve capability that can be converted fully into energy within 10 minutes of PJM’s request and is provided by equipment not electrically synchronized to the power system.

Quorum
The quorum requirements vary among the four agreements that comprise and define PJM. Typically a quorum requirement can be met by participants participating in person, via teleconference, or by designating an alternate.

R
RAA
Reliability Assurance Agreement. One of four agreements that define authorities, responsibilities and obligations of participants and PJM. This agreement defines the role of the Markets and Reliability Committee, amended from time to time, establishing obligation standards and procedures for maintaining reliable operation of the PJM RTO. The other principal PJM agreements are the Operating Agreement, the PJM Open Access Transmission Tariff, and the Transmission Owners Agreement.

Radio and TV Appeal Load Curtailment