June 12, 2007 Supplier Operating Manual For Atlantic City Electric Company, Delmarva Power and Pepco

Transcription

1 Suppler Operatng Manual For Atlantc Cty Electrc Company, Delmarva Power and Pepco Procedures for Determnng Peak Load Contrbuton For Capacty and Transmsson Servce And Hourly Energy Oblgatons

2 TABLE OF CONTENTS I INTRODUCTION...3 II SUPPLIER CAPACITY PEAK LOAD CONTRIBUTION Introducton Annual Customer Capacty Peak Load Contrbuton Determnng Prelmnary Customer Peak Loads Reconclng Prelmnary Capacty Peak Loads to the Company Zonal Capacty Peak Allocaton New Customers Supplers Capacty Peak Load Contrbuton Informaton Coordnaton Responsbltes Suppler PHI...11 III SUPPLIER NETWORK SERVICE PEAK LOAD CONTRIBUTION Introducton Annual Customer Network Servce Peak Load Contrbuton Determnng Prelmnary Customer Network Servce Peak Loads Reconclng Prelmnary Transmsson Peak Loads to the Company Zonal Peak Load New Customers Supplers Network Servce Peak Load Contrbuton Informaton Coordnaton Responsbltes Suppler PHI...19 IV SUPPLIER HOURLY ENERGY OBLIGATION Introducton Day-ahead Energy Market Real Tme Balancng Market Day-after Estmates Market Adjustments Determnng Fnal Hourly Energy Oblgaton for Real-tme Market Scalng Hourly Energy Loads to the Company Fnal Zonal Energy Load Determnaton of the Fnal Adjustment to the Supplers Hourly Energy Oblgaton (HEO) [60-Day Reconclaton] Settlement Beyond "60 Days"..35 Appendx 1: Load Proflng Methodology...35 Appendx 2: Development of Concdence Factors...38 Appendx 3: Glossary...40 Page of 46

3 I INTRODUCTION Ths Manual descrbes the procedures that Pepco Holdngs, Inc. (PHI), whch s represented by the ndvdual brands of Pepco, Atlantc Cty Electrc and Delmarva Power (collectvely, The Company ) wll use to derve certan load and energy accountng nformaton assocated wth mplementng retal access. Its purpose s to facltate understandng of data coordnaton requrements establshed by PJM Interconnecton, L.L.C. (PJM) to account for electrcty transactons n a compettve market envronment. The three key nformaton tems addressed nclude Suppler Capacty Peak Load Contrbuton (Suppler Capacty PLC), Suppler Network Servce Peak Load Contrbuton (Suppler Transmsson PLC), and Suppler Hourly Energy Oblgaton (Suppler HEO). The frst two tems, Suppler Capacty Peak Load Contrbuton and Suppler Network Servce Peak Load Contrbuton, are necessary for allocatng capacty and network servce oblgatons for enttes servng load wthn the PJM Control Area. The last tem, Suppler Hourly Energy Oblgaton, s the bass for transacton accountng as part of the PJM Interchange Energy Market settlement system; specfcally, to conduct hourly energy-nterchange bllng and subsequent bllng reconclaton. The Company wll use Lodestar s Proflng and Settlement System (LPSS), to calculate the Capacty PLC, Transmsson PLC, and Suppler HEO, as well as all assocated data management functons. Data wll be submtted electroncally to PJM. Factors used for ther dervaton wll be made avalable to the Supplers va the specfc brand web ste ( Ths manual conssts of three major sectons, each outlnng the methods used for calculatng Suppler Capacty PLC, Suppler Network Servce PLC, and Suppler HEO, respectvely. These methods, as mplemented by the LPSS, reflect the reportng responsbltes outlned n the followng documents: ACE/DPL/Pepco Thrd Party Suppler Agreements PJM Relablty Assurance Agreement Ths agreement s ntended to ensure the adequacy of electrc capacty resources to meet peak load and emergency response requrements n the PJM Control Area. PJM Open Access Transmsson Tarff (OATT) The OATT provdes rates, terms and condtons for transmsson servces provded through transmsson facltes n the PJM Control Area. PJM Manuals. The PJM manuals are a set of nstructons and gudelnes for the operaton, plannng, and accountng requrements of the PJM Control Area and the PJM Interchange Energy Market

4 Each secton presents sample calculatons showng the step-by-step dervaton of the processes usng sample data. For the Suppler Capacty PLC and Suppler Transmsson PLC sectons, the sample calculatons are based on a zone for a Suppler wth three customers. For the Suppler HEO, the sample calculatons are based on an energy settlement for two Supplers that each serve three customers (Supplers A and B). Appendx 1 descrbes how the load profles are developed, as well as the specfc load proflng method used by the Company to support capacty and energy settlement processes. Appendx 2 documents the development of Customer Concdent Factors. Appendx 3 s a glossary of PJM and LPSS terms. Note that the nformaton provded n ths Manual reflects the Company s understandng of PJM s prevalng procedures, and may be revsed occasonally to reflect changes to Company operatons, PJM commttee actons, and regulatory mandates. See any of the brand-specfc web stes ( for updates to ths Manual

5 II SUPPLIER CAPACITY PEAK LOAD CONTRIBUTION 1 Introducton As requred by the PJM Relablty Assurance Agreement (RAA), the PJM Offce of the Interconnecton (PJM OI) calculates the PJM zonal capacty oblgaton. The zonal capacty oblgaton serves as the baselne level of nstalled capacty resources suffcent to meet the forecasted load and reserve margn, accountng for unt unavalablty due to outages (forced and mantenance) and load devatons. The PJM nstalled capacty oblgaton s assessed to supplers based on ther peak load contrbuton (Capacty Peak Load Contrbuton or Capacty PLC). The PJM IO assgns each Local Dstrbuton Company (LDC) a share of the overall PJM peak load contrbuton. Each Local Dstrbuton Company s responsble for calculatng and reportng the Capacty PLC for each suppler servng load n ther servce terrtory. The sum of the customer s Capacty PLC wll equal the LDC s share of the overall PJM Peak Load Contrbuton. In accordance wth the PJM RAA and PJM rules and procedures, the Company wll calculate a Peak Load Contrbuton tcket for each customer on an annual bass. The PLC value for a customer represents ther share of the LDC s peak load contrbuton. The customer s share s calculated based on the customer s average unrestrcted load concdent wth the fve hghest PJM unrestrcted peak loads. The fve PJM peak hours (occurrng on separate days) are provded by PJM. The customer PLC wll be updated n accordance wth PJM rules and procedures, wth supportng data posted on the Company s Web ste. The Company wll calculate and report to PJM the Suppler Capacty Peak Load Contrbuton (Suppler Capacty PLC), whch s the sum of all customers PLC for each suppler. Ths secton descrbes the methods and calculatons used to derve the customer and Suppler Capacty PLC. The sample calculatons presented are based on a Suppler wth three customers. 2 Annual Customer Capacty Peak Load Contrbuton The dervaton of customer Capacty Peak Load Contrbutons (Capacty PLC or CPLC) conssts of two procedures: Determnng the prelmnary customer peak loads. Reconclng customer peak loads to the Company zonal peak load. 2.1 Determnng Prelmnary Customer Peak Loads For ths procedure, the company wll estmate hourly peak loads for each customer accordng to the customers meterng type and profle class. Snce the sum of the customers estmated peak loads, can devate from the company s allocated peak load share wthn the PJM control area, they are referred to as prelmnary capacty peak loads

6 The method used to estmate a customer s prelmnary peak load depends on the type of meterng equpment nstalled at the customer s locaton that s used for bllng. Customer bllng data are classfed n one of three ways: nterval-metered customers who have hourly metered usage data, non-nterval metered customers who only have monthly energy readngs, and non-nterval metered customers who have maxmum demand readngs and monthly energy readngs. For the nterval-metered customers, actual demand readngs concdent wth the PJM peak hours are used to determne the customer s prelmnary peak load. For the non-nterval-metered customers wth monthly energy readngs only, profle estmates by customer classes are developed usng load research samples for whch hourly data are avalable. For the customers who have demand data, concdence factors are calculated for the correspondng hours of the PJM peaks. The determnaton of the customer peak load depends on the customer s assgned profle class. A profle class s a groupng of customers wth a smlar energy usage pattern. Note that an nterval-meter customer s not grouped wth other customers because of the avalablty of actual hourly data. Profle classes for non-nterval-meter customers are establshed accordng to the Company s tarff rate classes, bllng data, and avalable load research data. The dervaton of the prelmnary customer peak loads occurs n several steps. These steps are as follows: 1. For each customer, retreve fve hourly loads for the hours correspondng to the fve hghest peak demands for the PJM control area. (For nterval-meter customers, the loads are the customer s hourly-metered loads; for non-nterval meter customers wth no demand data, the loads are the hourly profle class loads; and for non-nterval meter customer wth demand data, the loads are estmated usng the customer maxmum demand for the summer bllng cycles and the concdent factors for the fve PJM peaks.) 2. Add back any load reductons stemmng from Actve Load Management ntatves. 3. Calculate the average demand for each customer. (For nterval-metered customers, calculate the average of the fve demands for each customer; for non-nterval metered customers wth no demand data, calculate the average of the fve profle class demands tmes the usage factor; and for non-nterval customers wth demand data, calculate the average of the summer maxmum demand tmes the fve correspondng concdent factors.) 4. Calculate the Prelmnary Capacty Peak Load for each customer by multplyng the customer s average demand by the assocated loss adjustment factors

7 The end result of ths procedure s a set of hourly estmated peak loads adjusted for system losses. The framework of calculaton steps s presented below. Hourly Metered Customers Data requrements 1. Hourly demands for each customer concdent wth the hghest fve PJM peak hours (KW ). 2. Loss adjustment factors by rate class (loss_factor). 3. Reducton estmates for any customer partcpatng n an Actve Load Management Program (ALM ). Processes 1. Obtan the fve hourly customer metered loads concdent wth the hghest fve PJM weather-adjusted, unrestrcted peak loads for each hourly-metered customer If ALM was n effect at the tme of the fve PJM peak hours, ALM estmates are added to the customer s metered load to obtan an unrestrcted load for each ALM customer. 3. Calculate the average of the fve unrestrcted concdent demands for each customer. 4. Apply the loss adjustment factors by rate level. 2 CPLC n 1 = n ( KW + ALM ) ( loss _ factor) Pr e lm = 1 Where n = fve hghest PJM peak hours (on separate days). Example Calculaton for an Hourly Metered Customer Rank Day/hour KW ALM 1 7/06 16: /19 14: /28 16: /23 17: /08 17: Loss adjustment factor = 1.02 CPLC = (( (90+40) )/5)*1.02 = KW Profle Customers wth No Demand Meters Data requrements 1 If a customer s mssng data for the hghest fve PJM peak hours, proxy data are substtuted for the customer. If proxy data are not avalable, the PLC wll be calculated for all the PJM peak hours where data are avalable. 2 Loss adjustment factors are avalable on the Company webstes

8 1. Hourly demands (KW ) for each profle class concdent wth the hghest fve PJM peak hours. 2. Loss adjustment factors (loss_factor) by profle class. 3. Average daly summer usage for the customer (SUM_KWH_DAY C ) and average daly summer usage for class profle (SUM_KWH_DAY P ). 3 Processes 1. Obtan the fve loads concdent wth the fve hghest PJM unrestrcted peak loads for each profle class. 2. Calculate the average of the fve demands for each profle class. 3. Calculate the average daly usage for the summer months for each profle class. 4. Calculate the average daly usage for the summer months for each monthly-metered customer. 5. Apply the rato of the customer s summer average daly usage to the profle summer average daly usage. 6. Apply the loss adjustment factors by profle class. CPLC Pr e lm 1 = n n ( KW ) = 1 SUM _ KWH _ DAY SUM _ KWH _ DAY C P loss _ factor Where c = customer, p = profle class, and n = fve hghest PJM peak hours (on separate days). Example Calculaton for a Profle Customer Rank Day KW 1 7/06 16: /19 14: /28 16: /23 17: /08 17: Loss factor 1.02 Profle KWH/Day = 40 Customer Profle KWH/Day = 20 TPLC=( )/5*(20/40)(1.02)=1.16 Profle Customer wth Demand Meters Data requrements 3 The average daly summer usage values for ndvdual customers are calculated usng the energy usage for the summer bllng months dvded by the total number of days durng these summer bllng months. The summer bllng months are defned as the bllng months of June through September. For the profle average usage calculaton, the summer perod s defned as June 1 through September

9 1. Customer maxmum bllng demand for the summer months (Max_KW ). 2. Summer usage for the customer (SUM_KWH C ) and the number of days durng the summer bllng month for the customer (DAYS C ). 3. Loss adjustment factors by profle class. Process 1. Obtan the maxmum bllng demand for each customer, the energy usage (SUM_KWH C ), and the number of days (DAYS C ) for the bllng months of June through September. 2. Calculate the customers load factor based on the maxmum bllng demand for the customer and the summer usage. ( Max _ KW 24) Load _ Factor ( SUM _ KWH / DAY ) / = 3. Calculate the concdent factor for the ndvdual customer usng the customer s load factor based on ther bllng demand, where: 4 Conc _ factor 1 exp α Load _ factor = 4. Calculate the PJM concdent demand usng the concdent factor and the customer s maxmum summer monthly bllng demand. 5. Apply the loss adjustment factors. CPLC n 1 = n ( Max _ KW Conc _ factor ) ( loss _ factor ) Pr e lm = 1 Where n = fve hghest PJM peak hours (on separate days) and = customer.. Example Calculaton for Profle Customers wth Demand Meters Max_KW = 20 SUM_KWH = 33,600 DAYS = 100 ( 20 24) Load _ Fac = (33,600 /100) / = 4 Appendx 2 for the development of concdence factors

10 Rank Day/Hour Conc_factor KW 1 7/06 16: /19 14: /28 16: /23 17: /08 17: Loss factor = 1.03 CPLC=[(20*.645)+(20*.659)+(20*.645)+(20*.658)+(20*.658)]/5*(1.03)= KW 2.2 Reconclng Prelmnary Capacty Peak Loads to the Company Zonal Capacty Peak Allocaton Ths secton descrbes the process of scalng each customer s prelmnary capacty peak loads, derved n the prevous secton, to the Company unrestrcted, weather-adjusted zonal capacty peak allocaton. The result s a fnal Peak Load Contrbuton for each customer n the zone. The process conssts of steps descrbed below. Data requrements 1. The Company s zonal share of the PJM unrestrcted peak allocaton (CPLC PHI zone ). Ths value wll be provded by PJM based on the calculatons developed from the Load Analyss Subcommttee (LAS). Assume CPLC PHI zone = for ths example. 2. Prelmnary unrestrcted hourly loads CPLC Prelm for each customer from the steps above. Process 1. Determne the sum of all customers prelmnary unrestrcted hourly loads (SUM_CPLC Prelm ). 2. Calculate the scalng factor by dvdng the Company s zonal share of the PJM unrestrcted peak allocaton by the sum of all customers prelmnary CPLCs. 3. Multply the scalng factor by each customer s prelmnary CPLC to determne each customer s fnal share of the total PJM zonal oblgaton CPLC Fnal. Where = customer. CPLC Fnal CPLC Zone = SUM _ CPLC Pr e lm CPLC Pr e lm Example Showng Customers Share of the PJM Zonal Capacty Oblgaton Customer Class PLC Prelm Scalng Factor PLC Fnal Interval Metered Profle Profle wth Demand Total:

11 2.3 New Customers A default value usng class average data wll be assgned untl actual summer peak usage nformaton for the customer becomes avalable and an actual CPLC s calculated for the followng year. The profle class default values are updated annually and posted on the Suppler Support webste. 3 Supplers Capacty Peak Load Contrbuton The daly Suppler Capacty Peak Load Contrbuton (Suppler Capacty PLC) s the sum of the all customers Fnal Capacty PLCs served by each Suppler. For example, assume that Suppler A serves the two customers n the example above. Then Suppler A s Capacty PLC would be KW (sum of Fnal Capacty PLC of KW and 1.14 KW). The reportng of Suppler Capacty PLC must occur no later than 36 hours n advance of the operatng day, or as specfed by PJM gudelnes. The Company wll submt the Suppler Capacty PLCs to PJM n accordance wth PJM s publshed submsson gudelnes. In the event that the Company s unable to submt Capacty PLC data accordng to the allowable PJM gudelnes for a gven day, the Company assumes that PJM wll use the most recent values avalable (those prevously submtted by the Company). 4 Informaton Coordnaton Responsbltes 4.1 Suppler The Suppler wll schedule ts nstalled capacty resources wth PJM n accordance wth PJM requrements. 4.2 PHI The Company wll compute and report to PJM the Suppler s Capacty Peak Load Contrbuton on a tmetable defned by PJM. The Company wll cooperate wth reasonable audt requests by Supplers. The Suppler shall bear the cost of the audt. The scope of the audt and the terms of payment are to be agreed upon by the Company and the Suppler pror to commencement of the audt. The Company wll address audt requests on a frst come, frst served bass. The suppler or schedulng coordnator shall be subject to Capacty Peak Load Contrbuton adjustments for any errors n arthmetc, computaton, or other errors. If adjustments occur to a suppler s Capacty Peak Load Contrbuton, then the Partes nvolved wll agree on the

12 adjustment. The Company wll then forward the nformaton to PJM. PJM wll place the fnal adjustments on the approprate Party s bll. Dsputes shall be resolved through the PJM Dspute Resoluton process. III SUPPLIER NETWORK SERVICE PEAK LOAD CONTRIBUTION 1 Introducton A Network Servce Peak Load Contrbuton (Transmsson PLC) s calculated for each customer n the Company zone. Under the Open Access Transmsson Tarff (OATT) submtted to FERC on September 24, 1998, the Transmsson PLC s based on the demand at the tme of the Company s metered zone peak load durng the twelve months ended October 31 of the pror calendar year. In accordance wth the PJM rules and procedures, the Company wll calculate a Transmsson PLC tcket for each customer on an annual bass. The Transmsson PLC value for a customer represents the customer s average load rato share of the Zone s metered peak loads. The Transmsson PLC value s determned from (1) the customer s load concdent wth the fve hghest metered peak loads of the Zone, and (2) the metered peak load of the Zone. The customer Transmsson PLC wll be updated n accordance wth PJM rules and procedures, wth supportng data posted on the Company s web ste. The Company wll also calculate and report to PJM the Suppler Network Servce Peak Load Contrbuton (Suppler Transmsson PLC), whch s the sum of customer Transmsson PLCs for each suppler. Ths secton descrbes the methods and calculatons used to derve the customer and Suppler Network PLCs. The sample calculatons presented are based on a Suppler wth three customers. 2 Annual Customer Network Servce Peak Load Contrbuton The dervaton of customer Network Servce Peak Load Contrbutons (Transmsson PLC or TPLC) conssts of two procedures: Determnng the prelmnary customer transmsson peak loads. Reconclng customer transmsson peak loads to the Company zonal peak load. 2.1 Determnng Prelmnary Customer Network Servce Peak Loads For ths procedure, the Company wll derve hourly estmated transmsson peak loads for each customer accordng to the customers meterng type and profle class. Snce the sum of the customers estmated transmsson peak loads can devate from the Company s network zonal peak load, they are referred to as prelmnary transmsson peak loads

13 The method used to estmate a customer s prelmnary transmsson peak load depends on the type of meterng equpment used n collectng customer bllng data. Customer bllng data can be classfed n one of three ways: nterval-metered customers who have hourly metered usage data, non-nterval metered customers who only have monthly energy readngs, and non-nterval metered customers who have maxmum demand readngs and monthly energy readngs. For the nterval-metered customers, actual demand readngs concdent wth the Company peak hours are used to determne the customer s prelmnary transmsson peak load. For the nonnterval-metered customers wth monthly energy readngs only, profle estmates by customer classes are developed usng load research samples for whch hourly data are avalable. For the customers who have maxmum demand data, concdence factors are developed for the correspondng hours of the Company peaks. The calculaton of the customer s transmsson peak load s dependent on the customer s assgned profle class. A profle class s a groupng of customers wth a smlar energy usage pattern. Note that an nterval-meter customer s not grouped wth other customers because of the avalablty of actual hourly data. Profle classes for non-nterval-meter customers are establshed accordng to the Company s tarff rate classes, bllng data, and avalable load research results. The dervaton of the prelmnary customer transmsson peak loads occurs n several steps. These steps are as follows: 1. For each customer, retreve fve hourly loads for the hour correspondng to the fve hghest peak demands for the Company zone. 5 (For nterval-meter customers, the loads are the customer hourly-metered loads; for non-nterval meter customers wth no demand data, the loads are the hourly profled klowatt-hour loads; and for non-nterval meter customer wth demand data, the loads are calculated usng the customer s maxmum demand for the summer bllng cycles and the correspondng concdent factors for the fve daly Company peaks. 2. Calculate the average demand for each customer. (For nterval-metered customers, calculate the average of the fve demands for each customer; for non-nterval metered customers wth no demand data, calculate the average of the fve profle class demands tmes the usage factor; and for non-nterval customers wth demand data, calculate the average of the summer maxmum demand tmes the fve correspondng concdent factors.) 3. Calculate the Prelmnary Transmsson Peak Load for each customer by multplyng the customer s average demand by the assocated loss factors. 5 For wholesale, customers retreve the hourly load for the hour correspondng to the hghest peak demand for the Zone

14 The end result of ths procedure s a set of hourly transmsson peak loads adjusted for system losses. The framework of calculaton steps s presented below. Hourly Metered Customers Data requrements 1. Hourly demands for each customer concdent wth the hghest fve Company peak hours (KW). 2. Loss adjustment factors by rate class (loss_factor). Processes 1. Obtan the fve hourly customer metered loads concdent wth the fve hghest Company s metered peak loads for each hourly-metered customer Calculate the average of the fve concdent demands for each customer. 3. Apply the loss adjustment factors by rate level. TPLC 1 n Pr e lm = ( KW )* n = 1 LossFactor Where n = fve hghest Company peak hours (on separate days). Example Calculaton for an Hourly Metered Customer Day/hour KW 7/06 17: /19 16: /23 17: /13 17: /30 17: Loss factor 1.02 TPLC=( )/5*(1.02) = Profle Customers wth Non-Demand Meters Data requrements 1. Hourly demands (KW ) for each profle class concdent wth the hghest fve Company metered peak hours. 2. Loss adjustment factors (loss_factor) by profle class. 3. Average daly summer usage for the customer (SUM_KWH_DAY C ) and average daly summer usage for class profle (SUM_KWH_DAY P ). 7 6 If a customer s mssng data for the hghest fve Company zone peak hours, proxy data are substtuted for the customer. If proxy data are not avalable, the Transmsson PLC wll be calculated for the Company zone peak hours where data are avalable

15 Processes 1. Obtan the fve loads concdent wth the fve hghest Company metered peak loads for each profle class. 2. Calculate the average of the fve demands for each profle class. 3. Calculate the average daly usage for the summer months for each profle class. 4. Calculate the average daly usage for the summer months for each monthly-metered customer. 5. Apply the rato of the customer summer average daly usage to the profle summer average daly usage. 6. Apply the loss factors by profle class. TPLC Pr e lm 1 = n n ( KW ) = 1 SUM _ KWH _ DAY SUM _ KWH _ DAY C P loss _ factor Where c = customer, p = profle class, n = fve hghest Company peak hours (on separate days). Example Calculaton for a Profle Customer Day/hour KW 7/06 17: /19 16: /23 17: /13 17: /30 17: Loss factor 1.02 Profle KWH/Day = 40 Customer Profle KWH/Day = 20 TPLC=( )/5*(20/40)(1.02)=1.12 Profle Customer wth Demand Meters Data requrements 1. Customer maxmum bllng demand data for the summer months (Max_KW). 8 7 The average daly summer usage values for ndvdual customers are calculated usng the usage for the summer bllng months dvded by the total number of days durng these summer bllng months. The summer bllng months are defned as the bllng months of June through September. For the profle average usage calculaton, the summer perod s defned as June 1 through September If customers are mssng maxmum demand readngs, the calculatons wll be made usng all the remanng KW readngs that are avalable. If the customer has no readngs, class average data wll be used

16 2. Summer usage for the customer (SUM_KWH C ) and the number of days durng the summer bllng month for the customer (DAYS C ). 3. Loss factors by profle class. Process 1. Obtan the maxmum summer bllng demand, energy usage (SUM_KWH), and number of bllng days (DAYS) for the months of June through September for each customer. 2. Calculate the customers load factor based on the maxmum bllng demand for the customer and the summer usage. ( Max _ KW 24) Load _ Factor ( SUM _ KWH / DAYS) / = 3. Calculate the concdent factor for the ndvdual customer usng the customer s load factor based on ther bllng demand (ether on-peak or monthly maxmum demand), where: 9 α Load _ factor Conc _ factor = 1 exp 4. Calculate the PJM concdent demand usng the concdent factor and the customer s correspondng monthly bllng demand. 5. Apply the loss adjustment factors. TPLC n 1 = n ( Max _ KW Conc _ factor ) ( loss _ factor ) Pr e lm = 1 Where n = fve hghest PJM peak hours (on separate days) and s for the customer. Example Calculaton for Profle Customers wth Demand Meters Max_KW = 20 SUM_KWH = 33,600 DAYS = 100 ( 20 24) Load _ Fac = (33,600 /100) / = 9 See Appendx 2 for development of concdent factors

17 Rank Day/Hour Conc_factor KW 1 7/06 17: /19 16: /23 17: /13 17: /30 17: Loss factor = 1.03 TPLC=[(20*.658)+(20*.700)+(20*.658)+(20*.658)+(20*.658)]/5*(1.03)= KW 2.2 Reconclng Prelmnary Transmsson Peak Loads to the Company Zonal Peak Load Ths secton descrbes the process of scalng each customer s prelmnary transmsson peak loads, derved n the prevous secton, to the Company metered peak load. The result s a fnal Transmsson Peak Load Contrbuton (TPLC) for each customer n the Company zone. The process conssts of steps descrbed below. Data requrements 1. The Company metered peak load (TPLC PHI ). Assume that the TPLC PHI = for ths example. 2. The prelmnary transmsson hourly loads (TPLC Prelm ) for each customer from the steps above. Process 1. Determne the sum of all customers prelmnary transmsson hourly loads (SUM_TPLC Prelm ). 2. Determne the sum of all the nterval metered customers prelmnary transmsson hourly load (SUM_TPLC ntv-mtr ). 3. Determne the sum of all the non-nterval metered customers prelmnary network hourly load (SUM_TPLC non-ntv-mtr ). 4. Calculate the unaccounted for energy (UFE) by subtractng from the Company metered peak load, the sum of all customers prelmnary transmsson hourly loads. 5. For the nterval-metered customers, 5% of the UFE s allocated to each customer s prelmnary transmsson hourly loads based on the customer s pro rata share of the sum of all customers prelmnary transmsson hourly loads. Ths new value s the customers transmsson peak load contrbuton (TPLC Fnal ). TPLC Fnal = TPLC Pr e lm TPLC Pr + SUM _ TPLC e lm Pr el Intv mtr * UFE* For the non-nterval-metered customers, 95% of the UFE s allocated to each customer s prelmnary transmsson hourly loads based on the customer s pro rata share of the sum of all customers prelmnary transmsson hourly loads. Ths new value s the customers transmsson peak load contrbuton (TPLC Fnal )

18 TPLC Fnal = TPLC Pr e lm + SUM TPLC _ TPLC Pr e lm Pr el non Intv mtr * UFE* 0.95 Example Showng Customers Share of the Company s Transmsson Oblgaton 1. Assume the metered Company peak s KW. The UFE s equal to = 1.99 KW. 2. The total nterval metered load s and the total profle load s ( ). Customer TPLC Prelm Adjustment, Kw TPLC Fnal Interval Metered Profled - Energy Only Profled Demand Total: New Customers A default value usng class average data wll be assgned untl actual summer peak usage nformaton for the customer becomes avalable and an actual TPLC s calculated for the followng year. The profle class default values are updated annually and posted on the Company s webstes. 3 Supplers Network Servce Peak Load Contrbuton The Suppler Network Servce Peak Load Contrbuton (Suppler Transmsson PLC) s the sum of the Customer TPLCs for that Suppler. For example, gven the Customer TPLCs of KW, 1.26 KW and KW calculated above, the TPLC for the Suppler s KW. Suppler Transmsson PLCs wll be reported as specfed n PJM gudelnes. The Company wll submt the Suppler Transmsson PLCs to PJM 36 hours n advance of the settlement day n accordance wth PJM s publshed submsson gudelnes. In the event that the Company s unable to submt Suppler Transmsson PLC data accordng to the allowable PJM gudelnes for a gven day, the Company assumes that PJM wll use the most recent values avalable (those prevously submtted by the Company)

19 4 Informaton Coordnaton Responsbltes 4.1 Suppler The Company wll compute and make avalable the suppler s transmsson peak load contrbuton n accordance wth PJM requrements. 4.2 PHI The Company wll compute and report to PJM the Suppler s daly Transmsson Peak Load Contrbuton on a tmetable defned by PJM. The Company wll cooperate wth reasonable audt requests by Supplers. The Suppler shall bear the cost of the audt. The scope of the audt and the terms of payment are to be agreed upon by the Company and the Suppler pror to commencement of the audt. The Company wll address audt requests on a frst come, frst served bass. The suppler or schedulng coordnator shall be subject to Transmsson Peak Load Contrbuton adjustments for any errors n arthmetc, computaton, or other errors. If adjustments occur to a suppler s Transmsson Peak Load Contrbuton, then the Partes nvolved wll agree on the adjustment. The Company wll then forward the nformaton to PJM. PJM wll place the fnal adjustments on the approprate Party s bll. Dsputes shall be resolved through the PJM Dspute Resoluton process. IV SUPPLIER HOURLY ENERGY OBLIGATION 1 Introducton PJM determnes the prce of energy n two separate markets, called the Two-Settlement market. The Two-Settlement market conssts of the followng two markets: Day-ahead Energy Market The day-ahead energy market s a forward market n whch hourly clearng prces are calculated for each hour of the next operatng day based on generaton offers, demand bds and blateral transacton schedules submtted nto the day-ahead market. The day-ahead market allows partcpants to purchase and sell energy at bndng day-ahead prces. Real-tme Market or Real-tme Balancng Market The balancng market s the realtme energy market n whch hourly clearng prces are determned by the actual system operatons securty-constraned economc dspatch. Supplers wll pay balancng prces (at the real tme prce) for any demand that exceeds ther day-ahead scheduled quanttes and wll receve revenues (at the real tme prce) for demand devatons below ther scheduled quanttes

20 Partcpaton by supplers n the Day-ahead Energy Market s voluntary and the suppler s responsble for submttng the day-ahead demand forecast for ther customers to PJM. Partcpaton n the Real-tme market s mandatory and the Company s responsble for calculatng each suppler s real-tme hourly load responsblty on a day-after bass and reportng the nformaton to PJM. The Company wll also calculate a subsequent suppler s real-tme hourly load responsblty or fnal settlement for the Real-tme Market to account for actual usage data obtaned followng the close of the meter-readng cycles. The dfference between the day-after and fnal settlement, the suppler hourly load adjustment, wll be reported to PJM wthn two months after the month subject to adjustment, or as requred by PJM gudelnes. 2 Day-ahead Energy Market As part of PJM s Day-ahead Energy Market, the suppler s responsble for forecastng ts customer s Hourly Energy Oblgaton (HEO) and submttng the data to PJM n accordance wth PJM s gudelnes, generally by noon on the day before the actual operatng day. 3 Real Tme Balancng Market 3.1 Day-after Estmates As part of PJM s hourly energy nterchange settlement process, the Company wll submt to PJM the hourly energy usage values for each suppler on a day-after bass. Each of the hourly usage values s the aggregate usage for the suppler s customers estmated for the prevous day usng nformaton avalable to the Company the day-after. The nformaton used ncludes actual and hstorcal customer nterval meter readngs, hstorcal load profle data, actual weather condtons, and the Company Zone Load for the prevous day. The aggregate usage for all the supplers customers s referred to as the Suppler Hourly Energy Oblgaton (Suppler HEO), and represents the Suppler s hourly load responsblty for PJM accountng purposes. PJM wll use the Suppler HEO quanttes to perform an ntal balancng settlement or day-after settlement for the Real-tme Market. The Day-after Settlement entals computng the dfference between the Suppler HEO results of the Day-ahead Energy Market (submtted by the suppler) and the day-after results (submtted by the Company). PJM determnes suppler charges or credts based on the hourly usage dfferences and hourly Real-tme Prces. These charges or credts wll be aggregated nto a monthly suppler energy-nterchange bll. The dervaton of the Supplers HEO conssts of two processes. Determne the prelmnary Suppler HEO for each hour. Reconcle Suppler HEO to the Company Zone Load

21 The sample calculatons presented n ths secton are based on a settlement for two supplers that each serve three customers. The hours endng 1:00 through 5:00 are presented for the settlement day Determnng Day-After Hourly Energy Oblgaton for Real-tme Market Ths secton descrbes the methods and calculatons used to derve the Day-after Supplers Hourly Energy Oblgaton (HEO) or hourly energy load for the Real-tme Energy Market. The Company wll estmate hourly energy oblgatons for each customer accordng to the customer s meterng type. For the Pepco zone, a proxy-day s selected for the class average profle data. The proxy day process s used for nterval metered customers that do not have data for the settlement day. For the ACE and DPL zones, a regresson model of hourly load as a functon of weather varables s used to develop the hourly loads for the profled customers. Refer to Appendx 1: Load Proflng Methodology for more nformaton. The dervaton of the estmated hourly energy load occurs n several steps. The steps are as follows: 1. The prelmnary hourly Company Zone Load 10 and actual weather data for the prevous day and day types are nputs to a proxy day process that selects a hstorcal day from whch to retreve hourly data to use for monthly-read nterval-metered customers. 2. Usng the weather data for the prevous day, calculated the hourly loads for the profled classes for the ACE and DPL zones. For the Pepco zone, the hourly loads for the profled classes from the proxy day selected n step one are used for the profled classes. 3. Hstorcal customer load data are retreved for the proxy day selected n step one for all monthly-read nterval-metered customers. Avalable actual load data for the day of nterest are retreved for customers wth daly-read meters. If data are not avalable for the day of nterest, hstorcal nformaton s used for the daly-read customers. 4. For each profle customer, adjust the class profle load assgned to the customer by the rato of the customer s usage pror to or coverng the settlement perod to the profle class usage over the same perod. 5. Adjust customer loads by the approprate loss factor. 6. Adjust the customer loads to ensure that they sum to the hourly Company Zone Load. The adjustment s based on the type of meterng equpment used for bllng at the 10 The prelmnary Company zones loads do not nclude margnal losses assgned by PJM. Prelmnary suppler HOEs are trued-up to the zone load total, ncludng margnal losses pror to submsson to PJM

22 customer s locaton. Ths adjustment s assgned on a zone-specfc bass accordng to the arrangements agreed-upon by the Company and the supplers. 7. Sum ndvdual customer loads for each suppler. 8. Obtan the fnal Company zone load data from PJM. 9. Adjust the prelmnary suppler HEO such that the sum of the suppler HEO equals the fnal zone load publshed by PJM. The adjustment s based on the suppler s pro rata share of the prelmnary zone load total. I. Data Requrements 1. Prelmnary Hourly Company Zone Load for day of nterest. 2. Actual weather data for day of nterest. 3. Hstorcal Company zone load and weather data for potental proxy days. 4. Hstorcal nterval-metered and profle customer load data. 5. Actual nterval-metered data for daly-read nterval metered customers. 6. Fnal Company zone loads from PJM. II. Procedures for Hourly Metered Accounts 1. Retreve hstorcal customer load data for monthly-read nterval-metered accounts (Customer 2) for the proxy day that was selected n the proxy day analyss. 2. Retreve actual customer load data for daly-read nterval-metered accounts (Customer 1) for the day of nterest. Interval Customer Load (Hours 1:00-5:00) Customer KW 1 KW 2 KW 3 KW 4 KW Sum_ Loss adjustment factor for customer 1 and for customer Apply approprate loss adjustment factor to each customer s load data. HEO Interval h = KW h ( loss _ factor ) Where h represents hours one through twenty-four

23 Estmated Load for Interval Metered Customers (Hours 1:00-5:00) Customer KW 1 KW 2 KW 3 KW 4 KW Sum If a monthly-metered customer s hstorc nterval data are not avalable for the proxy day, the customer s load for the day of nterest s zero for each hour. If a daly-metered customer s actual nterval data are not avalable for the day of nterest, the proxy day data are used. If the proxy data are also not avalable for the customer, the customer s load for the day of nterest s zero for each hour. All zero values are updated n the 60-day settlement where the actual meter readngs are avalable. III. Procedures for Profle Customers 1. Retreve class profle data for the settlement perod. Class Profle Load for Settlement Day (Hours 1:00-5:00) Profle KW 1 KW 2 KW 3 KW 4 KW Loss adjustment factor s for all profle classes. 2. Calculate the Customer s Usage Factor: The customer s usage factor (Usage C ) s used to scale the profle class load whch results n an hourly load curve for each customer. The customer usage factor s calculated by dvdng the customer s bllng data (KWH C ) for the perod by the energy from the class profle class data (KWH P ) for the same perod. The customer usage factor s estmated as follows: 1. Retreve the customer s energy consumpton (KWH C ) for the readng perod that ncludes or precedes the day of nterest. 2. Retreve profle class data (KW P ) for the same perod as the customers readng perod and calculate the energy (KWH P ) for the same perod as the customer s bllng energy. 3. Create the customer usage factor (Usage C ) by dvdng the customer s energy consumpton by the profle KWH P for the same perod. The energy for the class average profle s generated after algnng the profle data perod wth the customer readng perod

24 Usage C = Bll _ Stop Bll _ Start KWH KWH C P Where Bll_Start s the customer bll hstory record bll start date, Bll_Stop s the customer bll hstory record bll stop date. 3. Calculate the prelmnary HEO for the profle class. HEO P h = C ( KW ) Usage ( loss _ factor ) h Where h represents hours one through twenty-four, C represents customer, and P represents profle. The resultng customer hourly energy oblgatons are shown below. Estmated Load for Profle Customers (Hours 1:00-5:00) Customer Profle Usage C KW 1 KW 2 KW 3 KW 4 KW Loss adjustment factor s for all profle classes. The usage values are calculated for each customer usng hstorc bllng data and class profles. IV. Aggregaton of Loads by Suppler and Meterng Type The customer energy load results of the prevous secton wll be aggregated by suppler and meterng type (nterval and profle) and overall to determne the Prelmnary HEO for the Realtme Energy Market. Assume that customers one, three, and four are assocated wth Suppler A and customers two, fve and sx are assocated wth Suppler B. The resultng prelmnary hourly energy oblgatons are shown below by suppler and meterng type. Prelmnary HEO by Supplers and Meterng Type (Hours 1:00-5:00) Suppler Meter Type KW 1 KW 2 KW 3 KW 4 KW 5 A Interval B Interval Total Interval A Profle B Profle Total Profle Total_HEO Prelm

25 3.1.2 Scalng Hourly Energy Loads to the Prelmnary Company Zonal Energy Load Ths secton descrbes the process of scalng each suppler s prelmnary estmate of hourly energy to the prelmnary Company Zonal Energy Load. The Total Unaccounted for Energy (UFE) for each hour s determned by calculatng the dfference between the Company Zone Load and the Prelmnary HEO. The Unaccounted for Energy can be ether postve or negatve and s a result of samplng error, meterng error and mssng data. Ths adjustment s assgned on a zone-specfc bass accordng to the arrangements agreed-upon by the Company and the supplers. In the PEPCO zone, the Company apples 95% of the UFE to the customers whose loads are estmated usng profle data and 5% of the total UFE to the customers whose loads are estmated usng nterval data. In the ACE and DPL zones, the Company apples 100% of the UFE to the customers whose loads are estmated usng profle data. The scalng process for the PEPCO zone conssts of the steps descrbed below. 1. Calculate the Total UFE, the Total UFE for nterval customers (Total_Interval_UFE) and the Total UFE for profle customers (Total_Profle_UFE). The Total UFE s the dfference between the Prelmnary PEPCO Zonal Energy Load (Prel_HEO Pepco ) and the sum of all the supplers prelmnary HEO (Total_HEO Prelm ). The Total UFE for nterval customers s the Total UFE tmes 0.05 and the Total UFE for profle customers s the Total UFE tmes Total Total Total _ UFE = _ Interval _ UFE _ Pr ofle _ UFE ( Pr el _ HEO Total _ HEO ) Pepco = Total _ UFE 0.05 = Total _ UFE 0.95 Pr e lm Prelmnary Zone Load and Total Unaccounted for Energy (Hours 1:00-5:00) KW 1 KW 2 KW 3 KW 4 KW 5 Prel_HEO Pepco Total_UFE Total_Interval_UFE Total_Profle_UFE Calculate each suppler s share of the nterval UFE by multplyng the total nterval UFE by the rato of customers nterval load (Interval_HEO ) to the total nterval load for all customers (Total_Interval_HEO). Calculate each suppler s share of the profle UFE by multplyng the total profle UFE by the rato of customers profle load (Profle_HEO ) to the total profle load for all customers (Total_Profle_HEO)

26 Interval _ UFE Pr ofle _ UFE Where = suppler. Interval _ HEO = Total _ Interval _ HEO Pr ofle _ HEO = Total _ Pr ofle _ HEO Total _ Interval _ UFE Total _ Pr ofle _ UFE Supplers share of UFE by Meterng Type (Hours 1:00-5:00) Suppler Meter Type KW 1 KW 2 KW 3 KW 4 KW 5 A Interval A Profle Total Suppler A B Interval B Profle Total Suppler B Calculate each suppler hourly energy oblgaton (HEO Fnal ) as the sum of the suppler s nterval hourly energy oblgaton, nterval UFE, profle hourly energy oblgaton and profle UFE. HEO Fnal = Interval _ UFE + Interval _ HEO + Pr ofle _ UFE + Pr ofle _ HEO Prelmnary Estmate of HEO by Supplers (Hours 1:00-5:00) KW 1 KW 2 KW 3 KW 4 KW 5 Suppler A Suppler B True-up to the Fnal Company Zone Load as Determned by PJM On a daly bass, the fnal Company zone load s avalable from PJM. Ths nformaton s avalable at approxmately 3:15 PM on Mondays and the frst busness day after a PJM holday and at 12:15 PM on Tuesday through Frday. Ths s the fnal Company zone load as determned by PJM. Due to PJM deadlnes and the amount of processng tme nvolve to estmate supplers prelmnary HEO as descrbed above, an adjustment wll be made to ensure that the sum of the supplers HEO equals the fnal Company zone load. Ths fnal adjustment s made to the prelmnary suppler HEO on a pro rata bass pror to submttng the loads to PJM. Ths process s descrbed below. 1 Obtan the fnal Company Zone loads from PJM (Fnal_HEO pepco ) and compare to the prelmnary Company Zone load total. Calculate an hourly adjustment factor by dvdng the Fnal_HEO Pepco by the Prel_HEO Pepco:

27 KW 1 KW 2 KW 3 KW 4 KW 5 Fnal_HEO Pepco Prel_HEO Pepco Adjust_Factor Adjust each suppler s prelmnary HEO by the hourly adjustment factor. Compare the sum of the adjusted suppler s HEO wth the Fnal_HEO Pepco : Frst Adjustment KW 1 KW 2 KW 3 KW 4 KW 5 Suppler A Suppler B Total Dfference Any dfferences are added back predesgnated suppler 11 Suppler B n ths example: Fnal Estmated HEO by Supplers (Hours 1:00-5:00) Fnal KW 1 KW 2 KW 3 KW 4 KW 5 Suppler A Suppler B Total Market Adjustments The second phase of the PJM energy nterchange Real-tme Settlement process occurs after all actual monthly energy usage data has been processed for the day n queston. The Company wll estmate the hourly energy oblgatons for each suppler usng avalable actual customer bllng data for the day of nterest. The Company wll then calculate the hourly dfferences between the orgnal Suppler HEO (estmated day-after) and the updated Suppler HEO for all of the supplers. These hourly klowatt-hour dfferences wll be reported to PJM wthn a perod of tme suffcent to meet PJM bll adjustment accountng requrements. PJM wll use the adjusted Suppler HEO quanttes to perform a fnal balancng settlement for the Real-tme Market. The 11 Ths adjustment s usually made to the largest SOS/BGS suppler load for the zone

28 updated Suppler HEO wll employ the same processng steps used to derve the orgnal Suppler HEO, but wll use all avalable data collected subsequent to the orgnal calculaton. The dervaton of the Fnal Supplers HEO conssts of two processes. Determne the prelmnary Suppler HEO for each hour. Reconcle Suppler HEO to the Fnal Company Zone Load. The sample calculatons presented are based on a settlement for two supplers that each serve three customers. The hours endng 1:00 through 5:00 are presented for the settlement day Determnng Fnal Hourly Energy Oblgaton for Real-tme Market Ths secton descrbes the methods and calculatons used to derve the fnal adjustment to the Supplers Hourly Energy Oblgaton (HEO) for the Real-tme Energy Market after actual data are obtaned at the end of the full meter-readng cycle. The fnal HEO for an entre month s calculated two months after the end of the month of nterest. The Company wll estmate hourly energy oblgatons for each customer accordng to the customer s meterng type. For nterval-metered accounts the actual customer load data are used for the month of nterest. For the profle customers the profle class loads are adjusted by the customer s actual usage for the month of nterest. The dervaton of the estmated hourly energy load occurs n several steps. The steps are as follows: 1. Retreve actual customer load data and profle class data for the month of nterest. 2. For each profle customer, adjust the assgned profle class load for the customer by the customer s usage factor. The customer s usage factor s defned as the rato of the customer s actual usage to the profle class usage for the same perod. 3. Adjust customer loads by the approprate loss adjustment factor. 4. Sum ndvdual customer loads for each suppler. 5. Adjust the suppler s loads proportonally to ensure that they sum to the fnal Company zone hourly load. I. Data Requrements 1. Fnal Company Zone Load for the month of nterest. 2. Actual nterval-metered data for nterval metered customers for the month of nterest. 3. Actual usage data for profle customers. 4. Profle class hourly data for the month of nterest and for a perod of about forty-fve days after the month of nterest Refer to Appendx 1: Load Proflng Methodology