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

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

The amount by which an LSE’s unforced capacity exceeds its 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.

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

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.

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

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.

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.

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.

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.

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

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

Combination of buses or bus prices.

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

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.

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

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.

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.

The vector sum of REACTIVE and REAL power components.

Units are Volt-Amperes.

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

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

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.

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.

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.

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

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

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.

This is a reserve sharing agreement between companies.

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.

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

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

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.

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.

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

Energy that is generated and financially settled during real time.

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, nonfirm scheduled transactions, and major facility (generation and transmission) outage schedules during the period.

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.

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.

The quantity of generation that exists continuously during the period.

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.

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.

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.

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.

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 actors are posted with the Base Residual Auction results.

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.

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.

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.

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

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

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

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 enables Transmission Providers and Transmission Owers 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.

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.

The disconnection of the source of electricity from all electrical loads in a certain geographical area brought on by insufficient generation, an emergency-forced outage, or other fault in the generation/transmission, distribution system serving the area.

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

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.

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.

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.

An interconnection point.

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.

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

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 represents the need to have adequate generating resources to ensure that the demand for electricity can be met at all times. In PJM’s case, that means that a utility or other electricity supplier is required to have the resources to meet its customers’ demand plus a reserve amount. Suppliers can meet that requirement with generating capacity they own, with capacity purchased from others under contract, or with capacity obtained through PJM’s capacity market auctions.

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.

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.

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.

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.

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) 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.

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.

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.

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.

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.

See Accounted-for-Obligation.

Capacity Position = Capacity Resources – Capacity Obligation

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.

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.

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

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.

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.

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.

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.

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

A switching device capable of making, carrying and breaking currents under normal circuit conditions and also making, carrying for a specified time and breaking currents under specified abnormal conditions such as those of a short circuit.

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

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.

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.

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.

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

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

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.

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)

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.

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

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.

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

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

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

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).

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.

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.

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

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.

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

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.

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

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 which structural market power is found to exist.

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

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.

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.

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.

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

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 (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

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.

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

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.

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

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.

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.

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.

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

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

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).

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.

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

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

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.

The rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts or megawatts, at a given instant or averaged over any designated interval of time. Demand should not be confused with Load.

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).

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).

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.

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.

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.

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.

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

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.

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

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 affect on the PJM RTO’s interconnected operation with other Control Areas.

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.

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

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

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.

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

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) 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.

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

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

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

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

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).

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.

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

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

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).

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.

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

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

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

The Dispatcher Applications and Reporting Tool (eDART) is an Internet-based tool that allows communication of system information between PJM and member company dispatchers. eDart provides a customizable, real-time visual snapshot of generation and Transmission operational data. It is a control room tool to manage on-line generation and transmission outages.

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.

Enhanced Energy Scheduler program records and manages the interchange of bulk power between the PJM RTO and other utilities, marketers, and brokers. PJM personnel use EES to process daily non-firm( both those electing to curtail due to congestion and those electing to pay congestion charges ) and firm Bilateral Transaction schedules that are submitted by PJM Members.

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).

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

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

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.

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.

A computerized information system developed as an Internet application that is the Market Participant interface to the monthly FTR Auction. This application also facilitates trading of Fixed Transmission Rights on a bilateral basis (secondary market trading).

Internet application for submission of GADS (Generator Availability Data Systems) data by generation owners and production of reports using the integral GORP (Generating Outage Rate Program).

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

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.

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

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.

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.

A corporation, person, agency, authority, or other legal entity or instrumentality that owns or operates facilities for the generation, transmission, distribution, or sale of electric energy primarily for use by the public and is defined as a utility under the statutes and rules by which it is regulated. Types of electric utilities include investor owned, cooperatively owned, and government owned (federal agency, crown corporation, state, provincials, municipals, and public power districts).

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).

• 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.

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.

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

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).

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

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

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).

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.

A PJM software application (one of the eTools) that 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.

PJM Member that is a retail end-user of electricity within the PJM RTO.

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.

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.

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

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 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.

Megawatt loading of a machine.

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

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

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

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

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.

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.

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

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.

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

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.

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

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.

Several e-Tool applications (Oasis, EES, eCapacity, InSchedule, eData, eMTR).

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

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 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.

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.

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

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

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

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

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.

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.

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.

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.

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.

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.

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

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

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

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

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.

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.

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.

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.

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.

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

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.

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.

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

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.

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

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.

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.

An outage results in the immediate de-ration or unavailability of a generating unit due to a failure. (See Generator Forced/Unplanned 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 (MW) is a Party’s obligation established pursuant to Section 7.1(d) of the Reliability Assurance Agreement.

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

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

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

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.

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

A Frequently Mitigated Unit (FMU) is 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.

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

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.

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.

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.

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.

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.

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

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.

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

A computer program and database used for entering, storing, and reporting generating unit data concerning outages and unit performance.

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.

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

The process of producing electrical energy from other forms of energy; also, the amount of electric energy produced, usually expressed in kilowatt-hours (kWh) or megawatt hours (MWh).

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.

Schedules of MW offered and the corresponding offer price.

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.

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.

A machine that converts mechanical energy into electrical energy.

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.

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.

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

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.

A gigawatt (GW) is a unit of power equal to 1,000 megawatts.

One GW of energy flow or capacity for one day.

One gigawatt-hour (GWh) is a gigawatt produced or consumed for one hour.

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.

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.

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

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.

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.

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.

The sum of all export transaction volume (MWh).

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

The sum of all import transaction volume (MWh).

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

Heat Recovery Steam Generator (HRSG) is 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) is calculated as the sum of the squares of the market share percentages of all firms in a market.

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

Herfindahl-Hirschman Index (HHI) is calculated as the sum of the squares of the market share percentages of all firms in a market.

Heat Recovery Steam Generator (HRSG) is 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.

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.

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.

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.

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

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

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

See System Impact Study.

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.

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.

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

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).

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.

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.

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.

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

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

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.

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 (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 (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.

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.

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.

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).

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

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

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

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

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

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.

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

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

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 (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 sued 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.

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

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.

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

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

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.

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.

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.

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.

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).

Performs the annual reserve requirement study and maintains the Reliability analysis documentation.

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).

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

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

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.

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.

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).

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 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.

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.

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.

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.

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

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.

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.

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).

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.

Sub-regions used to evaluate locational constraints. LDAs include EDC zones, sub-zones, and combination of zones.

The hourly integrated market clearing marginal price for energy at the location the energy is delivered or received.

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.

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

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.

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).

Loss of Load Probability

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

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

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.

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

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

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.

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.

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

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

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

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.

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.

A Market Buyer or a Market Seller or both.

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.

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

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

The price that is paid by all load and paid to all suppliers.

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.

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.

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

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

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.

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.

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.

A megawatt equals 1,000 kilowatts.

One MW or energy flow or capacity for one day.

One MWh is a megawatt produced or consumed for one hour.

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

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.

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.

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

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

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

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

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.

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.

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.

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 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).

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.

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.

The Minimum Offer Price Rule prevents undue market power and market behavior that is anticompetitive 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 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 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.

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.

A unit placed on inactive status.

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.

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

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.

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.

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.

New England Pool

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.

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.

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

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.

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

Capacity imports less exports.

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

Gross import volume less gross export volume in MWh.

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

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

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.

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.

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.

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.

Used to determine network transmission charges and/or allocate network service FTRs or ARRs.

An entity using Network Transmission Service.

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

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.

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.

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.

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.

Amount of interchange purchases that are not capacity backed.

Amount of interchange sales that are not capacity backed.

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

Units producing energy at an offer price greater than the LMP.

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.

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

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.

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.

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

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

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.

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.

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.

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

The highest output level of a generating resource under normal operating conditions.

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

The lowest output level of a generating resource under normal operating conditions.

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

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

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.

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.

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

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.

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.

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

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.

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

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.

For the PJM Energy Market, off-peak periods are all NERC holidays (i.e., New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day) and weekend hours plus weekdays from the hour ending at midnight until the hour ending at 0700.

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

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.

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

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

For the PJM Energy Market, on-peak periods are weekdays, except NERC holidays (i.e., New Year’s Day, Memorial Day, Independence day, Labor Day, Thanksgiving Day, Christmas Day) from the hour ending at 0800 until the hour ending at 2300.

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.

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

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.

The portion of time a unit is available to operate.

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

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

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

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.

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

The maximum value of the most critical system operating parameter(s) which meets: (a) precontingency criteria as determined by equipment loading capability and acceptable voltage conditions, (b) transient performance criteria or (c) postcontigency loading and voltage criteria.

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.

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

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.

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.

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.

The highest electric requirement occurring in a given period (e.g., an hour, a day, month, season or year. For an electric system, it is equal to the sum of the metered net outputs of all generators within a system and the metered line flows into the system, less the metered line flows out of the system.

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.

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.

Total Unit ICAP Commitment Amount of the generating unit times (1.0 – EFORp).

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)

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.

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

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.

Planned outages and maintenance outages during the Peak Season.

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 nonholiday weekdays from 0700 to 0900 and 1800 to 2000.

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.

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.

The total clock time in the period of concern.

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.

Allows Dispatchers to change the flow of megawatts over a transmission line by changing the impedance of the transmission facility.

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

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

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.

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.

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.

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.

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.

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.

A magnitude ordered load model consisting of a 52-week load distribution (mean and standard deviation).

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.

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

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

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.

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

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

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).

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.

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.

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

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.

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

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.

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.

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.

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

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).

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).

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).

Pricing Node or Pricing Location

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 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.

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.

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

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).

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).

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 to 08:00:00, inclusive).

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

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

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

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.

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.

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

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 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.

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.

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).

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.

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.

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.

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

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

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.

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.

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.

A request for public energy conservation made via radio and TV systems. Notify adjacent pools due to area overlap. (Requires PJM System Operating subcommittee approval.)

The rate, expressed in megawatts per minute, at which a generating unit can change output level.

A method of generation control that moves the unit to a designated end point (above or below current actual) at the unit rate of response.

The sustained rate of change of generator output, in megawatts per minute.

The operational limits of electric system equipment.

The maximum power flow possible into or through some particular part of the system while maintaining the bulk power supply system bus voltage with the operating criteria.

The product of voltage and the out-of-phase component of alternating current. Reactive power, usually measured in VARs, is produced by capacitors and overexcited generators and absorbed by reactors and other inductive devices.

The primary purpose of this device is to introduce inductance into a circuit. Shunt reactors are normally used to absorb reactive power (VARs) for voltage control. Series reactors are normally used to increase the effective reactance on a circuit to limit fault current.

This is the energy of the work producing part of Apparent Power, measured in watts.

The instantaneous operations of a power system as opposed to those operations that are simulated.

The right of a transmission provider to interrupt all or part of a transmission service for any reason, including economic, that is consistent with Federal Energy Regulatory Commission policy and the transmission provider’s transmission service tariffs or contract provisions.

The entity receiving the capacity and energy transmitted by the Transmission Provider to Point(s) of Delivery.

The cost or bid price that exceeds the Unconstrained Market Clearing Price, multiplied by the amount of additional generation required for control of constraints on the Transmission System.

The winter peak reduced by the excess of its total zone capacity capability under winter operating conditions over its total capacity capability under summer operating conditions. The total capability is defined as net capabilities of its Capacity Resources planned in service as of December 1st.

The regulation signal point that is used for traditional regulating resources with physical characteristics that limit ramp rate. This regulation signal takes into account the RTO frequency and tie error.

The dynamic regulation signal is used for regulating resources with no physical characteristics that limit ramp rate. This signal is derived from the same algorithms as the RegA, however, the main difference is the use of a dynamic time constants that allow for faster cycling.

PJM’s comprehensive annual process that examines the three interrelated components of electric power system reliability: load, generation, and transmission. The RTEP Process employs a range of planning study tools and methodologies to analyze and assess each component to ensure that reliability remains firm. The RTEP process is designed to meet established reliability criteria, keep markets robust and competitive, and ensure stable operations.

The process by which PJM recommends specific transmission facility enhancements and expansions based on reliability and economic criteria.

A voluntary organization of transmission owners, transmission users and other entities approved by the Commission to efficiently coordinate transmission planning (and expansion), operation and use on a regional (and interregional) basis.

Each entity (a) that owns, leases or otherwise has a possessory interest in facilities used for the transmission of electric energy in interstate commerce, (b) that provides transmission that is a party to the PJM Transmission Owners Agreement and PJM Operating Agreement.

The capability of a specific resource with appropriate telecommunications, control and response capability to increase or decrease its output in response to a regulating control signal to control for frequency deviations.

The Capability Clearing Price for regulation is the 5 minute jointly co-optimized regulation price to reserve MWs. It is set by finding the residual between the RMCP and the RMPCP.

The shadow price of supplying the last MW of regulation needed in the area, thus satisfying its regulation requirement constraint. The shadow price is obtained through a simultaneous 5 minute jointly co-optimization of Regulation, Synchronized Reserve and Energy to minimize overall production cost. The co-optimized result ranks all available regulating resources in ascending merit order price, where merit order is the offer plus lost opportunity cost, simultaneously determining the least expensive set of resources necessary to provide regulation and synchronized reserve for the operating hour while taking into account any resources self-scheduled to provide any of these services. This is the starting point for finding the Regulation Market Performance Clearing Price and Regulation Market Capability Clearing Price.

The Performance Clearing Price for regulation is the 5 minute jointly co-optimized regulation price to move MWs. It is set by finding the maximum performance offer from the set of all cleared resources‘ performance offers.

The degree of performance of the bulk electric system that results in electricity being delivered to customers within accepted standards and in the amount desired. Reliability may be measured by the frequency, duration, and magnitude of adverse effects on the electric supply.

An agreed upon four-level plan between Allegheny Power System (APS), PJM, and Virginia Power Company (VAP) in which assistance is given by participating control areas in order to maintain interregional reliability.

Reliability Must Run (RMR) refers to a generating unit that is slated to be retired by its owners but is needed to be available for reasons of reliability. Typically, it is requested to remain operational beyond its proposed retirement date until transmission upgrades are completed.

PJM’s resource adequacy construct. The purpose of RPM is to develop a long term pricing signal for capacity resources and LSE obligations that is consistent with the PJM Regional Transmission Expansion Planning Process (RTEP) process.  RPM adds stability and a locational nature to the pricing signal for capacity.

The principles and standards established by NERC or ReliabilityFirst Corporation to define, among other things, an acceptable loss of load due to inadequate generation or transmission capability.

ReliabilityFirst is a not-for-profit company incorporated in the State of Delaware whose goal is to preserve and enhance electric service reliability and security for the interconnected electric systems within its territory. ReliabilityFirst was approved by the North American Electric Reliability Council (NERC) to become one of eight Regional Reliability Councils in North America and began operations on January 1, 2006.

ReliabilityFirst is the successor organization to three former NERC Regional Reliability Councils: the Mid-Atlantic Area Council (MAAC), the East Central Area Coordination Agreement (ECAR) and the Mid-American Interconnected Network organizations (MAIN).

The part of the SCADA system that is responsible for collecting data from transducers at remote locations and converting to a digitized quantity for serial transmission to the SCADA computer.

Guidelines or requirements at the state or federal level requiring energy suppliers to provide specified amounts of electric energy from eligible renewable energy resources.

The generating capability to carry the load reliability, economically providing protection against instantaneous load variations, load forecast error, and failure of system equipment.

Any customer who offers to sell transmission capacity it has purchased (defined in Standards and Communication Protocols for OASIS).

Procedures for “PJM Reserve Requirements and Related Studies,” issued and maintained by the Engineering planning staff of the PJM Interconnection, L.L.C.

The maximum amount of capacity and energy that the Transmission Provider agrees to transmit for the Transmission Customer over the Transmission Providers Transmission System between the Point(s) of Receipt and the Point(s) of Delivery. Reserved capacity is expressed in terms of whole megawatts on a 60-minute interval (commencing on the clock hour) basis.

The time a unit is available for service but not dispatched due to economics or other reasons.

The maximum amount of capacity and energy reserved or agreed to be transmitted for the Transmission Customer over the PJM RTO Transmission Service Facilities between the Point(s) of Receipt and the Point(s) of Delivery. Reserved Transmission Capability shall be expressed in terms of whole megawatts on a 60-minute interval (commencing on the clock hour) basis.

Capacity that currently is not being used but that can be quickly available for the unexpected loss of generation.

Resource refers to the total contributions provided by supply-side and demand-side facilities and or actions.

The clearing price in the Base Residual Auction or Incremental Auctions as determined by optimization algorithm for each auction. The Resource Clearing Price within an LDA is equal to the sum of (1) the marginal value of system capacity; and (2) the Locational Price Adder, if any, for the LDA. The Resource Clearing Price for the Unconstrained Market Area is the marginal value of system capacity. PJM posts the Resource Clearing Prices for all resources that clear in the Base Residual Auction and all Buy Bids and Sell Offers that clear in the Incremental Auctions.

A computer optimization program used by the PJM Scheduling Coordinator to schedule marginal resources required for future operating periods.

The rate of load change that a generating unit can achieve for normal Economic loading purposes in MW/minute.

The energy end-user; interfaces only with the load aggregator (LA) and electric distribution company (EDC), not with PJM.

The agreed-upon hourly load, within the service territory of the Local Distribution Company, for which the Load Aggregator must provide energy to customers.

An end-user of electric energy within the PJM RTO.

An energy transaction scheduled between a Load Aggregator and a Local Distribution Company for the Load Aggregator to supply energy for retail load in the LDC’s service area.

ReliabilityFirst is a not-for-profit company incorporated in the State of Delaware whose goal is to preserve and enhance electric service reliability and security for the interconnected electric systems within its territory. ReliabilityFirst was approved by the North American Electric Reliability Council (NERC) to become one of eight Regional Reliability Councils in North America and began operations on January 1, 2006.

ReliabilityFirst is the successor organization to three former NERC Regional Reliability Councils: the Mid-Atlantic Area Council (MAAC), the East Central Area Coordination Agreement (ECAR) and the Mid-American Interconnected Network organizations (MAIN).

Right of First Refusal (ROFR) means that incumbent transmission owners have the right to construct, own and propose cost recovery for any new transmission project that is located within their service territory and approved for inclusion in a transmission plan developed through FERC guidelines. The FERC has stated in Order 1000 that it is unjust and unreasonable to grant incumbent transmission providers a federal right of first refusal with respect to certain transmission projects because doing so may result in the failure to consider more efficient or cost-effective solutions to regional needs and, in turn, result in the inclusion of higher-cost solutions in the regional plan.

Disconnection of load on a rotational or cyclical basis for a specific period of time during periods of generation or transmission deficiency.

Guidelines or requirements at the state or federal level requiring energy suppliers to provide specified amounts of electric energy from eligible renewable energy resources.

A computer optimization program used by the PJM Scheduling Coordinator to schedule marginal resources required for future operating periods.

The Regional Transmission Expansion Planning (RTEP) Process is PJM’s comprehensive annual process examines the three interrelated components of electric power system reliability: load, generation, and transmission. The RTEP employs a range of planning study tools and methodologies to analyze and assess each component to ensure that reliability remains firm. The RTEP process is designed to meet established reliability criteria, keep markets robust and competitive, and ensure stable operations.

The Regional Transmission Expansion Planning (RTEP) Process is PJM’s comprehensive annual process that examines the three interrelated components of electric power system reliability: load, generation, and transmission. The RTEP Process employs a range of planning study tools and methodologies to analyze and assess each component to ensure that reliability remains firm. The RTEP process is designed to meet established reliability criteria, keep markets robust and competitive, and ensure stable operations.

Established in the BRA and is used to determine the Base Zonal RPM Scaling Factors to use in determining Base Zonal Unforced Capacity Obligation.

The sum of the Zonal Weather Normalized Summer Coincident Peaks.

The part of the SCADA system that is responsible for collecting data from transducers at remote locations and converting to a digitized quantity for serial transmission to the SCADA computer.

This document contains the detailed requirements for implementation of an OASIS node. It was prepared by an EPRI-led industry working group.

A system of remote control and telemetry used to monitor and control the electric system.

A set of MWh values consisting of one value for each hour of a single day.

Summation of total Reserve not available within 30 minutes and total non-reported capacity reductions.

This document contains the detailed requirements for implementation of an OASIS node. It was prepared by an EPRI-led industry working group.

Any customer who offers to sell transmission capacity it has purchased (defined in Standards and Communication Protocols for OASIS).

Reserve capability that can be converted fully into energy within a 10- to 30-minute interval following the request of PJM. Equipment providing Secondary Reserve need not be electrically synchronized to the power system.

Any customer who offers to sell transmission capacity it has purchased (defined in Standards and Communication Protocols for OASIS).

One of five divisions of the Members Committee, which are: the Generation Owners Sector, Other Suppliers Sector, Transmission Owners Sector, Electric Distributors Sector, and End-Use Customers Sector.

Each Sector’s Sector Vote split into components for and against a pending motion in direct proportion to the Member Votes cast within the Sector for and against the pending motion (rounded to two decimal places).

The agreement relating to the sharing of certain generating capacity and related services among the parties to that agreement.

A generating resource that is scheduled and controlled by the owner or operator of the facility, not following the economic dispatch rate, under the overall coordination of PJM.

Resources specified by a resource provider in the Base Residual Auction to provide a mechanism to guarantee that the resource will clear in the Base Residual Auction. For each resource-specific sell offer, if a resource is designated as self-scheduled by the resource provider, the minimum and maximum MW amounts specified must be equal and the sell offer price will be set to zero. Self-Scheduled resources will be cleared first in the Base Residual Auction, and cannot set the clearing price as the marginal resource, since these resources lack flexibility.

The SERC Reliability Corporation (SERC) is a nonprofit corporation responsible for promoting and improving the reliability, adequacy, and critical infrastructure of the bulk power supply systems in all or portions of 16 central and southeastern states.

The initial agreement and any amendments or supplements entered into by the Transmission Customer and the Transmission Provider for service under the Tariff.

The date the Transmission Provider begins to provide service pursuant to the terms of an executed Service Agreement or the date the Transmission Provider begins to provide service.

A market feasibility test to ensure that the transmission system can support the subscribed set of Financial Transmission Rights (FTRs) during normal system conditions. The test models the flow according to the MW values of the FTRs on each line and determines if these values can be supported without causing a constraint.

The constraint shadow price represents the incremental reduction in congestion cost achieved by relieving a constraint by 1 MW. The shadow price multiplied by the flow (in MW) on the constrained facility during each hour equals the hourly gross congestion cost for the constraint.

An agreement between PJM and NPCC (includes ISO-NE, NY-ISO, IESO, and New Brunswick) to assist the opposite pool in faster recovery from a sudden loss of generation or energy purchase than it would otherwise have achieved without outside assistance.

Firm Point-To-Point Transmission Service under Part II of the PJM RTO Open Access Tariff with a term of less than one year.

A market feasibility test to ensure that the transmission system can support the subscribed set of FTRs during normal system conditions. The test models the flow according to the MW values of the FTRs on each line and determines if these values can be supported without causing a constraint.

A Party that serves only retail customers that affiliates of such Party; owns or controls generation facilities located at one or more of the retail customer location(s) that in the aggregate satisfy at least 50% of the Party’s Unforced Capacity obligations; and serves retail customers where each location’s peak load is at least 10 MW and obligation peak load is at least 25 MW and the sum of all locations is at least 100 MW.

The bus, buses, company or pool receiving the transferred energy to evaluate ATC transfers for a given path using generation or load changes, or

The point of receipt of the energy in a PJM eSchedules Contract.

Events that occur on the earth as a result of solar activity. The sun emits a stream of charged particles that flow to Earth and disturb Earth’s magnetic field causing unwanted flows and possible damage in electrical transmission systems.

Events that occur on the earth as a result of solar activity. The sun emits a stream of charged particles that flow to Earth and disturb Earth’s magnetic field causing unwanted flows and possible damage in electrical transmission systems.

The portion of the Zone without choice of suppliers throughout the relevant Planning Period.

The bus, buses, company, or pool supplying the energy used to evaluate ATC transfers for a given path using generation or load changes, or

The point of delivery of the energy in a PJM InSchedule contract.

Now known as Synchronized Reserve Market.

An off-cost operation technique that uses more than one geographical area to control transmission limitations.

Energy bought or sold by Market Participants through the PJM Interchange Energy Market at Locational Marginal Prices.

The ability of a power system to maintain a state of equilibrium during normal and abnormal system conditions or disturbances.

A static Var compensator (SVC) is an electrical device for providing fast-acting, reactive power compensation on high voltage electricity transmission networks.

Period of time where the auction schedule follows the proposed three year forward planning dates. The steady-state condition of RPM begins with the 2011/12 Delivery Year.

The ability of a power system to remain in equilibrium during relatively low or normal load changes and to damp out any oscillations caused by such change.

A facility for switching electrical elements, transforming voltage, regulating power, or metering.

The period from June 1 through September 30 of the Planning Period.

A system whose maximum one-hour load during the period of June through September exceeds its reduced winter peak.

A form of remote control comprising an arrangement for the selective control of remotely located facilities by an electrical means over one or more common interconnecting channels.

A system of remote control and telemetry used to monitor and control the electric system.

A PJM survey initiated during capacity shortage conditions to obtain information from member companies to determine the expected PJM reserve for a peak period.

A transient variation of current, voltage, or power flow in an electric circuit.

The megawatt loading of a line at which the reactive power consumed by the inductance in a circuit is equal to the reactive power generated by the capacitance of the circuit.

A verification relay whose function is to operate when two input voltages and frequencies are within predetermined magnitude and phase angle limits.

The process of connecting together two previously separated electrical apparatus after matching frequency, voltage, etc.; for example, paralleling a generator to the system (also referred to as phasing a unit online).

Reserve capability which is required in order to enable an area to restore its tie lines to the pre-contingency state within 10 minutes of a contingency that causes an imbalance between load and generation. During normal operation, these reserves must be provided by increasing energy output on electrically synchronized equipment, by reducing load on pumped storage hydroelectric facilities or by reducing the demand by demand side resources. During system restoration, customer load may be classified as synchronized reserve.

The capability that can be converted fully into energy within 10 minutes or customer load that can be removed from the system within 10 minutes of the request from the PJM dispatcher, and must be provided by equipment electrically synchronized to the system.

A synchronous machine that operates without mechanical load to supply or absorb reactive power for voltage control purposes.

Refers to the generation and transmission facilities and the operation thereof of a pool or member company.

The sum of the net capabilities, based on specified summer generating conditions, of all the electric generating units of the LSE, with adjustments for firm capacity commitments and decreased by the amount of the limitations imposed by transmission facilities or any other limitations.

A System Impact Study provides a comprehensive and detailed system analysis that test deliverability under peak load conditions as well as test impacts on system stability. Study results identify system constraints caused by the queued request and delineate the necessary attachment facilities, local upgrades and network upgrades required to solve those constraints. The study provides refined, comprehensive cost responsibility and construction lead time estimates for required upgrades.

The cost to the PJM system of generating the next unit of output.

An individual at an electric system control center whose responsibility it is to monitor and control that electric system in real time.

The “target” to measure the peak period availability of capacity from the generator in the Delivery Year and it may be different from the Delivery Year UCAP value of such generator. The TCAP for a unit is calculated as the Total Unit ICAP Commitment Amount times (1 – EFORd-5).

Substitution of a data quantity in place of a dynamic quantity (aka manual replace).

The process by which measurable electrical quantities from substations and generating stations are instantaneously transmitted using telecommunication techniques.

A temperature-humidity index (THI) gives a single, numerical value reflecting the outdoor atmospheric conditions of temperature and humidity as a measure of comfort (or discomfort) during warm weather. THI is defined as: THI =Td – (0.55 – 0.55 RH) * (Td – 58) where Td is the dry-bulb temperature and RH is the percentage of relative humidity.

A temperature-humidity index (THI) gives a single, numerical value reflecting the outdoor atmospheric conditions of temperature and humidity as a measure of comfort (or discomfort) during warm weather. THI is defined as: THI =Td – (0.55 – 0.55 RH) * (Td – 58) where Td is the dry-bulb temperature and RH is the percentage of relative humidity.

The maximum power flow possible into or through some particular part of the system while maintaining the real power flows on the transmission system within the operating criteria.

The maximum amount of electrical current that a transmission line or electrical facility can conduct over a specified time period before it sustains permanent damage by overheating or before it violates public safety requirements.

Any sale for resale in interstate commerce to a Power Purchaser that is not designated as part of Network Load under the Network Integration Transmission Service, but not including a sale of energy through the interchange energy market established under the PJM Operating Agreement.

A circuit connecting two or more Control Areas or systems of an electric system.

The normal mode of operation under automatic generation control in which the area control error is determined as the difference between actual net interchange and the scheduled net interchange plus a frequency bias contribution (adjustment for difference between actual and scheduled frequency).

A NERC procedure developed for the Eastern Interconnection to mitigate overloads on the transmission system by allowing reliability coordinators to request the curtailment of transactions that are causing parallel flows through their system.

A computerized information system developed by PJM that allows Load Aggregators to provide and obtain information needed to schedule external energy transactions, and allows LDCs to schedule internal and external energy transactions.

A PJM Member that owns Transmission Facilities or leases with rights equivalent to ownership in Transmission Facilities. Taking transmission service is not sufficient to qualify a Member as a Transmission Owner

TTC is the capacity of a transmission path taking into account ATC and all of the complex transmission network operating factors.

A computerized information system developed by PJM that allows Load Aggregators to provide and obtain information needed to schedule external energy transactions, and allows LDCs to schedule internal and external energy transactions.

An operating limit relating to the permissible power transfer between specified areas of the transmission system.

An electromagnetic device for transforming energy from one circuit to another of different voltage levels as in alternating current system.

A fault that occurs for a short or limited time, or that disappears when the faulted device is separated from all electrical sources and that does not require repairs to be made before the device can be returned to service either manually or automatically.

The ability of a power system to maintain synchronism between its parts when subjected to a fault of specified severity and to regain a state of equilibrium.

Period of time where the auction schedule is compressed in order for the auction schedules to occur before the delivery year. The Transition Period takes place during the 2007/08 through 2010/11 Delivery Years.

A charge attributable to the increased cost of energy delivered at a given load bus when the Transmission System serving that load bus is operating under constrained conditions.

The allocated share of total Transmission Congestion Charges credited to each holder of Fixed Transmission Rights.

Limitations on a transmission line or element that may be reached during normal or contingency system operations.

Any Eligible Customer (or its Designated Agent) that (i) executes a Service Agreement, or (ii) requests in writing that PJM file with the FERC, a proposed unexecuted Service Agreement to receive transmission service under Part II of the PJM OATT.

Facilities within the PJM Region that have been approved by or meet the definition of transmission facilities established by FERC; or have been demonstrated to the satisfaction of the Office of Interconnection to be integrated with the PJM Region transmission system and integrated into the planning and operation of the PJM Region to serve all of the power and transmission customers within the PJM Region.

A NERC procedure developed for the Eastern Interconnection to mitigate overloads on the transmission system by allowing reliability coordinators to request the curtailment of transactions that are causing parallel flows through their system.

A PJM Member that owns Transmission Facilities or leases with rights equivalent to ownership in Transmission Facilities. Taking transmission service is not sufficient to qualify a Member as a Transmission Owner

A member that owns or leases, with rights equivalent to ownership, Transmission Facilities. Taking transmission service is not sufficient to qualify a Member as a Transmission Owner.

An Agreement amended from time to time among Transmission Owners in the PJM RTO, providing for an Open-Access Transmission Tariff in the PJM RTO.

Maximum firm usage of the Transmission Provider’s Transmission System in a calendar month.

The Office of the Interconnection.

The amount of total non-simultaneous transfer capability necessary to ensure that the interconnected transmission network is secure under a reasonable range of system conditions.

PJM monitoring program that closely evaluates the integrity of the PJM transmission system on a real-time basis.

Point-to-Point Transmission Service provided on a firm and non-firm basis.

A request made by a participant for transmission service over PJM designated facilities. Typically the request is for either short-term or long-term service, over a specific path for a specific megawatt amount. PJM evaluates each request and determines if it can be accommodated, responding back to the requesting parting in a time frame outlined in the PJM transmission tariff.

A document that gives authorization to post transmission requests on the OASIS.

Transmission and ancillary services information that must be made available by public utilities on a non-discriminatory basis to meet the regulatory requirements of transmission open access (defined in Standards and Communication Protocols for OASIS).

A collection of zip codes within a transmission zone, where any one location on the demand response registration located within such zip code will mean that all locations on such registration should respond to the PJM dispatch signal unless otherwise notified by PJM. Direct Load Control registrations that do not have the operational capability to respond to a transmission subzone dispatch signal do not need to respond to a transmission subzone dispatch signal.

A collection of zip codes within a transmission zone, where any one location on the demand response registration located within such zip code will mean that all locations on such registration should respond to the PJM dispatch signal unless otherwise notified by PJM. Registrations based on residential and small commercial direct load control programs that do not have the operational capability to respond to a transmission subzone dispatch signal do not need to respond to a transmission subzone dispatch signal unless instructed by PJM to respond with all related direct load control registrations.

The facilities owned, controlled or operated by the transmission provider within the PJM RTO that are used to provide Transmission Service.

The amount of total non-simultaneous transfer capability necessary to ensure that the interconnected transmission network is secure under a reasonable range of system conditions.

A request made by a participant for transmission service over PJM designated facilities. Typically the request is for either short-term or long-term service, over a specific path for a specific megawatt amount. PJM evaluates each request and determines if it can be accommodated, responding back to the requesting parting in a time frame outlined in the PJM transmission tariff.

PJM monitoring program that closely evaluates the integrity of the PJM transmission system on a real-time basis.

TTC is the capacity of a transmission path taking into account ATC and all of the complex transmission network operating factors.

The “target” to measure the peak period availability of capacity from the generator in the Delivery Year and it may be different from the Delivery Year UCAP value of such generator. The TCAP for a unit is calculated as the Total Unit ICAP Commitment Amount times (1 – EFORd-5).

A central repository for generating unit cost, availability and constraint data at PJM. Information is entered by the PJM member companies and is used for scheduling, dispatching and accounting.

The capacity reported on the load and capacity printout (10), minus the calculated operating capacity, minus scheduled capacity not available in 30 minutes. This is the amount of capacity that is reported available at the time of the Instantaneous Reserve Check (IRC), but cannot be accounted for based on system conditions at the time of the IRC.

The algebraic difference at any time between the installed and the available capability at that time. Available capability is determined according to definitions and criteria specified by the Operating Committee and approved by the PJM Board of Managers upon consideration of the recommendation of the Reliability Committee. The several component causes of unit unavailability, namely:

• Forced outages
• Planned and maintenance outages
• Miscellaneous adjustments are determined according to definitions and criteria specified by the Operating Committee and Planning Committee and approved by the PJM Board of Managers upon consideration of the recommendation of the Reliability Committee.

A rate in dollars per MWh equal to the cost or bid price in dollars per MWh of the highest-priced increment of energy that was requested to operate by PJM during that hour if no constraints were experienced on the Transmission System, or the highest-priced increment of energy that would have been requested to operate if constraints actually experienced on the Transmission System had been disregarded.

Any posted path not determined to be a constrained posted path (defined in FERC Order 889).

Installed capacity rated at summer conditions that are not on average experiencing a forced outage or forced derating, calculated for each Capacity Resource on the 12-month period from October to September without regard to the ownership of or the contractual rights to the capacity of the unit.

The Internet addressing scheme that defines the route to a file or program. For example, a home page on the World Wide Web is accessed via its URL.

A central repository for generating unit cost, availability and constraint data at PJM. Information is entered by the PJM member companies and is used for scheduling, dispatching and accounting.

The benefits factor translates fast moving resource‘s MWs into traditional MWs or effective MWs. These effective MWs reflect the rate of substitution between resources following the different regulation signals. This is used in regulation market clearing and pricing.

Transmission Service that is not pre-defined in the Operating Agreement, with the compensation determined by PJM.

Any generation (+) or pumping load (–) that is not telemetered.

The Internet addressing scheme that defines the route to a file or program. For example, a home page on the World Wide Web is accessed via its URL.

The Utility Wind Integration Group (UWIG) supports the integration of wind resources into the electrical system. The more than 100 members of UWIG include investor-owned, public power and electric cooperative utilities; transmission system operators; and associate members that are corporate, government and academic organizations.

Defines the maximum price for a given level of Capacity Resource commitment relative to the applicable reliability requirement. VRR Curves are defined for the PJM Region and each of the constrained LDAs within the PJM region.

A measure of the variability of a unit’s partial forced outages that is used in reserve margin calculations.

The control of transmission voltage through adjustments in generator reactive output and transformer taps, and by switching capacitors and inductors on the transmission and distribution systems.

A means to reduce customer demand by lowering voltage on the distribution side of the system.

The condition of an electric system in which the sustained voltage level is controllable and within predetermined limits.

Estimated seasonal peak assuming weather at average peak-day conditions. Also referred to as 50/50 loads. Historic weather normalized loads are produced by the Load Analysis Subcommittee.

An adjustment technique implemented by the Load Analysis Subcommittee, to remove the impact of varying weather conditions on seasonal peaks. The normalization procedure estimates the relationship between PJM daily peak load and weather conditions. This relationship is evaluated at average peak-day weather conditions to establish a PJM weather normalized peak. PJM normalized peaks are used in the establishment of accounted-for obligations.

The period of the week that begins at 0800 on Monday and ends at 2200 on Friday.

The period of the week that begins at 2200 on Friday and ends at 0800 on Monday.

The average of the Resource Clearing Prices that result in all the auctions for a specific Capacity Resource, weighted by the Unforced Capacity cleared for that particular resource. This value is used to determine the Daily Peak-Hour Period Availability Charge Rate for an individual resource.

The average of the Resource Clearing Price of the sub-zones, weighted by the Unforced Capacity of Resources Cleared in each of the sub-zones. This value is used to calculate CTR values on a Zonal basis, when a Zone and its sub-zones are constrained LDAs. This is also used to calculate the Auction Credit to DR on the zonal basis if EDC cannot provide DR data by sub-zones.

The contracted use of electrical facilities of one or more entities to transmit electricity for another entity.

An energy transaction flowing through a transmission grid whose origination and destination are outside of the transmission grid.

Service type WLR is used to determine load responsibility and resulting LRS for wholesale entities not currently fully metered to PJM.

An entity that purchases electric energy for resale, or uses transmission service for such transactions, within the PJM RTO.

A bulk energy transaction between two market entities.

The period from December 1 through February 29 of the Planning Period.

A system whose reduced winter peak is greater than its maximum one-hour load during the period of June through September.

Service type WLR is used to determine load responsibility and resulting LRS for wholesale entities not currently fully metered to PJM.

Refers to information obtained from sources outside the PJM RTO, e.g., NERC, ECAR, NPCC and SERC. Typically, this term is used to reflect those neighboring regions electrically close to PJM facilities.

The price of UCAP in a Zone that an LSE that has not elected the FRR Alternative is obligated to pay for a Delivery Year. Zonal Capacity Prices are calculated in the Base Residual Auction or the Second Incremental Auction clearing process as the sum of (1) the marginal value of system capacity for the PJM Region;(2) the Locational Price Adder, if any, for such zones in a constrained Locational Deliverability Area (LDA); and (3) an adjustment in the Zone, if required, to account for any resource make-whole payments. Preliminary Zonal Capacity Prices are the result of the clearing of the Base Residual Auction. Adjusted Zonal Capacity Prices are the result of the clearing of the Second Incremental Auction. Final Zonal Capacity Prices are determined after the ILR Resources are cCertified (3 months prior to the Delivery Year).

The rate calculated as a ratio of economic value of CTRs to zonal unforced capacity obligation. These rates are calculated as the Base Zonal CTR Credit Rate after the Base Residual Auction (used to calculate Base Zonal ILR Price) and as the Final CTR Credit Rate adjusted for the results of the Second Incremental Auction (used to calculate Final Zonal ILR Price) Zonal CTR Credit Rate is subtracted from Zonal Capacity Price to estimate Net Load Price.

The rate calculated as a ratio of economic value of CTRs to zonal unforced capacity obligation. These rates are calculated as the Base Zonal CTR Credit Rate after the Base Residual Auction (used to calculate Base Zonal ILR Price) and as the Final CTR Credit Rate adjusted for the results of the Second Incremental Auction (used to calculate Final Zonal ILR Price) Zonal CTR Credit Rate is subtracted from Zonal Capacity Price to estimate Net Load Price.

A rate calculated as a ratio of economic value of CTRs to total CTRs allocated to LSEs in a zone. This rate is used to settle CTRs by calculating credit for CTRs owned.

Zonal ILR Prices are the prices paid the Interruptible Load for Reliability that is certified. These prices are calculated as the Base Zonal ILR Price after the Base Residual Auction and as Final Zonal ILR Price adjusted for the results of the Second Incremental Auction.

Zonal ILR Prices are the prices paid the Interruptible Load for Reliability that is certified. These prices are calculated as the Base Zonal ILR Price after the Base Residual Auction and as Final Zonal ILR Price adjusted for the results of the Second Incremental Auction.

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.