Order 2000 and PJM: A Natural Match Craig Glazer Manager of Regulatory Affairs PJM Interconnection,...

Order 2000 and PJM:

A Natural Match

Order 2000 and PJM:

A Natural Match

Craig Glazer

Manager of Regulatory Affairs

PJM Interconnection, LLC

PJM and Order 2000: A Natural Match


First ISO to enter service Effective stakeholder process Membership support from

all stakeholder groups Currently operating efficient

and robust competitive markets



FERC-approved congestion management mechanisms that rely on market forces

PJM playing key role in implementing retail competition in all PJM states



Independence Independent Governance and Board

Right to Amend PJM Tariff to promote competitive markets and reliability



Scope and Configuration 180 Members Market Transactions with a Value of $1.8 B 120 Million MWHR of

Scheduled Energy Transactions 8,000 Miles of Transmission Lines,

8.7% of US Population and the Largest Energy Market in North America



Scope and Configuration Active committees addressing

SEAMS issues with NY and New England --

Progress can be tracked at www.isomou.com



Operational authority Short-term reliability Planning and expansion Market monitoring Open architecture:

No structural impediments The next step: PJM West



Transmission Enhancement and Innovative Rates Component

Reaffirmation of T.O.’s commitment to build

Commitment to undertake economic enhancement projects

Rate Package: Rate Moratorium Cost Recovery Deferral of New Projects Accelerated Depreciation of New Investments Risk Adjusted ROE for New Transmission Investments



Rate Package Rate Moratorium Until 12/31/04 Deferral of Capital Costs Accelerated Depreciation

of New Investments Risk-Adjusted ROE Continuation of Zonal Pricing Development of Performance Measures



Rate Plan Checks and Balances PJM RTEP process provides an open,

stakeholder process for review of need for transmission projects.



The Next Step PJM West -- a template for development

of a uniform market over a larger region An open architecture plan for

evolution of ownership structures SEAMS issues addressed through a

single market across a wider region: Uniform Rules and Tariff while maintaining Zonal Prices and adjusting for special Regional Needs



Inter-RTO SEAMS Coordination MOU among New York, New England,

PJM and Ontario



Inter-RTO SEAMS Coordination Operations Working Group

Coordinate Documentation and Terminology

Create Graphic Displays of Emergency Procedures and Coordinate Timelines for Accepting and Implementing Transactions



Inter-RTO SEAMS Coordination Planning Working Group

Establish Protocols for Coordinated Planning Activities

Facilitate Performance and Review of Joint Planning Studies

Review Analyses of Adequacy and Reliability among the Three ISOs



Inter-RTO SEAMS Coordination Business Practices Working Group

Identifying and Reviewing Existing and Planned Market Rules for Impacts on all Three ISOs.

Recommending Appropriate Regulatory Filings



Inter-RTO SEAMS Coordination Information Technology Working Group

Finding New Technology Solutions to Common Interface Issues



Inter-RTO SEAMS Coordination The Bigger Challenge: Different Markets

with Different Rules of the Road Software Solutions? Uniform Market Rules Solutions? Single Market Solutions?



PJM West: The Single Market Concept One Market One Tariff One OASIS One Congestion Management System



PJM West: Allowance for Regional Differences Multiple Control Areas Different Reliability Councils Alternatives to RAA to Meet NERC

“1 Day in 10 Years” Standard



PJM West: Maintenance of Key Market Functions In RTO Power Market Administration Congestion Management Market Monitoring



PJM West: Maintenance of Key Market Functions In RTO Physical, operational and

functional control of facilities Financial responsibility for

assuring firmness of services sold

Order 2000 and PJM: A Natural Match Craig Glazer Manager of Regulatory Affairs PJM Interconnection,...

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