PJM Manual 14A: New Services Request Process Revision: 22 Effective Date: April 26, Prepared by Interconnection Planning Department

Transcription

1 PJM Manual 14A: New Services Request Prcess Revisin: 22 Effective Date: April 26, 2018 Prepared by Intercnnectin Planning Department PJM 2018

2 Table f Cntents Table f Cntents Table f Exhibits...7 Apprval...8 Current Revisin...9 Intrductin Abut This Manual Intended Audience References Sectin 1: Intercnnectin Prcess Overview Requirements fr Generating Units Intercnnectins with municipalities, c-peratives, r nn-pjm Transmissin Owner member distributin cmpanies Intercnnectin Prcedures fr FERC Jurisdictinal Facilities and Nn-FERC Jurisdictinal Facilities Merchant Transmissin Intercnnectin Facilities Initiating the Generatin and Transmissin Intercnnectin Planning Prcess Prject Management and Client Management Electing Capacity Resurce Status versus Energy Resurce Status PJM Membership Membership in NERC Reginal Cuncils The Intercnnectin Request Studies Changes t Existing r Prpsed Generatin Cnsent t Assignments Assignment prir t the final agreement Assignment after the final agreement and prir t cmmercial peratin Assignment after cmmercial peratin Small Generatin Intercnnectin Cnsideratins (20 MW r less) Distributed Generatin Demand Respnse Resurce Behind the Meter Generatin Crdinatin f studies between PJM and MISO Study f PJM Intercnnectin Request impacts n MISO transmissin Study f MISO Intercnnectin Request impact n PJM Transmissin Study f PJM Transmissin Service Request impacts n MISO transmissin Studies fr Lng Term Firm Transmissin Service Interim Deliverability Studies

3 Table f Cntents Interim Deliverability Studies assciated with prjects using reinfrcements utside f PJM fr PJM cnstraints Affected system studies fr PJM New Service Requests Nn-Queue Intercnnectin Service Agreements Serving Lad as a Generatr Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Generatin and Transmissin Intercnnectin Feasibility Study Agreement Executin and Analysis Purpse f the Generatin r Transmissin Intercnnectin Feasibility Study Agreement Intercnnectin Requests and PJM Queue Psitin Site Cntrl Merchant Transmissin Facilities Requests Attachment S Generatin and Transmissin Intercnnectin Feasibility Study Cst Respnsibility New Service Request deficiency reviews Changes t Existing Generatrs and Transmissin Facilities Generatin and Transmissin Intercnnectin Feasibility Study Analysis and Results Generatin and Transmissin Intercnnectin System Impact Study Agreement Executin and Analysis Impact Study Agreement and Cst System Impact Study Analysis and Schedule System Impact Study Results Generatin and Transmissin Intercnnectin Facilities Study Agreement Executin and Analysis Queue Pririty and final agreement issuance and determinatin f security requirements fr mving ut f sequence Generatin and Transmissin Intercnnectin Facilities Study Agreement Generatin and Transmissin Intercnnectin Facilities Study Cst Generatin and Transmissin Intercnnectin Facilities Study Results Types f Netwrk and Lcal Upgrades Transfer f Capacity Intercnnectin Rights Transfer f Capacity Intercnnectin Rights (CIRs) Wrk Papers...47 Sectin 3: Small Resurce Intercnnectin Prcess Small Resurces (20 MW r less) Pre-applicatin Prcess fr New Generatin Resurce Additins f 20 MW r Less r Additins t Existing Generatin Resurces Nt t Exceed 20 MW in Aggregated Maximum Facility Output

4 Table f Cntents Small Generatin Intercnnectin Queue Submittal Study Requirements and Cst Expedited and/r Cmbined Study Analysis Specific Prvisins fr Resurces f 10 MW r Less Specific Prvisins fr Resurces Greater than 10 MW up t 20 MW Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Intercnnectin Service Agreement Interim Intercnnectin Service Agreements Interim ISA vs. ISA with Interim Rights Security Requirements Agreement Milestnes Intercnnectin Cnstructin Service Agreement Optin t Build General Timeline Summary f General Cnditins Specific Prcess Flw and Timeline (See Timeline in Attachment A) PJM Manuals PJM Tariff Part VI (Intercnnectins with the Transmissin System) PJM Operating Agreement Whlesale Market Participant Agreement (WMPA) Other Agreements Statin Pwer Sectin 5: Additinal Generatr Requirements Behind the Meter Generatin BtMG Intercnnectin Requests BtMG Metering BtMG Effects n Market Operatins Nn-Retail BtMG Generatr Pwer Factr Requirements Applicatin f Pwer Factr Requirements t Increases f Existing Generatin Wind r Nn-Synchrnus Generatin Prjects Wind r Nn-Synchrnus Generatin Capacity Credit Rules Wind r Nn-Synchrnus Generatin Specific Technical Requirements Attachment A: PJM Generatin and Transmissin Intercnnectin Planning Prcess Flw Diagram Attachment A-1: PJM Generatin and Transmissin Intercnnectin Planning Prcess Flw Diagram

5 Table f Cntents Attachment A-2: PJM Generatin and Transmissin Intercnnectin Planning Prcess Flw Diagram Attachment B: PJM Request Cst Allcatin Prcedures B.1 Purpse B.2 Scpe B.2.1 Definitins...73 B.3 PJM Generatin and Transmissin Intercnnectin Cst Allcatin Methdlgies...74 B.3.1 Lad Flw Cst Allcatin Methd B.3.2 Shrt Circuit Cst Allcatin Methd...75 B.3.3 Cst Allcatin Methd fr Generatr and/r Generatr Step Up (GSU) Changes B.3.4 Generatin Prject Excess MW Capabilities B.3.5 Stability Cst Allcatin Methd Attachment C: PJM Generatin and Transmissin Intercnnectin Planning Team Rle Clarity Diagram...80 Attachment D: General Descriptin f Facilities Study Prcedure Intrductin General Guidelines Transmissin Owner Facilities Study Summary Transmissin Owner Facilities Study Results...83 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards E.1 Scpe E.2 Purpse E.3 Backgrund and Discussin E.4 General Applicatin Nte fr Transmissin System Intercnnectins E.5 Tariff / IEEE 1547 Definitin Crss-Reference E.6 Applicable Technical Requirements and Standards E.6.1 Applicatin Ntes E.7 Relevant Cdes and Standards Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards Scpe Purpse

6 Table f Cntents Backgrund and Discussin General Applicatin Nte fr Transmissin System Intercnnectins Tariff / IEEE 1547 Definitin Crss-Reference Applicable Technical Requirements and Standards Applicatin Ntes Relevant Cdes and Standards Attachment F: Generatin Intercnnectin Feasibility Study Data F.1 Scpe F.2 Data Requirements fr PJM RTEPP Feasibility Studies Attachment F-1: Feasibility Study Data Frm Attachment G: System Impact Study Data G.1 Scpe Attachment G-1: Dynamic Mdel Study Request Frm Attachment G-2: System Impact Study Data Frm Attachment H: Generatr Reactive Deficiency Mitigatin Prcess H.1 Scpe Annex 1: SCADA Requirements by Transmissin Owner Regin Revisin Histry

7 Table f Exhibits Table f Exhibits Exhibit 1: Tariff Attachment Decisin Exhibit 2: Types f Netwrk and Lcal Upgrades...45 Exhibit 3: Cmbined Study Target Date...52 Exhibit 4: Milestnes v. Cnstructin Prbability

8 Apprval Apprval Apprval Date: 04/25/2018 Effective Date: 04/26/2018 Dave Egan, Manager Intercnnectin Prjects 8

9 Current Revisin Current Revisin Revisin 22 (04/26/2018): Revised t add additinal clarity cncerning analyses perfrmed during varius stages f prject studies Sectin 2.1 f heading mdified Sectin revised Sectin 2.2 f heading mdified Sectin revised Sectin 2.3 f heading mdified Sectin f heading mdified Sectin f heading mdified Sectin revised Sectin B.3 f Attachment B revised t add clarity 9

10 Intrductin Intrductin Welcme t the New Services Request Prcess Manual. In this Sectin yu will find: A table f cntents An apprval page that lists the required apprvals and the revisin histry This Intrductin Sectins summarizing the guidelines, requirements and prcedures fr Generatin and Transmissin intercnnectin, including Develper actins and PJM actins. Attachments that include additinal supprting dcuments and tables. Abut This Manual This PJM Manual, New Services Request Prcess is ne f the PJM Manual 14 series family. This manual guides develpers f generatin and merchant transmissin prjects thrugh the planning up t the request fr facility cnstructin. Intended Audience The intended audience fr this PJM Manual includes the fllwing: Develpers f generatin and merchant transmissin facilities and their staffs interested in lcating facilities within PJM. Existing Generatin Owners planning increases t an existing generating resurce. PJM Transmissin Owners and ther PJM Members and their staffs. PJM staff. References The entire PJM Manual 14 series addresses issues that may be related t r f interest t the Intercnnectin Custmer. The reader f this manual is urged t review the ther manuals fr additinal material f interest. All PJM manuals can be fund in the library sectin n PJM s website. In additin, the reader is urged t als check PJM cmmittee pstings fr pssible draft revisins that may be awaiting psting under the Library/Manuals sectin f PJM.cm. 10

11 Sectin 1: Intercnnectin Prcess Overview Sectin 1: Intercnnectin Prcess Overview Entities requesting intercnnectin f a generating facility (including increases t the capacity f an existing generating unit r decmmissining f a generating unit) r requesting intercnnectin f a merchant transmissin facility within the PJM RTO must d s within PJM s defined intercnnectin prcess. This prcess ensures the successful, timely cmpletin f PJM s planning, facility cnstructin and peratinal and market infrastructure requirements. Fr the purpses f this Manual, the term Develper is used t encmpass any entity which bears respnsibility fr bulk pwer system upgrades, whether a third party seeking intercnnectin r an existing Transmissin Owner with respnsibility fr Baseline Upgrades r self-identified enhancements. Use the fllwing decisin tree t determine the apprpriate Tariff attachment t cmplete t submit a New Service Request. Exhibit 1: Tariff Attachment Decisin PJM Manuals ffer a set f guidelines t ensure successful intercnnectin and peratins within PJM. 11

12 Sectin 1: Intercnnectin Prcess Overview Manual Attachment A Intercnnectin Prcess Flw Diagram - prtrays in mre detail the pertinent planning steps frm the initial New Service Request up t the request fr facility cnstructin. The PJM Manual 14A cntent is cnsistent with and elabrates n the terms and cnditins fund in the surce PJM dcuments. The primary surce dcuments fr Manual 14A are the PJM Open Access Transmissin Tariff (Tariff) and the PJM Operating Agreement. Other applicable surce dcuments may include the PJM Transmissin Owners Agreement and the PJM Reliability Assurance Agreement. The surce dcuments remain the final authritative dcuments and these dcuments cntrl with regard t any incnsistencies between them and the PJM Manuals. 1.1 Requirements fr Generating Units Under the definitin f Generatin Capacity Resurce in the PJM Open Access Transmissin Tariff (Tariff) and Reliability Assurance Agreement (RAA), Capacity Intercnnectin Rights are awarded t a generatin unit. While sme technlgies, such a wind, slar, hydr, and cmbined cycle facilities may participate in the Capacity Market thrugh the aggregatin f multiple generating units (see, fr example, the Capacity market participatin requirements in PJM Manual 21), PJM must be able t mdel each machine that can participate as a generatr in its planning prcess. Mrever, in accrdance with the PJM Tariff, fr any Behind the Meter Generatin that desires t be designated, in whle r in part, as a Capacity Resurce r Energy Resurce, PJM must study and demnstrate that Behind the Meter Generatin qualify as such Behind the Meter Generatin. T allw PJM t study and demnstrate that Behind the Meter Generatin cannt inject pwer past the Pint f Intercnnectin, generatin that cntains bth: (1) Behind the Meter Generatin; and (2) generatin intercnnected r intercnnecting the transmissin system r FERC-jurisdictinal distributin system in the PJM regin must prvide PJM with all generatin grss capability. If a generating facility is t be subdivided between separate business entities behind a single Pint f Intercnnectin, each entity shall wn its wn revenue grade meter r must enter int a cmmercial agreement, which gverns disbursement frm a single payment. Regardless, at least ne revenue grade meter, t be defined as the meter f recrd, must be installed at the Pint f Intercnnectin. If individual revenue grade meters are installed in additin t the meter f recrd, they will prvide each participant their percentage f the meter f recrd. It will be required f the behind the Pint f Intercnnectin parties t submit t PJM hurly MW ttals by entity equal t the ttal f the meter f recrd. 1.2 Intercnnectins with municipalities, c-peratives, r nn-pjm Transmissin Owner member distributin cmpanies A Generatin Owner seeking t be designated, in whle r in part, as a Capacity Resurce r Energy Resurce, by cnnecting t any municipality, c-perative, r nn-pjm Transmissin Owner member distributin cmpany that are nt jurisdictinal t PJM s Tariff, must wrk independently with that nn-ferc jurisdictinal entity t btain permissin t intercnnect t and wheel thrugh their system, r t build a dedicated attachment line thrugh the affected system t the PJM System. If a nn-ferc jurisdictinal entity allws wheeling fr whlesale 12

13 Sectin 1: Intercnnectin Prcess Overview activity, then it is up t that entity t fllw all FERC requirements that whlesale wheeling requires. Additinally, the Develper must enter the PJM New Services Queue. The Pint f Intercnnectin fr requests t nn-ferc jurisdictinal entities is where the nn-ferc jurisdictinal entity s system cnnects t PJM member facilities. PJM will study the generatin impacts at the Pint f Intercnnectin fr reinfrcement t the PJM system. During the same time that PJM is cnducting its study, the custmer may need t separately enter the necessary nn-ferc jurisdictinal entity s intercnnectin queue prcess in rder t btain a right t cnnect the new facility t the nn-ferc jurisdictinal entity s system. PJM will perfrm necessary studies t identify and mitigate any impacts t the PJM system. Upn cmpletin f PJM studies, PJM will issue a Whlesale Market Participatin Agreement (WMPA) with apprpriate milestnes fr the Develper t cmplete the nn-ferc jurisdictinal entity s intercnnectin prcess, cmmence cnstructin, and cmmence cmmercial peratins within reasnable time perids. The WMPA will permit the Develper t participate in PJM s whlesale market after cmpleting the nn-ferc jurisdictinal entity s intercnnectin prcess and cmmencement f generatin transactins. Failure t timely enter and maintain active queue status the nn-ferc jurisdictinal entity s intercnnectin prcess, if required, will result in withdrawal frm the PJM queue. Failure t meet the milestnes in the WMPA will result in terminatin f the WMPA. Failure t participate in the whlesale market after becming cmmercial will result in terminatin f the WMPA. 1.3 Intercnnectin Prcedures fr FERC Jurisdictinal Facilities and Nn-FERC Jurisdictinal Facilities In accrdance with the Tariff, a Develper f a generatr intercnnecting t the in the PJM regin t be designated, in whle r in part, as a Capacity Resurce r Energy Resurce, must enter the generatr int the PJM New Services Queue. Hwever, the applicability f the Tariff intercnnectin prcess fr a whlesale generatr intercnnecting t distributin facilities varies depending n whether FERC has jurisdictin ver the distributin facilities. The PJM Tariff prvides intercnnectin prcedures fr generatin resurces cnnecting t FERC-jurisdictinal facilities. This Sectin 1.3 applies nly t whlesale transactins n nnferc jurisdictinal facilities that are nt intercnnectins t municipal utilities, cperatives, r nn-pjm Transmissin Owners member distributin cmpany that are nt subject t PJM s Tariff. See Sectin 1.2 fr infrmatin regarding intercnnectins t municipal utilities, cperatives r nn-pjm Transmissin Owners member distributin cmpanies. If a generatin resurce that desires t be designated, in whle r in part, as a Capacity Resurce r Energy Resurce is prpsing t intercnnect t facilities that are nt under FERC s jurisdictin (except thse entities described in Sectin 1.2), PJM must still cmplete studies t verify n impacts t the PJM system. The generatin resurce wner will be required t enter the nn-ferc jurisdictinal entity s intercnnectin prcess in parallel t PJM s New Services Queue. 13

14 Sectin 1: Intercnnectin Prcess Overview 1.4 Merchant Transmissin Intercnnectin Facilities As specified in the PJM Tariff and Schedule 6 f the PJM Operating Agreement, the Develpers f Merchant Transmissin Facilities that intercnnect with the PJM Transmissin System may be entitled, subject t certain restrictins, t elect certain transmissin rights that are created by the additin f such facilities. Discussins f these rights and specific design, cnstructin, peratinal and maintenance aspects f merchant transmissin intercnnectin facilities can be fund by referring t the PJM Tariff. 1.5 Initiating the Generatin and Transmissin Intercnnectin Planning Prcess In rder t initiate the Intercnnectin Planning Prcess, a Develper must cntact PJM thrugh PJM s htline r thrugh PJM s web site. The Develper must submit a cmpleted Intercnnectin Request. This is accmplished via the executin f a Feasibility Study Agreement, per Tariff Attachment N, Attachment Y, r Attachment BB fr generatin intercnnectin requests and Tariff Attachment S fr merchant transmissin intercnnectin requests. All Tariff attachments fr applicatin f service in the New Services Queue (intercnnectin queue) can be fund in the library sectin f PJM s web site. Cmpleted Attachments, including the submittal f all required data, must be accmpanied by the apprpriate fees as detailed in fllwing sectins f this Manual in rder t reserve a place in PJM s intercnnectin New Services Queue. 1.6 Prject Management and Client Management After submitting a PJM New Service Request, PJM assigns a prject manager. The prject manager will be respnsible fr wrking with each Develper and their respective staff t cmplete the necessary steps related t intercnnectin planning. Additinal prject managers will be assigned fr subsequent facility cnstructin and peratinal phases f the prject. After cntacting PJM fr the first time thrugh PJM s htline r thrugh PJM s web site, the Develper will be assigned a Client Manager. Client Managers crdinate PJM activities that facilitate each Develper s membership and market participatin, bridging any cncerns r crdinatin issues with apprpriate PJM staff including the respective PJM prject managers wh versee the intercnnectin prcess. 1.7 Electing Capacity Resurce Status versus Energy Resurce Status A Develper must elect the status type fr the generating capability assciated with each intercnnectin request: Capacity Resurce Status r Energy Resurce Status. A Capacity Resurce status designatin permits the generatr t be utilized by PJM Lad Serving Entities t meet capacity bligatins under the terms f the PJM Reliability Assurance Agreement (RAA), available in the Library sectin f PJM s website. Capacity Resurce Status: Units must meet certain intercnnectin requirements fr being granted this status including requirements fr deliverability. Capacity Resurce status is granted based n the availability f sufficient transmissin capability t ensure the deliverability f generatr utput t netwrk lad and t satisfy the reginal reliability 14

15 Sectin 1: Intercnnectin Prcess Overview requirements f the NERC regin in which the generatr is lcated - ReliabilityFirst r SERC. Specific analytical tests perfrmed during the Generatin Intercnnectin Feasibility Study and System Impact Study reveal the specific transmissin system upgrades required t meet these reliability criteria. Capacity Resurce Status cnveys specific capacity intercnnectin rights enabling a unit t participate in PJM capacity markets. Thrugh these markets, LSEs may prcure capacity rights t meet their respective capacity bligatins under the terms f the PJM Reliability Assurance Agreement. Energy Resurce Status: The planning studies fr generating units seeking this status d nt include the deliverability analyses required f thse units seeking Capacity Resurce status. As such, Energy Resurce units are nly permitted t participate in the energy market. Such units d nt receive Capacity Intercnnectin Rights and may nt participate in PJM Capacity markets. 1.8 PJM Membership Membership in PJM is granted under the terms f the PJM Operating Agreement. The Client Manager assigned t each Intercnnectin Request will guide each Develper thrugh this prcess. While PJM membership is nt required fr the initial planning and cnstructin phases f a given generatin r merchant transmissin intercnnectin prject, Membership will be required prir t cmmercial peratin. And, in many cases, Membership will be required in rder t integrate peratinal and market infrastructure with PJM. PJM Membership entails certain data requirements, peratinal and market crdinatin, cmmittee supprt and financial bligatins 1.9 Membership in NERC Reginal Cuncils PJM perates within the gegraphic bundaries f several regins f the Nrth American Electric Reliability Crpratin (NERC), including applicable areas f the ReliabilityFirst and the SERC Reliability Crpratin. Any new signatry t the PJM Operating Agreement is bligated t be in cmpliance with the respective planning, perating and membership requirements f the respective NERC Cuncil in which their facilities are lcated The Intercnnectin Request Studies The PJM Operating Agreement, Schedule 6, and the Tariff, Parts IV and VI, describe the prcedures used t prcess requests fr intercnnectin with the PJM transmissin system. The Operating Agreement and Tariff establish the statutry basis fr the business rules, described in detail in this Manual M14A, fr the intercnnectin request prcess. These business rules include three analytical steps: 1. Feasibility Study 2. System Impact Study 3. Intercnnectin Facilities Study. Each step impses its wn financial bligatins and establishes milestne respnsibilities. 15

16 Sectin 1: Intercnnectin Prcess Overview Prjects within each time-based queue are evaluated against a baseline benchmark set f studies in rder t establish prject-specific respnsibility fr system enhancements, separate frm general netwrk upgrades suggested by the results f baseline analyses. Each Develper is encuraged t participate in the activities f the Transmissin Expansin Advisry Cmmittee (TEAC) and its Sub reginal RTEP Cmmittee. PJM cnsults with the TEAC and Sub reginal RTEP Cmmittees as part f the larger Reginal Transmissin Planning Prcess thrugh which a crdinated reginal expansin plan including expansins necessitated by generatin and merchant transmissin intercnnectin - is reviewed. Imprtant PJM intercnnectin prcess steps established t implement prvisins f the PJM Tariff: The intercnnectin queuing prcess including the prcedures used t initialize the intercnnectin evaluatin prcess based n the timing f the receipt f all requests The cst respnsibility fr transmissin upgrades required fr intercnnectin; The rights accrded t a generatr after it has satisfied Tariff requirements; The required Intercnnectin Service Agreement (ISA) and Cnstructin Service Agreement (CSA). Each f these tw agreements is executed by and amng three parties: the Develper, the Transmissin Owner and the Transmissin Prvider (PJM) Changes t Existing r Prpsed Generatin An existing r prpsed generating unit may experience changes which will require cnsideratin under PJM s intercnnectin, prcess: New Ownership Requirements: If a generating facility is acquired by a new wner, then the transfer f respnsibilities and rights in the PJM market fr the transferred facility will be cnveyed t the new wner fllwing ntificatin t PJM by the selling and purchasing entities. Unit Output Increases: If a Generatin Owner plans t increase the Maximum Facility Output (MFO) r the amunt f Capacity Intercnnectin Rights (CIRs) f an existing generating unit r active Intercnnectin Request in the PJM study queue t a MW value greater than the amunt already specified in a generating unit s existing ISA r active Intercnnectin Request, then that additinal MFO r CIRs will be treated as a new generatin Intercnnectin Request subject t the prcedures discussed in Manual 14A. If a prpsed generating unit increase is less than 20 MW, the Generatin Owner may be eligible t fllw the Small Generatin Intercnnectin Prcess, set frth in Part IV, subpart G f the Tariff and discussed herein belw. Maximum Facility Output (MFO) and Capacity Intercnnectin Rights (CIRs) are defined in Part I f the Tariff Cmmn Service Prvisins, under OATT Definitins. If a Generatin Owner changes the electrical characteristics f the existing generating unit(s) that were previusly studied by PJM, but is nt increasing the MFO r CIRs, then the Generatin Owner must request that a necessary study be perfrmed by PJM (See PJM Manual 14A Sectin Tariff Sectin 36.2A.4 and Attachment O, Appendix 2, Sectin 3.1). Even when nt increasing MFO r CIRs, if a Generatin Owner wishes t parallel generating units in excess f the number f units previusly studied by PJM, this wuld change the electrical 16

17 Sectin 1: Intercnnectin Prcess Overview characteristic and require a necessary study prir t perating with additinal generating units. If a Generatin Owner installs a spare generating unit with different electrical characteristics than the primary generating unit, the spare generating unit must be studied with a necessary study prir t being paralleled with the system Cnsent t Assignments Prir t transferring wnership f a prject r cmpany, a Develper, Generatin Owner r Transmissin Owner must cmplete an applicable cnsent t assignment agreement. The PJM Law Department has established templates fr cnsent t assignment at the fllwing stages f develpment and peratin: Assignment prir t the final agreement Prir t the ISA, WMPA r UCSA being executed, a custmer shuld wrk with their assigned Intercnnectin Prjects Department prject manager t cmplete the agreements lcated n pjm.cm. Tw methds fr assignment prir t the final agreement have been develped: 1) a cmbined buyer / seller agreement r 2) the buyer and seller each separately cmpleting respective agreements Assignment after the final agreement and prir t cmmercial peratin During the cnstructin phase, which cmmences upn executin f the final agreement(s) and prir t cmmercial peratin, if a Develper r lender elects t assign a prject, they need t wrk with the Infrastructure Crdinatin Department prject manager t cmplete the agreements lcated n pjm.cm. Three agreements are available fr the initiating party: 1) a lender agreement, 2) Intercnnectin Custmer agreements, and 3) Transmissin Owner agreements Assignment after cmmercial peratin The fllwing applies t any generatin, transmissin r transmissin wner facility participating in the PJM Market. Generatr wners r merchant transmissin facility wners that wish t assign their facility t anther entity r t perfrm a lender transfer after cmmercial peratin shall fllw the fllwing instructins: Ntify yur intent t yur PJM client manager a minimum f 90 days prir t the financial transfer t assure adequate time t make necessary agreement mdificatins and filings with the Federal Energy Regulatry Cmmissin. Identify t PJM all existing underlying affected agreements, such as Pwer Purchase Agreements, tw-party intercnnectin agreements, PJM Intercnnectin service agreements; and Identify any changes t the facility that have ccurred since the current effective agreement was executed that are nt currently dcumented in the existing agreement, such as scpe change dcuments frm cnstructin, retirements f units depictured r described in the agreement, mdificatins t the facility that wuld be reflected n a neline diagram. PJM will review the prpsed assignment and existing agreements t determine the prper dcumentatin and filings necessary t effectuate the requested asset transfer r lender change. 17

18 Sectin 1: Intercnnectin Prcess Overview 1.13 Small Generatin Intercnnectin Cnsideratins (20 MW r less) Requests fr the intercnnectin f new resurces f 20 MW r less, r fr increases f 20 MW r less fr existing generatin may be prcessed thrugh expedited prcedures, in accrdance with Part IV, Subpart G f the PJM Tariff. Generating resurces f this size fall int ne f three categries: 1. Permanent Capacity Additins: units which are expected t remain cnnected t the transmissin system fr the life f the resurce, expect t receive capacity intercnnectin rights, and may be utilized t meet the capacity bligatins f LSEs. 2. Permanent Energy Resurce Additins: units which are expected t remain cnnected t the transmissin system fr the life f the resurce but receive n Capacity Transmissin Intercnnectin Rights and are nt permitted t be used t meet capacity bligatins f LSEs. 3. Temprary Energy Resurce Additins: units which are nly expected t remain cnnected t the transmissin system temprarily (less than six mnths), participating in spt market activity during peak demand perids and requiring nly minimal r n transmissin enhancements. The planning prcess requirements fr each f these are described in mre detail in Manual 14B Distributed Generatin Develpers wh are cnsidering cnstructin f generating facilities within PJM which are 20 MW r less may fllw the Small Generatr Intercnnectin prcess described abve Demand Respnse Resurce If a plant peratr seeks peratin as part f a lad management arrangement, the peratr is directed t PJM s lad management prgram, fund n PJM s web Behind the Meter Generatin Any Behind the Meter Generatin which seeks t be designated in whle r in part as an energy r capacity resurce must submit a Generatin Intercnnectin Request fr the prtin f the unit s utput that will participate in the PJM market. Further, sites with 10 MW r mre must abide by PJM metering requirements as well as market, peratinal and settlement requirements. Manual 14D (Appendix A) describes the treatment f Behind the Meter generatin, prvisins fr which are captured in PJM s Tariff, Subpart A, Sectin 36.1.A. As with any ther Intercnnectin Request, The Develper will be assigned a Prject Manager fr each prcess phase captured in Exhibit 1. The Prject Manager will be respnsible fr wrking with each Develper and staff t cmplete the respective steps fr that particular phase. Attachment B: Intercnnectin Prcess Team Rle Clarity Diagram captures Implementatin Team rles fr each intercnnectin prcess phase (including a PJM Prject Manager fr each phase) and shws hw each Manual aligns with each phase. 18

19 Sectin 1: Intercnnectin Prcess Overview Generating resurces perating behind the meter, in islatin frm the PJM bulk pwer transmissin system and which d nt intend t participate in the PJM whlesale energy market, need nly crdinate planning, cnstructin and/r peratin with the hst Transmissin Owner Crdinatin f studies between PJM and MISO MISO and PJM shall cnduct Intercnnectin Studies, as necessary, t determine the impacts f Intercnnectin Requests n each ther s transmissin system which will be treated as an affected system. This jint crdinatin f Intercnnectin Studies will be in additin t the existing Intercnnectin Studies that MISO and PJM already perfrm t evaluate the impacts f their respective queues n their wn transmissin system. The Transmissin reinfrcement and the study criteria used in the crdinated intercnnectin studies will hnr and incrprate prvisins as utlined in the PJM and MISO Business Practices Manuals and their respective Tariffs. Example: PJM and PJM Transmissin Owner study and reinfrcement criteria will apply t PJM transmissin when PJM evaluates the impact f MISO generatin n PJM transmissin. MISO and MISO transmissin wner study and reinfrcement criteria will apply t MISO transmissin when MISO evaluates the impact f PJM generatin n MISO transmissin Study f PJM Intercnnectin Request impacts n MISO transmissin During the curse f PJM Intercnnectin studies, PJM shall mnitr the MISO transmissin system and prvide the draft results f the ptential impacts t MISO. These ptential impacts shall be included in the PJM System Impact study reprt alng with any infrmatin regarding the validity f these impacts and pssible mitigatin received frm MISO and the MISO transmissin wners. Fllwing the cmpletin f the PJM Feasibility Study and after the custmers execute the PJM System Impact Study Agreement, PJM shall frward t MISO, at a minimum f twice per year (April 15 and Octber 15), infrmatin necessary fr MISO and the MISO transmissin wners t study the impact f the PJM intercnnectin request(s) n the MISO transmissin. MISO and the MISO transmissin wners shall study the impact f the PJM intercnnectin request(s) n MISO transmissin and prvide draft results t PJM by: March 1 fr PJM intercnnectin requests prvided t MISO n r befre Octber 15 f the previus year, September 1 fr PJM intercnnectin requests prvided t MISO n r befre April 15 f the same year. These impacts shall include a descriptin f the required system reinfrcement(s), an estimated planning level cst and cnstructin schedule estimates f the system reinfrcement(s). At times PJM may identify t MISO the need t perfrm studies assciated with an intercnnectin request ther than the times identified abve. MISO shall endeavr t study these requests at 19

20 Sectin 1: Intercnnectin Prcess Overview the earliest time which is feasible, but nt later than the times as specified abve (cmmencing after April 15 and Octber 15). In the event f prject withdrawals in the PJM queue, MISO may perfrm additinal reliability analysis during the Facilities Studies phase and revise the affected system study results prvided during the PJM System Impact Study phase. If MISO identifies required Netwrk Upgrades, n the MISO transmissin system, due a PJM intercnnectin request, then the PJM Intercnnectin Custmer(s) shall be required t fllw all prvisins, delineated under Attachment X f the MISO tariff, related t Facility Study funding and apprpriate Netwrk Upgrade Facility Cnstructin Agreement. Cst allcatin fr required Netwrk Upgrades n the MISO transmissin, fr PJM intercnnectin requests, shall be gverned by and subject t MISO Tariff and Manuals. MISO shall determine the curtailment necessary assciated with the request fr service (e.g.: transmissin service, generatin intercnnectin, etc.) which was identified as impacting a MISO cnstraint Use f system reinfrcements utside f MISO fr MISO cnstraints During the determinatin f reinfrcements, required fr MISO cnstraint mitigatin, PJM and MISO may identify ther planned nn-miso reinfrcement(s) that may alleviate a cnstraint inside f MISO s bundaries. Under such circumstances any PJM prject relaying n thse reinfrcement(s) shall have limited injectin rights until thse reinfrcement(s)are put in place. MISO shall determine the necessary injectin limits, assciated with the PJM New Service Request, that will be implemented in Real Time until the necessary upgrades identified thrugh MISO s affected system analysis are in-service Study f MISO Intercnnectin Request impact n PJM Transmissin During the curse f MISO Intercnnectin studies, MISO shall mnitr the PJM transmissin system and prvide the draft results f the ptential impacts t PJM. These ptential impacts shall be included in the MISO System Impact study reprt alng with any infrmatin regarding the validity f these impacts and pssible mitigatin received frm PJM and the PJM transmissin wners. Prir t cmmencing the MISO DPP study MISO shall frward t PJM, at a minimum f twice per year (January 1 and July 1), infrmatin necessary fr PJM and the PJM Transmissin Owners t study the impact f the MISO intercnnectin requests n the PJM territry. Fr the prescribed times when MISO prvides this infrmatin t PJM, January 1 and July 1, PJM and the PJM Transmissin Owners shall study the impact f the MISO intercnnectin requests and prvide draft results n the PJM transmissin by March 31, fr requests submitted t PJM n r befre January 7th f the same year, and September 29 fr requests submitted t PJM n r befre July 7th f the same year. These impacts shall include a descriptin f the required system reinfrcement(s), an estimated planning level cst and cnstructin schedule estimates f the system reinfrcement(s). At times MISO may identify t PJM the need t perfrm studies assciated with an intercnnectin request ther than the times identified abve. PJM shall endeavr t study these requests at the earliest time which is feasible, but nt later than the times as specified abve (cmmencing after January 7 and July 7). 20

21 Sectin 1: Intercnnectin Prcess Overview If PJM identifies required Netwrk Upgrades, n the PJM transmissin system, due a MISO intercnnectin request, then the MISO Intercnnectin Custmer(s) shall be required t fllw all prvisins, delineated under Tariff, related t Facility Study funding and apprpriate Netwrk Upgrade Facility Cnstructin Agreement bligatins. Cst allcatin fr required Netwrk Upgrades n the PJM transmissin, fr MISO Intercnnectin prjects, shall be gverned by and subject t Tariff and Manuals. PJM shall determine the curtailment necessary assciated with the request fr service (e.g.: transmissin service, generatin intercnnectin, etc.) which was identified as impacting a PJM cnstraint Use f system reinfrcements utside f PJM fr PJM cnstraints During the determinatin f reinfrcements, required fr PJM cnstraint mitigatin, PJM and MISO may identify ther planned nn-pjm reinfrcement(s) that may alleviate a cnstraint inside f PJM s bundaries. Under such circumstances, any MISO prject relying n thse reinfrcement(s) shall have limited injectin rights until thse reinfrcement(s) are put in place. PJM shall determine the necessary injectin limits, assciated with the MISO Intercnnectin Request, that will be implemented in Real Time until the necessary upgrades identified thrugh PJM s affected system analysis are in-service Study f PJM Transmissin Service Request impacts n MISO transmissin MISO and PJM shall crdinate n new Transmissin Service Request (TSR) Studies t determine impacts n each ther s transmissin system which will be treated as an affected system. The crdinatin and cmpletin f these studies will fllw the same basic prcedures described in Sectin abve relating t intercnnectin request studies Studies fr Lng Term Firm Transmissin Service Transmissin Service Requests are received thrugh the PJM OASIS and, in the case f Lng Term Firm Transmissin Service, must be evaluated alng with the ther requests fr service which are studied in the PJM New Services Queue when thse requests fr Lng Term Firm Transmissin Service are requests utside f the Available Transfer Capability, ( ATC ), hrizn f 18 mnths. The ATC hrizn extends fr 18 mnths frm the date f the Oasis request. Additinal details regarding the ATC hrizn are lcated in PJM Manual 2: Transmissin Service Request. The first step in the evaluatin f Lng Term Firm Transmissin Service assciated with the inclusin f the request in the New Services Queue is t perfrm a Feasibility Study. During the Feasibility Study, PJM will cnduct a screening f the requested service with the remaining New Service Requests in the Feasibility Studies discussed later in this manual fr generatin and transmissin requests. If the custmer prceeds frward after the Feasibility Study they must execute the System Impact Study Agreement. PJM shall cnduct a study f the requested service with the remaining New Service Requests in the System Impact Study. Fllwing the cmpletin f this study, the transmissin service custmer will receive a System Impact Study and will be required t mve frward int the Facilities Study phase based n the results f this study. 21

22 Sectin 1: Intercnnectin Prcess Overview 1.19 Interim Deliverability Studies PJM s prcess fr the cnduct f studies assciated with prjects which have requested service r evaluatin in the New Services Queue, r prjects which are under study cnsidering PJM as an Affected System, require that all studies be perfrmed n a case fr each study which is independent f the requested service dates assciated with the prpsed prject/service. The use f the same case fr ne prjects evaluatin, which is cnsistent with the same case as the case used fr ther prjects under study, allws fr develpment f required upgrades while preserving the rights assciated with the individual Queue Psitin fr the prject(s) under study in that queue study. As a result f the use f a case which may nt cincide with the requested year f service fr any individual prject, the ability f any individual prject t cme int service in a year befre the year f the case used fr the study f the prject is dependent n the availability f system capability in any earlier year as can be determined during interim deliverability studies. Prjects which rely n reinfrcements which have nt been cnstructed at the time the prject cmes int service will als require evaluatin n a case which is needed t determine the capability f the existing system t allw the prjects utput r flw t be granted thrugh the cnduct f interim deliverability studies. Example: A prject was evaluated and it was fund t require cnstructin f a netwrk reinfrcement which has nt been cnstructed when the prject desires t cme int service. An interim deliverability study will be cnducted t determine what utput, r flw, can be accmmdated n the system prir t cmpletin f the required upgrade. Interim Deliverability studies will be cnducted n a peridic basis, and as required, in supprt f RPM auctins and preparatin f dcuments fr service (e.g.: Intercnnectin Service Agreement, Upgrade Cnstructin Service Agreement, Intercnnectin Agreements in areas utside f PJM, etc.). These studies will be cnducted t evaluate the available system capability based n when a prject requesting service executes the applicable service agreement as well as the prjects Queue Psitin. Fr prjects utside f PJM, the Queue Psitin is determined based n the timing f the studies fr that prject and when they are identified t PJM by the external entity which is respnsible fr the study f that prjects requested service (e.g.: MISO, NYISO, etc.). The availability f service will be determined during interim deliverability studies which shall prvide the custmer(s) with the availability f service n an annual basis frm June 1 f the first year t May 31 f the fllwing year, the planning year (e.g.: 2016 interim deliverability study is applicable t the time perid f June 1, 2016 t May 31, 2017). Interim deliverability studies will use the same criteria as is used fr the evaluatin f the need fr reinfrcements assciated with a prject under study. Interim deliverability studies will incrprate thse prjects which are anticipated t be in service during the year under study and inclusin f prjects in these studies will be based n requests by custmers as well as infrmatin PJM may have as t thse prjects which will be in service Interim Deliverability Studies assciated with prjects using reinfrcements utside f PJM fr PJM cnstraints Similar t the requirements as utlined in 1.14 abve, the prjects evaluated fr impacts n PJM facilities which use reinfrcements cmpleted n system utside f PJM t alleviate cnstraints in PJM must have interim deliverability studies cnducted. 22

23 Sectin 1: Intercnnectin Prcess Overview In circumstances when a prject is waiting fr the cmpletin f a reinfrcement fr which they are nt respnsible fr funding, they will receive lwer pririty fr system capability, in relatin t the cnstraint which will be relieved by the reinfrcement when it is built, in cmparisn t thse prject(s) which are nt waiting fr the cmpletin f an upgrade assciated with that same cnstraint but have instead prceeded t building a reinfrcement. Example: Prject 1 is identified as impacting a cnstraint and intends t wait fr cmpletin f a system reinfrcement they are nt funding. Prject 2 des nt wait fr cmpletin f a system reinfrcement but instead builds anther reinfrcement which can be put int service. In this case, regardless f the riginal psitin f the tw prjects in relatin t each ther, Prject 2 will receive higher pririty as cmpared t Prject 1 in determining the availability f the current systems capability t allw the prject t perate r flw energy while awaiting the cmpletin f the reinfrcement under cnstructin and being funded by Prject Affected system studies fr PJM New Service Requests PJM New Service Requests which intend t cme int service prir t the cmpletin f any required upgrades assciated with affected system cnstraints r in years prir t the year f the case used in their studies will be subject t limitatins based n PJM studies fr interim deliverability as well as any limitatins which result frm affected system1 studies. PJM Generatin Intercnnectin Prjects that cme int service prir t cmpletin f required Netwrk Upgrades assciated with cnstraints n the MISO transmissin system will be subject t the MISO Quarterly Operating Limit prcess, as utlined in the MISO Tariff in Attachment X Sectin 11.5 and in the MISO Transmissin Access Planning Prvisinal Intercnnectin Agreement Limit Methdlgy whitepaper, until required Netwrk Upgrades assciated with cnstraints n the MISO transmissin system have been cmpleted. MISO will crdinate prject utput limitatins with PJM n a quarterly basis, and MISO will prvide PJM the list f cnditins that will be added t PJM Intercnnectin Custmer s Intercnnectin Service Agreement Nn-Queue Intercnnectin Service Agreements PJM s New Services Request prcess fr generatin intercnnectin applies t all new generatin and uprates t existing generatrs. Fr existing generatrs already intercnnected t PJM that are currently perating under a tw-party Intercnnectin Agreement and / r a pwer purchase agreement, r bth, and seek t cnvert t a PJM three-party ISA due t a transfer f wnership r the pwer purchase agreement is reaching term, a New Service Request is nt required. Fr purpses f tracking the prject identifying the generatr in PJM s prcesses and in FERC filings, and ensuring all csts assciated with the cnversin are paid by the Generatin Owner, PJM develped an agreement and prcedures t accmplish the request, referred t as the Nn-Queue Prcess. 1. In general, a tw-party intercnnectin agreement r pwer purchase agreement will likely be cnverted directly t a Tariff Intercnnectin Service Agreement. Hwever, it is pssible that an intercnnectin arrangement histrically permitted may have prvisins unacceptable under the Tariff. The fllwing are examples: 1 Refer t the Tariff definitin fr affected systems. 23

24 Sectin 1: Intercnnectin Prcess Overview a generatr s attachment facilities arrangement des nt cnfrm t PJM s Tariff and requires rearrangement f the Attachment Facilities; r existing metering des nt meet PJM requirements, metering mdificatins may be required. The list abve is nt exhaustive nr d the examples prtray all ptential scenaris and issues that may need t be addressed during the nn-queue prcess; rather, it demnstrates that in additin t drafting an Intercnnectin Service Agreement, a Cnstructin Service Agreement may be required. PJM has develped a Cst Respnsibility Agreement t cver PJM and Transmissin Owner csts assciated with the agreement(s) develpment. A depsit f $10,000 is required with the agreement and any unspent mney assciated with the depsit are refundable nce the agreements are executed r if the custmer changes their mind regarding receiving an agreement. The cst agreement must be filed with the FERC. If mdificatins requiring Transmissin Owner cnstructin are required, an assciated Intercnnectin Cnstructin Service Agreement may be required. Executin f the Intercnnectin Service Agreement under this prcess fllws the same prcedures identified in sectin 212 f the Tariff. The generatr wner will have the same timing requirements t execute necessary agreements as identified in this sectin f the Tariff. If cnstructin is required by the Transmissin Owner, assciated Security and requirements identified in the agreement will als apply. Upn executin, PJM will file the agreement(s) with r, if cnfrming, reprt them t the FERC. Attrney review and filing duratins must be cnsidered by the Generatin Owner when requesting PJM t implement these three-party agreements. If the legacy agreements cntain terms and cnditins nt nrmally captured by the ISA, time fr negtiatins may als be required. Because f this ptential, PJM requests a minimum f a six mnth ntice prir t the terminatin f a Pwer Purchase Agreement r an wnership change, which requires cnversin t a three-party ISA. Generatrs seeking a NnQueue ISA shuld cntact PJM Custmer Service. Custmer Service cntact infrmatin can be fund n the PJM Web Page under the Cntact Us link Serving Lad as a Generatr Unless allwed under applicable state r lcal law, an entity is nt permitted t serve anther entity s lad. Statin Pwer lads can be served between generatrs in a single prtfli. 24

25 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess In this sectin yu will find an verview f the generatr and transmissin intercnnectin planning prcess. A descriptin f the Feasibility Study Agreement executin and analysis (see Generatin and Transmissin Intercnnectin Feasibility Study Agreement Executin and Analysis ). A descriptin f the System Impact Study Agreement executin and analysis (see System Impact Study Agreement Executin and Analysis ). A descriptin f the Facilities Study Agreement executin and analysis (see Generatin and Transmissin Intercnnectin Facilities Study Agreement Executin and Analysis ). Specific requirements fr intercnnectin f large generatin and transmissin prjects with a capability greater than 20MW 2.1 Generatin and Transmissin Intercnnectin Feasibility Study Agreement Executin and Analysis Purpse f the Generatin r Transmissin Intercnnectin Feasibility Study Agreement As a FERC accepted Reginal Transmissin Organizatin (RTO), PJM administers the prcess fr the intercnnectin f all new generatrs and new transmissin facilities t the PJM Transmissin Grid. New generatin Develpers may request either f tw frms f intercnnectin service, Capacity Resurce r Energy Resurce service. Capacity Resurce intercnnectins receive the right t schedule bth Capacity and energy deliveries at a Pint f Intercnnectin Energy Resurce intercnnectins receive the right t schedule nly energy deliveries at a specified pint n the PJM Transmissin System. Capacity allws the generatr t be utilized by PJM lad-serving entities t meet Capacity bligatins impsed under the Reliability Assurance Agreement. Capacity resurces may participate in PJM Capacity Credit markets and in Ancillary Service Markets. Energy Resurce status allws the generatr t participate in energy markets based n lcatinal prices. Capacity Resurce status is based n prviding sufficient transmissin capability t ensure deliverability f generatr utput t aggregate netwrk lad and t satisfy varius cntingency criteria established by the particular reginal reliability cuncil (e.g. ReliabilityFirst r SERC) in which the generatr is lcated. See PJM Manual 14B, Attachment C fr details f the PJM Deliverability Testing Methds. Specific tests perfrmed during the Generatin Intercnnectin Feasibility Study and later System Impact Study will identify thse upgrades required t satisfy the cntingency criteria applicable at the generatr s lcatin Intercnnectin Requests and PJM Queue Psitin There are tw New Service Queue windws per year accrding t the PJM Tariff fr PJM t accept New Service Requests. Each windw is pen fr six mnths: the first queue windw th st clses n April 30 f the calendar year, and the secnd queue windw clses n Octber 31 f the same calendar year. 25

26 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Nte: Effective Nvember 1, 2016, PJM will run a transitinal, five-mnth queue. This transitinal queue will terminate n March 31, All subsequent New Service Queue windws fllwing this transitinal perid will return t six mnth duratins clsing n March 31st and September 30th respectively. The queue fee structure was designed t incentivize early queue submittals. Earlier queue submittals prvide time fr data reviews, scping meetings, planning mdel develpment and analysis f all valid New Service Requests. A New Service Request will nt be assigned a queue psitin until all Tariff requisite infrmatin, data, agreements, and depsits are submitted. A New Service Request that des nt cntain all the required elements is deemed an insufficient request. When submitting an Attachment N, a Generatin Intercnnectin Custmer must certify that it has prvided all infrmatin. Upn receipt f an executed New Service Request and the required depsit, PJM will pen a chargeable accunt and begin reviewing the New Service Request submittal. Whether the request is insufficient, lacking required elements, r deficient, prvided all required elements but with incrrect, missing r underprvided elements, PJM will cmmence a review f the submittal. The csts assciated with the time required t review the submittal will be deducted frm the depsit. Nte: Effective Nvember 1, 2016, PJM will perfrm a deficiency review as lng as a Develper prvides all infrmatin ther than site cntrl. While PJM will perfrm the deficiency review, the prject will nt be assigned a queue psitin until site cntrl is received. The custmer must prvide site cntrl by the earlier f the end f the deficiency perid r the clse f the queue windw. Prviding site cntrl after a deficiency windw has already started des nt establish new deficiency windw perid. Site cntrl must be cleared within the riginal deficiency windw perid Site Cntrl The Tariff states that a Develper must shw evidence f site cntrl; and site cntrl is required fr a prject t have a valid queue psitin. The Tariff als prvides PJM the authrity t verify site cntrl that is fully sufficient fr the technlgy and MWs requested fr a prpsed generating facility. PJM ensures that Generatin Intercnnectin Custmers prpsing facilities have adequate land t supprt the prpsed generatin facilities required t preserve the PJM system rights (MW Energy and MW Capacity) they seek t btain thrugh their queue request. Accepting a New Service Request fr mre MW capability than the site and/r prpsed technlgy is capable f prducing harms subsequently queued New Service Custmers by reducing available system capability. PJM requires site cntrl t be in the name f the party identified n the intercnnectin request r the parties must demnstrate t PJM s satisfactin the relatinship between the wner with site cntrl and the party requesting intercnnectin. The same requirement applies t Transmissin Intercnnectin Requests initiated with Attachment S at the System Impact Study phase. Althugh there is sme flexibility as t what dcuments may be submitted t supprt site cntrl requirements, site cntrl evidence fr the 26

27 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess intercnnectin prcess typically demnstrates three key elements: cnveyance, term, and exclusivity. Cnveyance is demnstrated thrugh a dcument retained by the Intercnnectin Custmer that cnveys the prperty t the Intercnnectin Custmer (i.e. deed r lease) r guarantees the Intercnnectin Custmer the right t future cnveyance at Intercnnectin Custmer s sle discretin (i.e. ptin t lease r ptin t buy). A Memrandum f Understanding (MOU) r a Letter f Intent (LOI) t demnstrate cnveyance is nt sufficient since MOUs/LOIs d nt cntain firm and sle site cntrl cmmitment r exclusivity, frm the prperty wner t the Intercnnectin Custmer. Term, the minimum duratin required t evidence site cntrl is based upn the anticipated duratin f the study prcess fr the relevant prject, i.e., three years fr large generatin prjects and tw years fr small generatin prjects. The duratinal requirement is directly tied t the expected time required t cmplete the Intercnnectin Prcess. Exclusivity is evidenced by written acknwledgement frm the prperty wner f the identified site that, fr the term (which shall be, at a minimum, equal t the duratin requirement) f the lease r ptin agreement, the prperty wner cannt make the identified site prperty available fr purchase r lease t anyne ther than the Intercnnectin Custmer. The evidence f wnership prvided fr site cntrl must be frm the same cmpany name that is prviding the New Service Request r the parties must demnstrate t PJM s satisfactin the relatinship between the wner with site cntrl and the party requesting intercnnectin. The New Service Request agreement is between a specific custmer and PJM and all dcumentatin supprting the agreement must be in the same name as the custmer identified in the New Service Request agreement. FERC Order 807 allws multiple prjects t intercnnect behind a Pint f Intercnnectin. A shared facilities agreement is required if jintly wned cmmn Attachment Facilities are prpsed. The Generatin Intercnnectin Custmer s site plan submitted with the Attachment N applicatin must shw the arrangement f the prpsed facilities fr the amunt f MW requested. This is needed fr all types f generatin. In the case f slar generatin, the determinatin f sufficient land t accmmdate the prpsed installatin is an engineering analysis based n the capability f slar panels prpsed, the slar panel arrangement, and the gegraphical site lcatin. Similarly, land needed fr a wind generatin installatin is als calculated based n the size and lcatin f the wind turbine. If PJM receives an intercnnectin request that des nt prvide a site plan f the prpsed facilities alng with accmpanying infrmatin t determine adequate land space, the request will be deemed deficient by PJM. Fr example, an intercnnectin request received fr a 25 MW slar installatin n ne acre f land is deficient because it is nt technically feasible t prduce that much utput with that amunt f land. In this case, PJM will ask that the custmer prvide evidence f the additinal site cntrl necessary t accmmdate the full level f pwer utput requested r require the custmer t reduce the prpsed utput t match the site area. In the event f a disagreement between PJM and the Intercnnectin Custmer, PJM will accept, a Prfessinal Engineer (PE) stamped site plan drawing (licensed in the state f the facility lcatin) that depicts the prpsed generatin arrangement and specified the Maximum Facility Output fr that arrangement. Failure t take ne f these measures will result in the queue request being terminated and withdrawn. 27

28 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Generatin Intercnnectin Requests Multiple requests behind the same Pint f Intercnnectin PJM perfrms all studies at the Pint f Intercnnectin (POI). Subdividing prjects int separate prjects behind the same POI des nt avid cst allcatin requirements nr des it eliminate material impact review requirements based n the ttal MW being prpsed at the POI. If multiple queue requests are made behind a single POI, as lng as they are made within the same queue, will be studied at the queue psitin f the latest queue request assciated with the facility(ies) being prpsed. PJM understands Tariff rules may require an additinal queue request t crrect increases t Maximum Facility Output if the initial submittal was in errr. As lng as the ttal utput at the POI des nt exceed the applicable criteria fr Tariff Part IV, Subpart G, PJM will treat the cmbined requests as a single submittal at the later queue psitin under the small generatin prcess. If the cmbined MW utput frm the tw requests exceeds the applicable criteria fr Tariff Part IV, Subpart G, PJM will study the ttal utput at the later queue psitin under the large generatin prcess. If multiple prjects are behind the same POI, as indicated abve, the cst respnsibility will be determined based n the maximum cmbined pwer injected at the POI. Additinally, if ne f multiple prjects withdraws frm the queue, the materiality requirements based n the withdrawal will apply t the remaining prjects behind the POI. If material, the ther queue psitins will slide t the next queue. Fuel Change An Intercnnectin Request is fr a specific prject and includes the fuel type specified by the requestr n the intercnnectin request agreement. A change f fuel type fr all r a prtin f an existing intercnnectin request will require the Develper t submit a new intercnnectin request. Fr example, if a Develper wuld like t cvert 20 MWs f a 100 MW slar facility t battery strage, then the first queue psitin fr the slar prject must be reduced by 20 MW and a new 20 MW intercnnectin request fr the battery strage must be submitted. The rules fr multiple queue requests behind the same Pint f Intercnnectin apply Requests Requiring Attachment N As determined by Exhibit 1 f this manual, a New Service Request that is required t submit Attachment N shall include at a minimum the infrmatin listed belw: A descriptin f the prject lcatin including street address and glbal psitining crdinates A map depicting the prperty bundaries and the prpsed generatin facilities lcatin(s) The generatr s capability (Maximum Facility Output in MW and, if desired, the amunt f MW t be evaluated as a Capacity Resurce) Fuel type(s) (e.g. natural gas, wind, slar etc.) One line diagram shwing prpsed equipment cnfiguratin Data as required t cmplete (refer t Attachment F f this manual) 28

29 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Prf f right t cntrl the site fr the prpsed prject Anticipated in-service date Nte: The in-service date must be n mre than 7 years frm the date the Intercnnectin Request is received by the Transmissin Prvider, unless it is demnstrated that engineering, permitting r cnstructin f the prject will exceed this perid. The depsit based n the maximum f either the Capacity r Energy values requested. Depsit amunts are discussed in sectin f this manual Requests Requiring Attachment Y As determined by Exhibit 1 f this manual, a New Service Request that is required t submit an Attachment Y Frm f Screens Prcess Intercnnectin Request which shall include at a minimum the infrmatin listed belw: Intercnnectin Custmer Infrmatin A descriptin f the prject lcatin including street address and glbal psitining crdinates The generatr s capability Prf f Certificatin f the generatr and the generatr s cmpnents Fuel type(s) (e.g. natural gas, wind, slar etc.) Anticipated in-service date Energy Resurce Infrmatin as required in Attachment Y Energy Resurce Characteristic Data (fr inverter-based machines) as required in Attachment Y Depsit. Depsit amunts are shwn in Table 3-2: Small Generatin Intercnnectin Prcess depsit requirements (Intercnnectin Requests f 2MW r less) and Table 3-1: Small Generatin Intercnnectin Prcess depsit requirements (Intercnnectin requests f 2 20MW) Site cntrl per Attachment Y, sectin 8 Diagrams as required per Attachment Y, sectin 8. Attachment Y applicatins are nly applicable t a FERC jurisdictinal intercnnectin (refer t sectin 1.2). If an Attachment Y is received fr an intercnnectin that is determined t be nn-ferc jurisdictinal, the Tariff prcesses cannt be used fr intercnnecting the prpsed facilities, and the Tariff screens prcess des nt apply. Fr nn-jurisdictinal requests, PJM will study fr impacts t the Transmissin System and issue a whlesale market participatin agreement. It is up t the custmer t meet the nn-ferc entity s intercnnectin requirements. Fr FERC jurisdictinal requests, in rder t be accepted and prcessed as an Attachment Y under the Tariff screens prcess, the prpsed generatin must meet the applicable Tariff utput requirements and meet the certificatin requirements f Attachments Z and AA f the Tariff. 29

30 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess The Generatin Intercnnectin Custmer must prvide an adequate ne-line diagram and site plan fr their generatin facility. Demnstratin f site cntrl per Manual 14A Sectin is als required in rder t be cnsidered a valid intercnnectin request. Nte: Small Generatin Intercnnectin Queue Submittal Requests submitted under Attachment Y are evaluated using a screens prcess as referenced in sectin f this manual Requests Requiring Attachment BB As determined by Exhibit 1 f this manual, a New Service Request that is required t submit Attachment BB, Frm f Intercnnectin Service Agreement fr Certified Inverter-Based Generating Facility, shall include at a minimum the infrmatin listed belw: Intercnnectin Custmer Infrmatin A descriptin f the prject lcatin including street address r glbal psitining crdinates The generatr s capability Prf f Certificatin f the generatr and the generatr s cmpnents Fuel type(s) (e.g. natural gas, wind, slar etc.) Anticipated in-service date Small Inverter Facility Infrmatin Fees. There is a nn-refundable prcessing fee f $500 Site cntrl dcumentatin Attachment BB applicatins are nly applicable t a FERC jurisdictinal intercnnectin (refer t Sectin 1.2). If an Attachment BB is received fr an intercnnectin that is determined t be nn-ferc jurisdictinal, the Tariff prcesses cannt be used fr intercnnecting the prpsed facilities, and the Tariff screens prcess des nt apply. Fr nn-jurisdictinal requests, PJM will study fr impacts t the Transmissin System and issue a whlesale market participatin agreement. It is up t the custmer t meet the nn-ferc entity s intercnnectin requirements. Fr FERC jurisdictinal requests, in rder t be accepted and prcessed as an Attachment BB under the Tariff screens prcess, the prpsed generatin must meet the applicable Tariff utput requirements and meet the certificatin requirements f Attachments Z and AA f the Tariff. The Generatin Intercnnectin Custmer must prvide an adequate ne line diagram and site plan fr their generatin facility. Demnstratin f site cntrl per Manual 14A Sectin is als required in rder t be cnsidered a valid intercnnectin request Merchant Transmissin Facilities Requests Attachment S Develpers requesting t build, wn, and perate Merchant Transmissin Facilities intercnnected t the PJM system must cmplete Attachment S Upgrade Requests Attachment EE Transmissin Intercnnectin Custmers 30

31 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Develpers that seek t request increased capability f existing Transmissin Owner facilities r seek t accelerate a PJM bard apprved RTEP upgrade must cmplete Attachment EE Upgrade Custmers Develpers that seek Incremental Auctin Revenue Rights per Tariff Attachment K, Appendix Sectin 7.8 must submit Attachment EE Generatin and Transmissin Intercnnectin Feasibility Study Cst Respnsibility As specified in Part IV, Subparts A and G f the Tariff, a party wishing t cnnect a new generatin resurce r a new transmissin facility t the PJM system must submit an Intercnnectin Request in the frm f an executed Generatin r Transmissin Intercnnectin Feasibility Study Agreement (Tariff at Part VI, Attachment N r Attachment S, respectively) and a study depsit as specified in the table belw (Table 2-1-1). The amunt f the depsit is specified in accrdance with the size, in MW, as well as the timing f receipt f the Intercnnectin Request. Refer t Sectin 3 f this Manual 14A fr further details regarding the intercnnectin prcess fr small resurces f 20 MW r less. PJM will hld 10% f every depsit as nn-refundable. The nn-refundable prtin is held t ffset restudy csts assciated with a Develpers decisin t withdraw a prject frm the queue. If an Intercnnectin Custmer des nt withdraw its prject, the nn-refundable depsit will becme refundable after cmmencement f cmmercial peratins. 90% f the depsit is used t fund the Intercnnectin Request prcessing, deficiency review, study csts. If the cst f the Generatin r Transmissin Intercnnectin Feasibility study is reasnably freseen t exceed the standard depsit listed belw fr the Intercnnectin Request befre the study begins, PJM will require the Develper t pay the additinal depsit (see Table belw fr expected additinal csts by Transmissin Owner zne). The additinal depsit will be added twards the refundable prtin. The refundable prtin shall be transferable t subsequent studies r cnstructin phases assciated with the individual Intercnnectin Request. The Develper is bligated t pay the actual csts f studies cnducted by PJM n its behalf. Table 2-1-1: Large New Services Request Prcess depsit requirements Mnth f New Services Queue st th 1-4 Depsit Requirement Prtin held as nnrefundable Maximum depsit fixed depsit Per MW prtin f depsit $10,000 $100 10% $110,000 5 th $20,000 $150 10% $120,000 6 th $30,000 $200 10% $130,000 Nte: The per MW value is the maximum f the Capacity r Maximum Facility Output requested. 31

32 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess If a Develper submits an Attachment N r S in any f the znes listed abve, if the standard Tariff depsit is less than the amunt shwn in the table, the Develper shall prvide PJM the difference between the value in Table belw and the standard Tariff depsit. If a Transmissin Owner zne is nt n the table, then PJM expects the standard Tariff depsit will cver the Feasibility Study csts. Nte hwever, that a Develper is respnsible fr actual csts f the study and actual csts may exceed the expected amunt. Table 2-1-2: Large New Services Request Prcess expected csts Transmissin Owner Zne Expected Csts AEP 26K BGE 15K CmEd 15K Daytn 13K Dminin 12K Duquesne 19K FirstEnergy 23K AEC/DPL/Pepc 12K PPL 20K PSEG 17K The remaining refundable prtin f a depsit shall be transferable t subsequent studies assciated with the individual Intercnnectin Request r refunded t the Develper. See belw fr an example f the cst fr an Intercnnectin Request. Example: An Intercnnectin Custmer submits a request fr intercnnectin f a 40 MW facility during the first mnth f the queue perid. The Feasibility Study depsit, example cst, and available mney t refund r transfer wuld be as fllws: Fixed depsit: $10,000 Per MW depsit: $4,000 Ttal depsit: $14,000 (T be submitted as a single payment) 10% prtin held as nn-refundable depsit: $1,400 Refundable prtin: $12,600 Actual Deficiency Review and Study csts: $5,451 Amunt available fr refund r transfer t subsequent study: $7,149 32

33 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess New Service Request deficiency reviews As identified in sectin 2.1.2, a Queue Psitin is assigned nce all the requisite infrmatin and depsit is prvided t PJM. Assignment f the Queue Psitin assures the Develper queue pririty, but des nt mean that the request is valid. Intercnnectin Request validity is determined by a deficiency review. If the Intercnnectin Request is missing infrmatin, is deficient, r if the Develper wes mney frm prir New Service Requests, PJM will issue a deficiency ntificatin t the Develper within five business days frm receipt f the initial Intercnnectin Request. In additin t site cntrl, data, and depsits, PJM will cnsider the reasnableness f the planned in-service date stated in the Attachment N request. Any request fr in-service in advance f the Tariff prescribed study perid is unreasnable. Fr any generatin intercnnectin request, the in-service date must be after the Tariff due date fr the System Impact Study reprt plus the credible cnstructin schedule. Nte that prpsed in-service will be mdified during the study phase as required t accmmdate netwrk upgrades. Upn PJM issuing the deficiency ntificatin, the Develper has 10 business days t prvide the missing/ deficient infrmatin and/r mney. If any required infrmatin, including site cntrl, required fr a Queue Psitin t be assigned is missing frm the initial Intercnnectin Request submittal, a Queue Psitin will nt be assigned until that infrmatin is received. An Intercnnectin Custmer must be assigned a Queue Psitin and have the Intercnnectin Request determined t be valid prir t the clse f the relevant New Services Queue. Any Queue Psitin that is deficient after the clse f the relevant New Services Queue shall be terminated and withdrawn. T ensure a prject has the maximum amunt f time t cure th deficiencies, Develpers must submit their Intercnnectin Requests prir t the 15 th business day prir t the end f the 6 mnth f the queue windw. Any Intercnnectin th th Request received after the 5 business day prir t the end f the 6 mnth f the queue windw will inherently have n deficiency cure perid capability available, and therefre shall be autmatically terminated and withdrawn if it is fund by PJM t be deficient. The Transmissin Prvider is affrded an additinal five (5) business days t review each Intercnnectin Custmer s deficiency ntificatin respnse. Any Queue Psitin fr which an Intercnnectin Custmer has nt cleared the deficiencies befre the clse f the relevant New Services Queue will be deemed terminated and withdrawn, even if the deficiency respnse perid fr such Queue Psitin des nt expire until after the clse f the relevant New Services Queue. If Intercnnectin Custmer s deficiency respnse is due n the last day f the queue windw and the Intercnnectin Custmer timely submits its deficiency respnse, PJM will engage in its additinal 5 business day review f such deficiency respnse. If PJM identifies remaining unsatisfied deficiencies, the Intercnnectin Request shall be terminated and withdrawn. The fllwing is prvided t illustrate hw the Transmissin Prvider s additinal five (5) business day review perid may run cncurrently with the Intercnnectin Custmer s ten (10) business day deficiency respnse perid: If the Intercnnectin Custmer respnds t the deficiency ntice n the third business day f the Intercnnectin Custmer s deficiency respnse perid, the Transmissin Prvider s additinal five (5) business day review perid will run in cnjunctin with the Intercnnectin Custmers verall ten business day respnse perid. In this example, if n the fifth business day f the Transmissin Prvider s additinal review perid (which wuld als be the eighth day f the Intercnnectin Custmer s deficiency respnse perid) the Transmissin Prvider identifies remaining, unsatisfied deficiencies in the Generatin Intercnnectin Request, the 33

34 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Intercnnectin Custmer wuld have tw remaining business days t clear such deficiencies befre the Intercnnectin Custmer s deficiency respnse perid expired. Hwever, if, fr example, the Intercnnectin Custmer respnds t the deficiency ntice n the eighth business day f the Intercnnectin Custmer s deficiency respnse perid, the Transmissin Prvider s additinal five (5) business day review perid will run in cnjunctin with the Intercnnectin Custmers verall ten business day respnse perid. In this example, if n the fifth business day f the Transmissin Prvider s additinal review perid (which wuld be three business days after the Intercnnectin Custmer s deficiency respnse perid expired) the Transmissin Prvider identifies remaining, unsatisfied deficiencies in the Generatin Intercnnectin Request, the Generatin Intercnnectin Request wuld be deemed t be terminated and withdrawn since the Intercnnectin Custmer wuld nt be able t cure such deficiencies befre the Intercnnectin Custmer s deficiency respnse perid expired Changes t Existing Generatrs and Transmissin Facilities Transfer f wnership f existing generating units and transmissin facilities is nt subject t the intercnnectin queuing prcess unless pre-existing capacity intercnnectin rights fr the unit are nt transferred with the change in wnership. Owners f existing generating plants that plan increases in a plant s utput capability abve that specified in the generating plant s existing ISA must fllw the same prcedure as new generatin specified in the Tariff and the PJM Manuals. These prjects will be placed int the intercnnectin queue and will be evaluated under the same study prcedure as new generatin. Sme changes, such as imprvements t same-site units injecting at a cmmn pint, may be aggregated r cmbined. Such requests are determined n a case-by-case basis. Owners f existing generating plants that plan t retire r reduce the plant s utput capability must ntify PJM in rder t address capacity credit issues and any ptential PJM System ecnmic and/r reliability cncerns. After a generatr fficially ntifies PJM f retirement, system upgrades will be identified t reslve any reliability prblems assciated with the retirement. If the generatr subsequently withdraws the request fr retirement, PJM may cntinue t plan the system t accmmdate retirement f the generatr. The Capacity Intercnnectin Rights assciated with the retired r reduced plant utput capability may survive fr up t ne year fllwing the actual Deactivatin Date. (PJM Tariff at Part VI, Sectin 230.3) Owners f existing Merchant Transmissin Facilities that plan t retire r reduce the capability f a transmissin facility must ntify PJM in rder t address any ptential PJM System ecnmic and/r reliability cncerns Generatin and Transmissin Intercnnectin Feasibility Study Analysis and Results After a valid Generatin r Transmissin Intercnnectin Request is received, PJM assigns a System Planning Senir Cnsultant as the Team Leader t initiate and direct the implementatin f the Study phases f the Generatr and/r Transmissin Intercnnectin Prcess (see Attachment C fr PJM Generatin and Transmissin Planning Team Rle Clarity Diagram). Under the directin f the Team Leader, PJM staff, in crdinatin with any affected Intercnnected Transmissin Owner(s), will establish a time t hld a Scping Meeting as described in Sectin f the Tariff and the fllwing. The Intercnnectin Custmer is required t chse a primary Pint f Intercnnectin and als has the ptin t specify 34

35 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess a secndary Pint f Intercnnectin t be studied during the Generatin r Transmissin Intercnnectin Feasibility Study phase f the Intercnnectin Request, and als must identify ne Pint f Intercnnectin as the primary and the secnd as the secndary chice. The primary and secndary Pints f Intercnnectin will be studied as fllws: The primary Pint f Intercnnectin will be studied and the Generatin r Transmissin Intercnnectin Feasibility Study will fllw the requirements as set frth in the Tariff, Sectin 36.2 and this manual. The secndary Pint f Intercnnectin will receive a sensitivity analysis and this will be included in the Generatin r Transmissin Intercnnectin Feasibility Study. This sensitivity analysis will include definitin f the verlads and n estimated csts. The decisin as t the designatin f the primary and secndary Pint(s) f Intercnnectin must be cmmunicated t PJM and the Intercnnected Transmissin Owner(s) prir t cmpleting the Scping Meeting. If the Intercnnectin Custmer fails t prvide these designated ptins (primary r primary and secndary Pint f Intercnnectin) prir t cmpletin f the Scping Meeting, PJM shall cnsider the Intercnnectin Request as deficient, as described fr ther cases f deficiency f an Intercnnectin Request in the Tariff, Sectin , and will prcess the Intercnnectin Request in accrdance with the Tariff, Sectin Fllwing the Scping Meeting, PJM and the Intercnnected Transmissin Owner will cnduct the Generatin r Transmissin Intercnnectin Feasibility Study when n deficiencies exist fr an individual Intercnnectin Request. In general, the study will be cmpleted within 90 days during the next Feasibility Study Cycle. If this is nt pssible, PJM must s ntify the Develper and prvide an anticipated cmpletin date. PJM, in crdinatin with any affected Intercnnectin Transmissin Owner(s), shall cnduct Generatin and Transmissin Intercnnectin Feasibility Studies tw times each year (Tariff at Part VI, Subpart A, Sectin frmerly 36.2 and 41.2, in Part IV) fr cmpletin by: January 31, fr requests received during the six mnth perid ending September 30 f the preceding year. July 31, fr requests received during the six mnth perid ending March 31. The Feasibility Study assesses the practicality and cst f incrprating the generating unit r increased generating r transmissin capacity int the PJM system. The analysis is limited t shrt-circuit studies and lad-flw analysis. This study des nt include stability analysis. The study als fcuses n determining preliminary estimates f the type, scpe, cst and lead time fr cnstructin f facilities required t intercnnect the prject. Results f the study fr the requested intercnnectin service (Capacity Resurce r Energy Resurce) are prvided t the Develper and the affected Intercnnectin Transmissin Owners, and are published n the PJM web site. Cnfidentiality f the Develper is maintained in these reprts, but the lcatin f the prject and size (in megawatts) is identified. After reviewing the results f the Generatin r Transmissin Intercnnectin Feasibility Study, the Develper must decide whether r nt t pursue cmpletin f the System Impact Study. Each New Service Request is studied n a summer peak RTEP base case with the case year dependent n the New Services Queue under study. PJM will identify the base case year t be used in the study f a specific queue n its website. Bth lad flw and shrt circuit cases will use the same base case year. In sme cases, depending upn the age f the study, versins 35

36 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess f the mdels t study the New Service Request may n lnger be available t use fr certain vintage cases. As this ccurs, PJM may need t evaluate the New Service Request n a different year case in rder t maintain the ability t prperly represent the prpsed custmer facilities. All active New Service Requests, are mdeled in the lad flw case as apprpriate. Generally, Netwrk Upgrades identified fr previusly cmpleted studies are nt mdeled in the lad flw case s that later queued prjects can receive cst allcatin, assuming they meet the cst allcatin threshlds (see Attachment B). The exceptin t this is that if a Netwrk Upgrade changes the tplgy f the system which then requires utilizatin f the Netwrk Upgrade t ensure new flw patterns are addressed. These tplgy changes require that a study be cnducted with and withut the individual upgrade which causes a change in the tplgy. Fr shrt circuit studies, all upgrades which mdify tplgy and any upgrades with impedance changes t the equipment are mdeled in the riginal study case. The lad flw feasibility study is a DC cntingency analysis, NERC P0, P1, P2, P4, P5 & P7 cntingencies are tested (see Generatr Deliverability sectin f Manual 14B). Each New Service Request in the Feasibility Study phase will be assigned a cmmercial prbability, currently 53%, based n histrical data. All prjects in the New Services Queue will be studied as a grup. The shrt circuit Feasibility Study is a breaker duty analysis during which each New Service Request is studied sequentially. N cst allcatin fr any identified Netwrk Upgrade will be perfrmed during the Feasibility Study fr lad flw and shrt circuit analyses. Any newly identified facility r breaker will be reprted; fr cntributins t previusly identified thermal verlads r ver-dutied breakers, the prject must meet cst allcatin rules specified in Attachment B f this manual. Generatin Intercnnectin Requests that are 20 MWs r less, r fr increases in capability f 20 MW r less fr existing generatin, are gverned by Subpart G f Part IV f the Tariff and sectin 3 f this manual. The Transmissin Prvider will crdinate with Affected System Operatrs the cnduct f any study required t determine the impact f a New Service Request n any Affected System as set frth in Sectins 202 and 218 f the Tariff. During the Feasibility Study prcess, an Affected System will be ntified f a ptential impact fr any individual intercnnectin request, generatin r merchant transmissin, under study that has 3% distributin factr (abslute value), 10% distributin factr (abslute value) fr 500 kv and abve facilities. The Affected System will als be ntified fr any Lng Term Firm Transmissin Service Request under study that has 3% distributin factr (abslute value) fr all facilities. The Ntificatin includes the ptential impact, base case year, size in MWs, fuel, Pint f Intercnnectin and study phase Intercnnectin Requests assciated with Phase Angle Regulatrs Phase angle regulatrs (PAR), als called phase shifting transfrmers, create a phase shift between primary (surce) & secndary (lad) side f the device t cntrl the amunt f flw thrugh the facility. These devices may be prpsed t serve as Cntrllable A.C. Merchant Transmissin Facilities under the Tariff. Inherent t these devices are certain peratinal characteristics which must be addressed t cnfirm acceptability f the design and incrpratin f the prpsed facility in the PJM system. 36

37 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess In rder t ensure that the facility des nt cause excessive upset t the system in the area f the prpsed facility, it is recmmended that the initial step size f the facility s utput nt exceed a quantity f 20MWs, when initially transitining frm zer flw t sme specified MW value. Initial utput quantities in excess f 20 MWs are studied t determine the impacts t the ther facilities near the prpsed facility t determine if the initial MW quantity, in excess f 20 MWs, wuld cause a prblem t ccur. The study f the impacts assciated with this initial step size will begin during the System Impact Study phase f the prjects develpment. If any issues are identified, assciated with a step size in excess f 20 MWs, which cannt be reslved, then the custmers Intercnnectin Request will be withdrawn frm the New Services Queue. The cntrls assciated with a PAR must be capable f prviding autmatic cntrl s that the scheduled MW quantity fr the facility is maintained fr all cntingency cnditins which are required t be tested dependent n the type f service requested whether it be capacity r energy injectin r firm r nn-firm withdrawal rights. Deviatins frm the scheduled MW quantity can result in charges t the facility as gverned by PJM market rules. Beynd autmatic cntrl f the facility, the prpsed facility cntrls must allw fr a manual mde f peratin t hld the angle f the PAR as ppsed t maintaining the MW flw in the event this mde f peratin is requested by PJM Operatins during perids f system upset r emergency. Additinally, the prpsed custmer facility must be capable f achieving zer flw thrugh the design f the facility by the custmer. 2.2 Generatin and Transmissin Intercnnectin System Impact Study Agreement Executin and Analysis Impact Study Agreement and Cst After receipt f the Generatin r Transmissin Intercnnectin Feasibility Study results, if the Develper decides t prceed, an executed System Impact Study Agreement must be submitted t PJM with the required depsit as specified in Sectin 204.3A f the Tariff. If the cst f the System Impact study is reasnably expected t exceed the depsit received befre the study begins, PJM will require the Develper t submit the additinal depsit. Fr an Intercnnectin Request t maintain its assigned pririty, the Develper must execute and return the System Impact Study Agreement (and the required depsit), as well as cmplete the System Impact Study data frm lcated n PJM s web site. See Attachment G in this manual fr a list f the data required t cmplete this frm) within 30 days f receiving the System Impact Study Agreement. If a New Service Custmer fails t meet this deadline, the Intercnnectin Request will be deemed terminated and withdrawn. In general, the study will be cmpleted within 120 days f the date the study begins. If this is nt pssible, PJM must s ntify the Develper, prviding an anticipated cmpletin date and an explanatin f why additinal time is needed. Fr generatin prjects, prf is required at this pint f initial applicatin fr required air permits, if any, and the Develper must declare whether a generatin prject is t be cnnected as a Capacity r Energy Resurce. Fr Merchant Transmissin Facilities, site cntrl must be prvided with the System Impact Study Agreement. The System Impact Study is a cmprehensive reginal analysis f the impact f adding the new generatin and/r transmissin facility t the system and an evaluatin f their impact n deliverability t PJM lad in the particular PJM regin where the generatr and/r new 37

38 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess transmissin facility is lcated. This Study identifies the system cnstraints relating t the prject and the necessary Attachment Facilities, Lcal Upgrades, and Netwrk Upgrades. The Study refines and mre cmprehensively estimates cst respnsibility and cnstructin lead times fr facilities and upgrades. Table 2-2-1: System Impact Study csts Prject size Required depsit Fixed prtin Per MW Prtin Prtin f depsit that is nn-refundable Nne $500/MW 10% $300,000 2MW and 20MW $10,000 Nne 10% $10,000 <2MW Nne 10% $5,000 >20MW $5000 Maximum depsit If a Develper submits an Attachment N-1 in any f the znes listed in Table belw and the standard Tariff depsit is less than the amunt shwn in the table, the Develper shall prvide PJM the difference between the value in Table and the standard Tariff depsit. If a Transmissin Owner zne is nt n the table r the value indicates bunded, then PJM expects the standard Tariff depsit will cver the System Impact Study csts. Nte hwever, that a Develper is respnsible fr actual csts f the study and actual csts may exceed the expected amunt. Table System Impact Study PJM Expected Csts TO Zne Expected Cst ($)Requests > 20 MW Expected Cst ($)Requests 20 MW AEP 46K 16K BGE 50K Bunded CmEd 99K 32K Daytn 25K Bunded DL 23K Bunded Dminin 26K 15K FE 42K 16K PECO 17K Bunded PHI 28K 15K PPL 31K Bunded 38

39 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess TO Zne Expected Cst ($)Requests > 20 MW Expected Cst ($)Requests 20 MW PSEG 38K Bunded Dynamic Mdel fr stability studies PJM utilizes manufacturer mdels t ensure the perfrmance f turbines is prperly captured during the simulatins perfrmed fr stability verificatin and, where applicable, fr cmpliance with lw vltage ride thrugh requirements. Turbine manufacturers prvide such mdels t their custmers. The list f manufacturer mdels PJM has already validated is cntained in Attachment G t this Manual. Manufacturer mdels may be updated frm time t time, fr varius reasns such as t reflect changes t the cntrl systems r t mre accurately represent the capabilities turbines and cntrls which are currently available in the field. Additinally, as new turbine mdels are develped, turbine manufacturers prvide such new mdels which must be used in the cnduct f these studies. PJM needs adequate time t evaluate the new mdels in rder t reduce delays t the System Impact Study prcess timeline fr the Intercnnectin Custmer as well as ther Intercnnectin Custmers in the study grup. Therefre, PJM will require that any Intercnnectin Custmer with a new manufacturer mdel must supply that mdel t PJM, alng with a $10,000 fully refundable depsit, n later than three (3) mnths prir t the starting date f the System Impact Study (See Sectin belw fr starting dates) fr the Intercnnectin Request which shall specify the use f the new mdel. The Intercnnectin Custmer will be required t submit a cmpleted dynamic mdel study request frm (Attachment G-1 f Manual 14A) in rder t dcument the request fr the study System Impact Study Analysis and Schedule Relatinships are studied between the new generatr r the new transmissin facility, ther planned new generatrs in the queue, and the existing system as a whle. This study als encmpasses an analysis f existing firm and nn-firm Transmissin Service requests. PJM, in crdinatin with any affected Intercnnectin Transmissin Owner(s), shall cnduct System Impact Studies tw times each year (Tariff at Part VI, Sectin frmerly and , in Part IV) cmmencing n: May 1, fr requests received during the six mnth perid ending September 30 f the preceding year. Nvember 1, fr requests received during the six mnth perid ending March 31 f the same year. PJM may decide t grup tw r mre intercnnectin requests within ne System Impact Study if the prpsed prjects are in electrical prximity. In situatins where mre than ne generatin prject vilates reliability criteria, cst respnsibility fr netwrk upgrades t mitigate such vilatins will be allcated amng the prjects in the curse f the System Impact Study. The System Impact Study includes AC pwerflw analysis, shrt circuit analysis, and stability analysis. The pwerflw analysis can include different sets f analyses at varius lad levels such as summer peak, light lad, and winter peak. All pwerflw analysis is perfrmed cnsistent with PJM Reliability Planning Criteria as described in PJM Manual 14B Attachment D. 39

40 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Similarly, the stability analysis can include different sets f analyses at varius lad levels such as summer peak, light lad, and winter peak. During the System Impact Study phase f a prject, PJM will cnsider Affected Systems as set frth in Sectins 202 and 218 f the Tariff. PJM will again cntact Affected Systems, previusly identified as having ptential fr impacts frm the PJM prjects under study during the Feasibility Study phase, t determine if the Affected System has determined that any impacts t the Affected System need t be identified in the System Impact Study t the PJM custmer and any need fr Affected System reinfrcements. The prcess fr next steps assciated with these reinfrcements vary depending upn the Affected System s prvisins and will be discussed with the New Service Custmer t determine any requirements which must be adhered t in the Affected System study prcess. Failure t adhere t the requirements f the Affected System study prcess will result in the PJM custmer being withdrawn frm the PJM queue. Varius types f thermal analysis will be perfrmed based n the type f prject and its anticipated ptential t affect the system. A brief discussin f these studies fllws. Summer Peak Analysis The PJM Generatin Deliverability test is a test perfrmed in accrdance with PJM Manual 14B, sectins and Attachments C.6 and C.7. New Service Requests are subject t the PJM Generatin Deliverability Test as applicable. The PJM Lad Deliverability test is a test perfrmed in accrdance with PJM Manual 14B, sectins and Attachments C.3 and C.4 and C.5. The fllwing New Service Requests are subject t the PJM Lad Deliverability test: 1) Strage type Generatin Intercnnectin Requests, depending n size and input f an affected Transmissin Owner, 2) Transmissin Intercnnectin Requests requesting Firm Transmissin Withdrawal Rights, and 3) requests fr Incremental Capacity Transfer Rights arising frm a New Service Request as set frth in Attachment F f Manual 14E. NERC P3 and P6 N-1-1 analysis is perfrmed in accrdance with PJM Manual 14B, sectin New Service Requests are subject t N-1-1 analysis as applicable. Such applicable examples can include but are nt limited t a Generatin Intercnnectin Request that wuld change system tplgy, a Transmissin Intercnnectin Request requesting Firm Transmissin Withdrawal Rights r Firm Transmissin Injectin Rights, a Firm Pint-t-Pint Transmissin Service Request, r any New Service Request which changes the system tplgy due t its required Netwrk Upgrades. Vltage analysis is perfrmed in accrdance with PJM Manual 14B, sectin New Service Requests are subject t steady-state vltage analysis as applicable. Light Lad Analysis The light lad reliability analysis tests the ability f an electric area t exprt generatin resurces t the remainder f PJM during light lad cnditins. The initial target dispatch is identified as the light lad base case initial target dispatch in Manual 14B, Attachment D-2. It shuld be nted that the initial dispatch must meet the current lad requirement f the case and therefre additinal resurces may need t be dispatched, e.g. natural gas facilities, if the ther facilities in an area cannt meet the scheduled lad. Due t the nature f the ptential t change the initial dispatch assumptins, in the event that a certain type f facility is dispatched in the initial target dispatch, PJM shall dispatch all New Service Requests, with the same fuel type and same TO area as in the riginal dispatch, during the ramping prtin f the studies t determine 40

41 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess any new vilatins. Transmissin Intercnnectin Requests (Firm Transmissin Rights nly) and Lng Term Firm Pint-t-Pint Transmissin Service requests are als included in the light lad reliability analysis fr New Service Request studies. The cntingencies used fr light lad reliability analysis include NERC TPL categry P1, P2, P4, P5, and P7. NERC TPL P0, nrmal system cnditins is als studied. The Generatin Deliverability Test perfrmed during light lad reliability analysis is perfrmed in accrdance with PJM Manual 14B, sectin and Attachments C.6 and C.7, except the ramping limits in Attachment D-2 f Manual 14B are enfrced. Light Lad Cmmn Mde Outage Prcedure This prtin f the test is similar t the Generatr Deliverability test listed in Addendum 2 f sectin C.7.3 f PJM manual 14B, except the ramping limits in Attachment D-2 f PJM manual 14B are enfrced. Any new verlad caused by a New Service Request under study is reprted. A New Service Request that cntributes t the lading f an existing verlad is reprted if that New Service Request increases the lading by at least 1% and cntributes at least 5MWs r has at least a 5% distributin factr. The prcedure t determine cst allcatin fr Light Lad Analysis assciated with New Service Requests is similar t the methds used fr Summer Peak Lad Flw Analysis set frth in Attachment B f this PJM manual 14A. Winter Peak Analysis The winter peak reliability analysis tests the ability f an electric area t exprt generatin resurces t the remainder f PJM during winter peak cnditins. The winter peak analysis is perfrmed during the System Impact Study phase f the PJM Intercnnectin Prcess. The facility ratings used in the winter peak analysis are different than the summer peak analysis. Further details abut the facility ratings can be fund in sectin f the PJM Manual 14B. The cntingencies used during this analysis include, NERC categry P1, P2, P3, P4, P5, P6, and P7. NERC categry P0, nrmal system cnditins will als be studied. The winter peak study initial target dispatch and ramping limits are listed in Attachment D-3 f PJM manual 14B. The different types f test perfrmed during winter peak analysis include Generatin Deliverability Test, Lad Deliverability test, Nrmal System (NERC P0) and N-1 (NERC P1) Events, and N-1-1 (NERC P3 and P6) Events. Further infrmatin abut these tests can be fund in sectins D t D f Attachment D-3 t PJM manual 14B. Shrt Circuit Analysis All New Service Requests are subject t evaluatin as t the need fr shrt circuit analysis. Certain types f New Service Requests may nt require analysis fr shrt circuit impacts as the impacts were already captured in the studies assciated with the intrductin f the generatin, e.g. Transmissin Service Request studies. The case year used fr the study f the fault cntributins assciated with a New Service Request shall be cnsistent with the case used in the thermal analysis studies, e.g. summer, peak, light lad, etc. Shrt circuit analysis shall be perfrmed cnsistent with the requirements f sectin G.7 f Attachment G t PJM manual 14B. Stability Analysis All New Service Requests are subject t evaluatins as the need fr stability analysis and/ r review which will be perfrmed during the System Impact Study phase. Fr Generatin Intercnnectin Requests a threshld f 20 MW is cnsidered when determining if a stability 41

42 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess analysis is required n a generic basis, thugh in areas with knwn stability cncerns, generatin with lwer ttal capability may als be tested. Stability analysis is perfrmed as described in PJM Manual 14B Attachment G System Impact Study Results Results f the study are prvided t all Develpers wh had prjects evaluated in the study and t affected Intercnnected Transmissin Owners and are psted n the PJM web site. While cnfidentiality bligatins will be hnred, the identity f the Develpers will nt be cnsidered cnfidential in these reprts. The identity f all Develpers, the size and the lcatin f prjects fr which System Impact Studies have been cmpleted are published n the PJM web site. After reviewing the results f the study, the Develper must decide whether r nt t prceed with either the PJM prpsed (i) a Generatin r Transmissin Intercnnectin Facilities Study r (ii) an Intercnnectin Service Agreement r Upgrade Cnstructin Service Agreement, whichever is furnished by PJM. If the Develper decides t prceed with the prject, the results f the System Impact Study are als rlled int the RTEP Prcess fr develpment f the RTEP t be submitted t PJM s Bard f Managers fr apprval. 2.3 Generatin and Transmissin Intercnnectin Facilities Study Agreement Executin and Analysis Queue Pririty and final agreement issuance and determinatin f security requirements fr mving ut f sequence The Tariff establishes due dates fr PJM t issue Feasibility and System Impact Studies. Hwever, upn cmpletin f a Facilities Study, queue pririty becmes imprtant fr issuing f final agreements t New Service Custmers. New Service Custmers that are first t cause the need fr netwrk upgrades will receive their service agreements befre thse custmer(s) that receive cst allcatins. T prevent a lwer rdered queue request (r any queue request with cst allcatin) frm having t cmmit t agreements and ptential unexpected csts withut the knwledge f the higher rdered queues decisin, PJM will delay the issuing f final agreements fr affected prjects by apprximately ne week. This allws time t rescind and restudy the affected lwer rdered queue prjects if the higher rdered prject is withdrawn frm the queue. If a lwer rdered queue wishes t prceed ahead f a higher rdered queue fr which it shares cst respnsibility r may becme respnsible fr an upgrade, then the lwer rdered queue must prvide Security and/r advance cnstructin fr all shared r required upgrades Generatin and Transmissin Intercnnectin Facilities Study Agreement Upn cmpletin f the System Impact Study, PJM will furnish either (i) a Generatin and/r Transmissin Intercnnectin Facilities Study Agreement t the Develper, alng with estimated cst f the study and the estimated time f cmpletin r (ii) an Intercnnectin Service Agreement r Upgrade Cnstructin Service Agreement. Fr an Intercnnectin Request t maintain its assigned pririty, the Develper must execute and return the Generatin and/r Transmissin Intercnnectin Facilities Study Agreement (and the required depsit) within 30 days f receiving it. If a Develper fails t meet this deadline, the Intercnnectin Request will be deemed terminated and withdrawn. If the Develper has received an Intercnnectin Service 42

43 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Agreement r Upgrade Cnstructin Service Agreement, please see discussin in Sectin 4 f this manual fr additinal infrmatin. The Generatin and/r Transmissin Intercnnectin Facilities Study Agreement will prvide the estimated cst respnsibility and estimated cmpletin date fr the study. It may als define reasnable milestne dates that the prpsed prject must meet t retain its Queue Psitin while PJM is cmpleting the Generatin r Transmissin Intercnnectin Facilities Study. See Attachment D fr a General Descriptin f the Facilities Study Prcedure Generatin and Transmissin Intercnnectin Facilities Study Cst As specified in Part IV, Subparts A and B f the Tariff, if the Develper decides t prceed, the executed Generatin and/r Transmissin Intercnnectin Facilities Study Agreement must be returned accmpanied by the required depsit as specified in Sectin f the Tariff, and als listed in Table 2-3 belw. Table 2-3: Facilities Study csts Prject size >20MW Required depsit The greater f: $100,000 OR estimated amunt f Facilities Study cst fr the first three mnths >2MW and <20MW $50,000 <2MW $15, Generatin and Transmissin Intercnnectin Facilities Study Results During the Facilities Study phase, the System Impact Study results are retled as necessary t reflect changes in the New Services Queue such as but nt limited t New Service Custmers withdrawing frm the queue, reducing the size f their prjects, chsing different types f equipment, and prviding updated equipment parameters, etc. When cmpleted, the Generatin r Transmissin Intercnnectin Facilities Study will dcument the engineering design wrk necessary t begin cnstructin f any required transmissin facilities. The Generatin r Transmissin Intercnnectin Facilities Study will als prvide a gd-faith estimate f the cst t be charged t the Develper fr Attachment Facilities, Lcal Upgrades and Netwrk Upgrades necessary t accmmdate the prject and an estimate f the time required t cmplete detailed design and cnstructin f the facilities and upgrades. 43

44 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess 2.4 Types f Netwrk and Lcal Upgrades Netwrk Upgrades are mdificatins r additins t Tariff facilities that are identified during the study prcess which are required t accmmdate an intercnnectin prject. Lcal Upgrades are mdificatins r additins t nn-tariff facilities identified during the study prcess which are required t accmmdate an intercnnectin prject. In additin t Netwrk and Lcal Upgrades, there is a categry called Attachment Facilities, which are facilities required t physically intercnnect the Intercnnectin Custmer facilities t the system. In an Intercnnectin Study Reprt, Intercnnectin Service Agreement, and Intercnnectin Cnstructin Service Agreement, wrk t accmmdate an intercnnectin is separated int these three categries which are further defined belw: 1. Direct Cnnectin Lcal and Direct Cnnectin Netwrk Upgrades 2. Nn-Direct Cnnectin Lcal and Nn-Direct Cnnectin Netwrk Upgrades 3. Attachment Facilities These classificatins are imprtant in rder fr PJM t determine hw much Security shuld be held fr an Intercnnectin Custmer. As explained in Sectin 4.1.3, Security is held in rder t prtect the Transmissin Owner and ther New Service Custmers shuld the Intercnnectin Custmer decide t terminate the new service request after signing the Intercnnectin Service Agreement r fail t pay invices fr upgrade wrk. 1. Direct Cnnectin Lcal and Direct Cnnectin Netwrk Upgrades: Direct Cnnectin Lcal r Direct Cnnectin Netwrk Upgrades are greenfield prjects, which have n impact r ptential impact n the transmissin system until the final tie-in is cmplete. Direct Cnnectin upgrades includes new facilities that are required t intercnnect the Intercnnectin Custmer facilities t the existing transmissin system which will carry netwrk flws nce cmpleted and energized. These upgrades can be cnstructed withut requiring utages f existing, perating transmissin facilities. An intercnnectin switchyard (as shwn in the diagram belw) wuld be cnsidered a Direct Cnnectin Upgrade. Once energized, this switchyard will carry netwrk flws. 2. Nn-Direct Cnnectin Lcal r Nn-Direct Cnnectin Netwrk Upgrades: Nn-Direct Cnnectin Lcal r Nn-Direct Cnnectin Netwrk Upgrades are rebuilds, replacements, r upgrades t existing system facilities. These upgrades require a facility utage t be cnstructed. Upgrades t terminal equipment, rebuilding a line, r replacing a breaker are cnsidered t be Nn-Direct Cnnectin wrk. PJM will hld full security fr the cst f all Nn-Direct Cnnectin wrk in rder t prtect the Transmissin Owner and ther New Service Custmers shuld the Intercnnectin Custmer terminate their prject. 3. Attachment Facilities: Attachment Facilities are facilities required t physically intercnnect the Intercnnectin Custmer facilities t the system. Attachment Facilities d nt carry netwrk flws. A generatr lead line is an Attachment Facility as it nly carries pwer flw frm the generatr (see diagram belw). Attachment Facilities wrk can be cmpleted withut impacting the affected Transmissin Owner s facilities. Generally, a small prtin f an Attachment Facility 44

45 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess is wned by a Transmissin Owner. All Transmissin Owner wned Attachment Facilities are subject t Schedule E charges in an ISA (see M14A Sectin 4.1). Exhibit 2: Types f Netwrk and Lcal Upgrades 2.5 Transfer f Capacity Intercnnectin Rights Transfer f Capacity Intercnnectin Rights (CIRs) In rder fr the hlder f Capacity Intercnnectin Rights t transfer rights under Tariff sectin 230, the hlder f the rights must have cmpleted the fllwing: cnstructed all necessary system upgrades identified in the ISA r WMPA, and maintained the rights as required by the Tariff Transfer f CIRs Prir t cmmercial peratin 45

46 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess CIRs under study r CIRs frm an ISA that are assciated with a facility r unit(s) which has nt becme cmmercial are nn-transferrable. In these cases, the wner f the queue psitin can sell, r assign the queue prject t anther entity Transfer f CIRs frm an Operating Unit Fr existing Capacity Resurces that wish t transfer CIRs and that meet the requirements identified abve, a letter t PJM must be prvided by the assignr f the rights indicating the transfer amunt and t whm the rights are transferring. If the rights are nt being transferred at the same Pint f Intercnnectin, then the rights will be transferred thrugh studies perfrmed by PJM that will determine the ttal CIRs available at the new lcatin. The assignee f the rights must be able t meet all Tariff perating requirements. A new queue psitin is required fr PJM t verify that the unit receiving the rights is capable f meeting all requirements (e.g. pwer factr) at the new CIR level Transfer f CIRs frm a deactivated unit If the wner f an existing unit that is t be deactivated wants t transfer their rights t a new unit, they must submit a new queue request within ne year f deactivatin. Failure t submit a new queue request within ne year f the deactivatin will result in the lss f the CIRs. If the CIRs are transferred t anther wner, a letter t PJM must be prvided by the assignr f the rights indicating the transfer amunt and t whm the rights are transferring. A queue request frm the assignee f the CIRs must be received within ne year f the deactivatin f the transferring unit. If the rights are nt being transferred at the same Pint f Intercnnectin, then the rights will be transferred thrugh studies perfrmed by PJM that will determine the ttal CIRs available at the new lcatin CIR Transfer Prcess The fllwing prcesses will be fllwed t determine the amunt f CIRs which can be transferred frm an existing peratinal generatr, t an existing r new resurce in rder t increase r prvide CIRs t an existing r new resurce. In all cases the transfer f rights will require that the custmer r wner enter the New Services Queue with an Intercnnectin Request. Fr the study f the transfer f CIRs as it affects thermal cnstraints, all lad flw studies will be perfrmed in the queue t which the rights are t be transferred up t the Queue Psitin immediately preceding the prject which is seeking t receive the transferred rights (the generatr frm which the rights are t be transferred wuld be nline during these studies). PJM will then turn ff the generatr with the existing rights, make the unit unavailable fr dispatch, and then study the new Intercnnectin Request t determine the thermal impacts f the new Intercnnectin Request. This analysis will insure that any Capacity Intercnnectin Rights wned by the existing generatr will be used by the new Intercnnectin Request. Fr the Study f shrt circuit impacts t the system, studies will be perfrmed in rder t determine the impact n the increase in fault current fr all facilities assciated with any new Intercnnectin Request. Any reinfrcement(s) which are determined t be required fr the new generatr will be reviewed t determine if the existing generatr s cntributin causes the need fr the reinfrcement, and if the reinfrcement wuld nt be required if the existing unit was remved frm the study. The new Intercnnectin Request wuld nt be required t prvide reinfrcement t the system if the new Intercnnectin Request des nt cause the need fr the reinfrcement when the existing unit is remved. 46

47 Sectin 2: Generatin and Transmissin Intercnnectin Planning Prcess Fr the study f stability impacts t the system, the existing generatr wuld nt be dispatched during the study f the new Intercnnectin Request. 2.6 Wrk Papers The Tariff requires PJM t prvide New Service Custmers access t the applicable PJM base case data. Base case data is defined in Tariff t nly include upgrades and New Service Requests that are included in the RTEP. The custmer requesting the PJM base case data must first cmplete all necessary Critical Energy Infrastructure Infrmatin, Nn-Disclsure Agreements and ther requirements necessary t btain the mdeling infrmatin. Upn cmpletin f a study reprt, the Tariff prvides that PJM will prvide New Service Custmers wrk papers upn request. Wrk papers are dcuments, data, and ther infrmatin develped by PJM based n cnfidential dcuments, data r infrmatin frm PJM Members r New Service Custmers that were used in the develpment f each phase study and that PJM can make public upn cmpletin f a study under the requirements f Operating Agreement Generally, wrk papers include all files necessary fr a custmer t mdify the base case and duplicate the results btained by PJM in the queue studies. Other examples f wrk papers wuld be the initial and final limiting element and assciated ratings used in a study. Since a new service custmer is paying fr upgrades, they are entitled t the rating f the limiting element as rating infrmatin is imprtant t determining the financial rights that may be awarded. Wrk papers als can include infrmatin used t develp an upgrade cst. Hwever, if an upgrade cst was develped using a deskside estimate, n additinal detail is required t be generated. Fr example, if a recnductr was required fr a five mile line and was estimated based n past experience t cst abut $1M/mile, n further cst detail is required t be created. Wrk papers d nt include dcuments, data r infrmatin desired by an entity that were nt created by PJM r were nt used in the prductin f a study. 47

48 Sectin 3: Small Resurce Intercnnectin Prcess Sectin 3: Small Resurce Intercnnectin Prcess In this sectin yu will find the fllwing: A descriptin f the small resurce intercnnectin prcess (see Small Resurces (20 MW r less) ). Specific prvisins applicable t resurces f 10 MW r less (see Specific Prvisins fr Resurces f 10 MW r Less ). Specific prvisins applicable t resurces greater than 10 MW up t 20 MW (see Specific Prvisins fr Resurces Greater than 10 MW up t 20 MW ). 3.1 Small Resurces (20 MW r less) Pre-applicatin Prcess fr New Generatin Resurce Additins f 20 MW r Less r Additins t Existing Generatin Resurces Nt t Exceed 20 MW in Aggregated Maximum Facility Output The fllwing prjects may fllw the pre-applicatin prcess if selected by the ptential Intercnnectin Custmer: 20 MW r less and Cnnecting t FERC jurisdictinal facilities There are tw ptins fr the prspective Intercnnectin Custmer gathering infrmatin: Infrmal request f PJM cntact listed n PJM s website, where PJM cntact will utilize existing intercnnectin studies t prvide infrmatin r Frmal written request The prspective Intercnnectin Custmer must prvide electrical system infrmatin including relevant system studies, and ther materials useful t understanding the intercnnectin at a particular pint n the Transmissin Prvider s system with a frmal written request frm and a nn-refundable prcessing fee f $300. The Transmissin Prvider will evaluate whether the prpsed site s Pint f Intercnnectin will be n a FERC jurisdictinal facility within five (5) business days. If it is determined t nt be n a FERC jurisdictinal facility, the Transmissin Prvider will infrm the prspective Intercnnectin Custmer that the prpsed intercnnectin site is nt jurisdictinal and return any depsits submitted fr the pre-applicatin. If it is determined t be n a FERC jurisdictinal facility, Transmissin Prvider will prvide preapplicatin reprt t the prspective Intercnnectin Custmer within twenty (20) business days after the jurisdictinal determinatin. The pre-applicatin reprt prvided by the Transmissin Prvider is nn-binding, des nt cnfer any rights, and still requires the Intercnnectin Custmer t successfully apply t intercnnect t the Transmissin Prvider s system (Tariff at Part IV, Sectin 109) Small Generatin Intercnnectin Queue Submittal Requests fr the intercnnectin f new resurces which are 20 MW r less, r increases in capability f 20 MW r less t existing generatin (ver a 24 mnth perid) may be prcessed thrugh expedited prcedures. (Refer t Part IV, Subpart G f the Tariff.) Expedited prcedures 48

49 Sectin 3: Small Resurce Intercnnectin Prcess are defined in the Tariff fr five categries f these very small resurce additins; permanent Capacity Resurce additins f 20 MW r less, permanent Energy Resurce additins f 20 MW r less but greater than 2 MW (synchrnus) r greater than 5 MW (inverter-based), temprary Energy Resurce additins f 20 MW r less but greater than 2MW, permanent and temprary Energy Resurce additins f 2 MW r less (synchrnus) r 5 MW r less (inverterbased), and certified small inverter-based facility additins nt greater than 10 kw Study Requirements and Cst In all cases, with the exceptin f requests fr (i) intercnnectin falling under the prcess defined in the Tariff applicable t permanent and temprary Energy Resurce additins f 2MW r less and (ii) intercnnectin falling under the prcess defined in the Tariff applicable t certified small inverter-based facility additins n larger than 10 kw, an Intercnnectin Custmer must submit an Intercnnectin Request in the frm f an executed Generatin Intercnnectin Feasibility Study Agreement (Tariff at Part VI, Attachment N) and prvide the same infrmatin required fr larger resurces. Depsit requirements are listed in the table belw (Table 3-1-1) (Tariff at Part IV, Sectin 112). Further: Fr resurces f 2 MW r less (synchrnus) r 5 MW r less (inverter-based), an Intercnnectin Custmer must submit a cmpleted Frm f Screens Prcess Intercnnectin Request (Tariff at Part IV, Sectin 112A, Attachment Y). See table belw fr depsit requirements. Fr Certified Inverter-Based resurces n larger than 10 kw, an intercnnectin custmer must submit a cmpleted Frm f Intercnnectin Service Agreement fr Certified Inverter-Based Facility (Tariff at Part IV, Sectin 112B, Attachment BB) and a nn-refundable prcessing fee f $500. Table 3-1-1: Small Generatin Intercnnectin Prcess depsit requirements (Intercnnectin Requests fr a Capacity resurce 20 MW r a temprary Energy Resurce f 20 MW r less but greater than 2 MW (synchrnus) r up t 5 MW (inverter-based)) Mnth f New Services Queue st th 1-4 Depsit Prtin t be held as nn-refundable $10,000 10% 5 th $12,000 10% 6 th $15,000 10% If a Develper submits an Attachment N in any f the znes listed in Table belw, if the standard Tariff depsit is less than the amunt shwn in the table, the Develper shall prvide PJM the difference between the value in Table and the standard Tariff depsit. If a Transmissin Owner zne is nt n the table, then PJM expects the standard Tariff depsit will cver the Feasibility Study csts. Nte hwever, that a Develper is respnsible fr actual csts f the study and actual csts may exceed the expected amunt. 49

50 Sectin 3: Small Resurce Intercnnectin Prcess Table Feasibility Study Expected Csts fr Attachment N submitted Small Generatin Intercnnectin Requests Expected Csts ($) Transmissin Owner Zne AEP 16K FE 14K CmEd 12K PECO 11K Table 3-1-3: Small Generatin Intercnnectin Prcess depsit requirements (Intercnnectin Requests fr a new permanent r temprary Energy Resurce f 2MW r less (synchrnus) r up t 5 MW (inverter-based)) Mnth f New Services Queue st th 1-4 Depsit Prtin t be held as nn-refundable $2,000 10% 5 th $3,000 10% 6 th $5,000 10% The depsit assciated with the submissin f the executed System Impact Study Agreement shall be in accrdance with the requirements f Sectin 204.3A f the Tariff, which is als listed belw in Table Table 3-1-4: System Impact Study Depsit Prject size Required depsit Prtin t be held as nn-refundable >2MW and <20MW $10,000 10% <2 MW $5,000 10% Nte: See Table fr expected csts fr System Impact Studies fr small generatin. The Generatin Intercnnectin Facilities Study depsit amunt shall be in accrdance with the requirements f Sectin f the Tariff, which is als listed in Table Expedited and/r Cmbined Study Analysis Analysis cnducted during the Generatin Intercnnectin Feasibility and System Impact Studies will be expedited (t the degree pssible) fr new permanent Capacity Resurces f 20 MW r less, r permanent Energy Resurces f 20 MW r less, r increases f 20 MW r less 50

51 Sectin 3: Small Resurce Intercnnectin Prcess t existing resurces ver any cnsecutive 24 mnth perid (Tariff at Part VI, Sectin frmerly Sectin 36.12, in Part IV). Pwer flw analysis will be perfrmed based n a limited cntingency set t identify the impact f the resurce n the lcal system and any knwn vilatins in the area. Deliverability tests will nly be perfrmed fr small capacity resurces in areas where margins are knwn t be limited. Similarly, stability analysis will nly be perfrmed fr small resurces where existing stability margins are limited. Generatin Intercnnectin Facilities Studies fr small resurces can nly be expedited cnsistent with the scpe f the required transmissin facility additins and upgrades. A small generatr intercnnectin r upgrade may qualify fr the expedited study prcess if it meets the criteria described in Subpart G f the Tariff. Generally, if n lad flw r shrt circuit netwrk impacts are identified and there are n ther prjects in the vicinity f the small resurce additin, a Cmbined Feasibility and Impact Study (a/k/a a cmbined study) can be issued t the Intercnnectin Custmer. If a cmbined study reprt is being cnsidered, the custmer must prvide the fllwing within ten (10) business days f the Feasibility Study Scping Meeting: System Impact Study Data Depsit adjustment, if required (the greater f the Feasibility Study r Impact Study depsit) In rder t cnsider a prject fr a cmbined study, the Intercnnectin Custmer will need t select nly ne (1) Pint f Intercnnectin (POI). N secndary POI will be cnsidered fr a cmbined study. Analysis and design nrmally perfrmed within the cntext f Generatin Intercnnectin Feasibility, System Impact Studies will be perfrmed within ne study. Limited pwer flw analysis will be perfrmed t ensure that lcal cntingency criteria are nt vilated. Shrt circuit calculatins will be perfrmed t ensure that circuit breaker capabilities are nt exceeded. The Transmissin Owner, r cntractrs acting n their behalf, will evaluate the engineering details f the physical attachment f the resurce, as well as the relaying and metering assciated with the resurce t ensure a safe and reliable intercnnectin. All very small resurce intercnnectins require the executin f Intercnnectin Service Agreements. Permanent, small Capacity Resurces and Energy Resurces will execute the same frm f Intercnnectin Service Agreement as required fr larger resurces. A mdified frm f the Intercnnectin Service Agreement will be executed fr temprary Energy Resurces that reflect their intercnnectin status and their rights with respect t participatin in the PJM markets. Tariff sectin states that the tendered ISA (r WMPA) must be executed by the Intercnnectin Custmer within 60 days after receipt f the study reprt. PJM issues bth the study reprt and ISA r WMPA at the same time t give the Intercnnectin Custmer the 60 day perid t review bth the reprt and agreement(s). In the case f a cmbined study reprt (assuming n Facilities Study is required), PJM will need additinal time t create the required agreement(s) and get necessary legal review prir t issuing the reprt and agreement(s) t the custmer. Because f the additinal time fr legal reviews, the targeted due date fr the reprt and agreement t be delivered t the Intercnnectin Custmer will be three (3) mnths after the Tariff due date fr the Feasibility Study. 51

52 Sectin 3: Small Resurce Intercnnectin Prcess Exhibit 3: Cmbined Study Target Date 3.2 Specific Prvisins fr Resurces f 10 MW r Less Under certain circumstances, requests fr the intercnnectin f new resurces f 10 MW r less may be expedited thrugh the use f pre-certified generatin equipment and systems that meet IEEE Standard 1547 technical requirements. See Attachment E fr PJM Small Generatr (10 MW and Belw) Technical Requirements and Standards fr full details f the specific prvisins that apply t all new generatr intercnnectins with an aggregate size f 10 MW and belw at the Pint f Intercnnectin. 3.3 Specific Prvisins fr Resurces Greater than 10 MW up t 20 MW Requests fr the intercnnectin f new resurces greater than 10 MW up t 20 MW may als qualify fr certain Applicable Standards based n the cre IEEE Standard 1547 technical requirements. See Attachment E-1 fr PJM Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards fr full details f the specific prvisins that apply t all new generatr intercnnectins with an aggregate size f greater than 10 MW up t 20 MW at the Pint f Intercnnectin. 52

53 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements In this sectin yu will find the fllwing verviews f the requirements fr Intercnnectin Service Agreements and Intercnnectin Cnstructin Service Agreements: A descriptin f the Intercnnectin Service Agreement (see Intercnnectin Service Agreement ). A descriptin f the Intercnnectin Cnstructin Service Agreement (see Intercnnectin Cnstructin Service Agreement ). A descriptin f ther agreements (see Other Agreements ). 4.1 Intercnnectin Service Agreement After the Generatin r Transmissin Intercnnectin Facilities Study is cmpleted (r, if n Intercnnectin Facilities Study is required, upn cmpletin f the System Impact Study), the Transmissin Prvider ( PJM ) will furnish an Intercnnectin Service Agreement (in the frm included in Part VI, Attachment O t the Tariff) t be executed by the Develper and any affected Intercnnected Transmissin Owner(s). The Intercnnectin Service Agreement ( ISA ) defines the bligatin f the generatin r transmissin Develper regarding cst respnsibility fr any required system upgrades. The ISA als cnfers the rights assciated with the intercnnectin f a generatr as a capacity resurce and any peratinal restrictins r ther limitatins n which thse rights depend. Fr transmissin intercnnectin custmers, the ISA cnfers transmissin injectin and withdrawal rights (Merchant D.C. and/r Fully Cntrllable A.C. transmissin prjects) and applicable incremental delivery, available transfer capability revenue and auctin revenue rights. The ISA further identifies any changes in cnstructin respnsibility frm the Standard Optin fr Transmissin Owner Intercnnectin Facilities due t the Intercnnectin Custmer/Develper exercising the Negtiated Cntract Optin r Optin t Build. Upn issuance f the ISA, PJM team leadership fr the prject is transferred frm the study phase System Planning Senir Cnsultant t an Intercnnectin Crdinatin Senir Cnsultant fr the prject Intercnnectin and Cnstructin phases (see Attachment C fr PJM Generatin and Intercnnectin Planning Team Rle Clarity Diagram). Fr leadership cntinuity, the study phase team leader cntinues active participatin in the prject as a member f the Intercnnectin and Cnstructin team. Fr an Intercnnectin Request t maintain its assigned pririty, the Develper must respnd within 60 days f receiving the ISA. T prceed with the prject, the Develper must prvide PJM with a Letter f Credit r ther acceptable frm f security in the amunt equal t the estimated csts f new facilities r upgrades fr which the Develper is respnsible. The Develper must als respnd by: Executing and returning the Intercnnectin Service Agreement, r Requesting dispute reslutin, r Requesting, under certain circumstances, that the Intercnnectin Service Agreement be filed unexecuted. 53

54 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Further details regarding each f the three respnse actins may be fund in Part VI f the PJM Tariff, available frm FERC r n the PJM web site at Additinally, within the same 60-day perid, the Develper must demnstrate: Cmpletin f a fuel delivery agreement and water agreement, if necessary. Cntrl f any necessary rights-f-way fr fuel and water intercnnectins, if necessary. Acquisitin f any necessary lcal, cunty, and state site permits. A signed memrandum f understanding fr the acquisitin f majr equipment. PJM may als include ther reasnable milestne dates fr events such as permitting, regulatry certificatins, r third-party financial arrangements. Milestne dates may be extended by the PJM in the event f delays nt caused by the Intercnnectin Custmer, such as unfreseen regulatry r cnstructin delays. Additinally, PJM will again ensure that the Generatin and/r Transmissin Intercnnectin Custmer has access t the Applicable Technical Requirements and Standards f the Intercnnected Transmissin Owner(s) fr parallel peratin f generatrs with the Intercnnected Transmissin Owner(s) systems and ther matters generally included in gd utility practice. Technical requirements fr generatr and transmissin intercnnectins include but are nt limited t: Engineering design requirements and standards Intercnnectin prtectin requirements Generatr under-frequency trip settings t crdinate with autmatic under-frequency lad shedding schemes Vltage cntrl and reactive utput requirements (Tariff at Part VI, Sectin 4.7 in Att. O, App. 2 - frmerly Sectin 54.7, in Part IV) Data and cntrl requirements fr transmissin system peratin Equipment specificatins and suppliers Cnstructin requirements and standards Engineering, prcurement and cnstructin prcess requirements and standards Pursuant t sectin 1.2C f the Tariff, PJM makes dcuments cntaining Applicable Technical Requirements and Standards fr each Intercnnected Transmissin Owner available thrugh its internet site at PJM will file the Intercnnectin Service Agreement in cmpliance with applicable Cmmissin guidelines. If the Develper has requested dispute reslutin r unexecuted filing, cnstructin f facilities and upgrades shall be deferred until any disputes are reslved, unless therwise agreed by the Develper and the affected Intercnnected Transmissin Owner(s) Interim Intercnnectin Service Agreements Under certain circumstances, a Develper fr an Intercnnectin Service Agreement may wish t initiate prject cnstructin activities n an expedited basis prir t cmpletin f 54

55 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements the Generatin r Transmissin Intercnnectin Facilities Study. One example f such a circumstance is t request that rders be placed fr equipment r materials that have a lng lead time fr delivery. T initiate such an advance f cnstructin activities, the Develper may request executin f an Interim Intercnnectin Service Agreement (Tariff at Part VI, Attachment O-1) fr thse cnstructin activities being advanced. The Interim ISA wuld bind the Develper fr all csts incurred fr the cnstructin activities being advanced pursuant t the terms f the Tariff. While PJM agrees t prvide the Develper with the best estimate (determined in crdinatin with the affected Transmissin Owner(s) f the new facility csts and ther charges that may be incurred fr the wrk being advanced, such estimate shall nt be binding and the Develper must agree thrugh executin f the Interim ISA t cmpensate PJM and the affected Transmissin Owner(s) fr all csts incurred due t thse activities that were advanced Interim ISA vs. ISA with Interim Rights The Tariff, in sectin 211, allws fr prjects under study t advance rdering lng lead items and advance cnstructin by the Transmissin Owner. Advanced cnstructin fr New Facilities Tariff Attachment O-1, the Interim ISA, is available t accmplish advanced rdering f lng lead items. If advanced cnstructin is requested, Tariff Attachment O-1, the Interim ISA, must be used in cnjunctin with Tariff Attachment P, the Cnstructin Services Agreement. Interim ISAs d nt permit peratins t ccur as they d nt include prvisins and appendices required fr peratins. Advanced cnstructin fr generatrs with fully executed final agreements FERC requires nly ne final agreement can persist at any ne time. If advanced cnstructin r lng lead item rdering is required, a Tariff Attachment O, an ISA will be develped fr executin and will supersede the existing agreement in place fr that facility. The ISA will cllect necessary Security, identify the wrk r lng lead items t be purchased. If advanced cnstructin is required, Tariff Attachment P, a CSA will accmpany the ISA. See belw if advanced cnstructin and peratins are requested. Requesting peratins in advance f the study year As identified previusly, Interim ISAs d nt permit peratins. In rder t allw rights t be exercised in advance f the base case year, an ISA with interim rights is required. An ISA with interim rights allws a generatr t perate prir t the base case year(s), pending results f annually perfrmed interim deliverability studies. It is incumbent upn a Develper wishing t exercise rights in the PJM Market prir t their base case year t request interim studies thrugh their assigned PJM prject manager. Nte: Further infrmatin n all required studies and the Intercnnectin Service Agreement may be fund in Part VI, f the PJM Tariff (Tariff at Part VI, Sectin frmerly Subpart A at 36.8, in Part IV fr Generatin Intercnnectins, Tariff at Part VI, Sectin 212 frmerly Subpart B at 41.7 fr Transmissin Intercnnectins, Tariff at App. 2 f Att. O frmerly Subpart E fr Standard Terms and Cnditins and Attachment O fr the frm f Intercnnectin Service Agreement in Part VI frmerly Part IV) available in the library sectin f PJM s web site. 55

56 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Security Requirements In accrdance with Sectin f the Tariff, at the time the Intercnnectin Custmer executes the Intercnnectin Service Agreement (ISA), Interim ISA, Whlesale Market Participatin Agreement (WMPA), r Upgrade Cnstructin Service Agreement (UCSA), they must prvide Security (cash, letter f credit, r ther reasnable frm f Security) that names PJM as the beneficiary fr any wrk required and specified in the agreement t be perfrmed n behalf f the custmer r fr Netwrk Upgrades (wrk that may be relied n by ther New Service Custmers t be cmpleted) r fr cst allcatins twards Netwrk Upgrades. PJM requires Security t be held in rder t: Prtect Transmissin Owner(s) and ratepayers in the event the Intercnnectin Custmer fails t pay fr any cnstructin wrk perfrmed by the Transmissin Owner(s) and terminates their prject. The Security will allw the Transmissin Owner(s) t restre their system t a reliable state. Prtect ther New Service Custmers in the event the Intercnnectin Custmer terminates the prject after executing an ISA, Interim ISA, WMPA, r UCSA when anther New Service Custmer is relying n thse facilities. The Security wuld cver the cst f the Transmissin Owner(s) t cmplete the required Netwrk Upgrades that ther New Service Custmers need. The Security amunt is determined by PJM and is estimated t be the sum f the cst f: Required Nn-Direct Cnnectin Lcal Upgrades and Nn-Direct Cnnectin Netwrk Upgrades2 Any Netwrk Upgrades3 that Transmissin Owner(s) will be respnsible fr cnstructing that the custmer has cst allcatins twards Required Attachment Facilities, Direct Cnnectin Lcal Upgrades and Direct Cnnectin Netwrk Upgrades4 wrk that the Intercnnected Transmissin Owner expects t cmplete during the first three mnths f cnstructin wrk in earnest. Fr Nn-Direct Cnnectin Netwrk and Lcal Upgrades, as the cnstructin is cmpleted and paid, Security will be reduced apprpriately. If Security is paid in cash, an Intercnnectin Custmer can elect t allw Security t be wrked dwn during cnstructin, as lng as adequate Security remains after the payment. Fr Direct Cnnectin Netwrk and Lcal Upgrades and Attachment Facilities, Security is nt reduced until all wrk is cmpleted. Thus, if a prject is cmpleted, all Security will be returned t the Intercnnectin Custmer upn initial peratin. If an Intercnnectin Custmer fails t timely execute the Intercnnectin Service Agreement, meet the applicable Tariff milestnes identified in the ISA, r prvide the required Security, the Intercnnectin Request will be deemed terminated and withdrawn. Deferred Security: The Intercnnectin Custmer may request t defer prviding their Security fr up t 120 days after the Intercnnectin Custmer executes the Intercnnectin Service Agreement. Any Refer t Sectin 2.4 fr Netwrk Transmissin Upgrades Refer t Sectin 2.4 fr Netwrk Transmissin Upgrades Refer t Sectin 2.4 fr Netwrk Transmissin Upgrades 56

57 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Netwrk Upgrades that are being relied upn r culd be relied upn within the year by anther New Service Custmer that have a cmpleted System Impact Study are nt available fr this Deferred Security ptin. The Intercnnectin Custmer can request the Transmissin Owner t cmmence prcurement and / r engineering design f Transmissin Owner wrk during the deferred Security perid. The Intercnnectin Custmer must pay a depsit f $200,000 r 125% f the estimated csts that will be incurred during the 120 day perid, whichever is greater, t fund the cntinued design and prcurement activities fr the upgrades. $100,000 is nn-refundable. The Deferred Security depsit is separate and additinal t the Security required fr the ISA and cannt be used t ffset the requirement fr final Security. If there are any remaining nn-refundable depsit mnies, they will be returned t the Intercnnectin Custmer upn initial peratin. If the prject terminates befre initial peratin, the nn-refundable mney is frfeited Agreement Milestnes Prject specific milestnes are included in the agreement. The purpse f ISA milestnes is t ensure the Intercnnectin Custmer is perfrming their due diligence and making prgress with the installatin and cmpletin f their generatr facilities. PJM may add r remve milestnes t an ISA as required, but at a minimum new generatin prjects ISAs include the fllwing: Substantial Site wrk cmpleted Delivery f majr electrical equipment Cmmercial Operatin All milestnes cntain the phrase n r befre the milestne date. The n r befre allws a custmer t identify a mst likely schedule while accunting and allwing fr ptential schedule delays. If the milestne date in the ISA allws fr unfreseen delays and the prject actually is cmpleted n the aggressive timeline, then the n r befre agreement language allws fr them t cmmence peratins ahead f the milestne (this is a psitive utcme and accunts fr the greatest in-service prbability). Hwever, if PJM includes the mst aggressive schedule date as the milestne, then PJM must breach the custmer if they miss the milestne date (a very likely breach event since the left-mst arrw, based n the area under the bell curve is the least prbable and there is great ptential fr in-service t ccur later). Even the mst likely schedule date has a 50/50 chance as t whether PJM may have t breach the custmer fr missing a milestne date. 57

58 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Exhibit 4: Milestnes v. Cnstructin Prbability 4.2 Intercnnectin Cnstructin Service Agreement The cnstructin f any Intercnnectin Facilities required t intercnnect a generatr r transmissin prject with the PJM Transmissin Grid shall be perfrmed in accrdance with the Standard Terms and Cnditins as specified in an Intercnnectin Cnstructin Service Agreement t be executed amng the Develper fr Transmissin Service (Generatin r Transmissin Intercnnectin Custmer), PJM and the affected Intercnnected Transmissin Owner(s). The frm f an Intercnnectin Cnstructin Service Agreement may be fund in the PJM Tariff as Attachment P. 58

59 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements The party(ies) respnsible fr installing the Generatr and/r Transmissin Intercnnectin Facilities and/r Netwrk Upgrade Facilities shall use Reasnable Effrts t install thse facilities in accrdance with an agreed Schedule f Wrk. Nte: Further infrmatin n all terms and cnditins t be incrprated and made part f an Intercnnectin Cnstructin Service Agreement may be fund in Part VI, Att. P, App. 2 f the PJM Tariff (frmerly Subpart F fr Standard Cnstructin Terms and Cnditins and Attachment P fr the frm f an Intercnnectin Cnstructin Service Agreement in Part VI) available in the Library sectin f PJM s web site Optin t Build In the event that the Intercnnectin Custmer and the Intercnnected Transmissin Owner are unable t agree upn the terms f an Intercnnectin Cnstructin Service Agreement, r if mutually agreed by and between the Intercnnectin Custmer and the Intercnnected Transmissin Owner, the Intercnnectin Custmer shall have the right, but nt the bligatin ( Optin t Build ), t design and install all r any prtin f the Transmissin Owner Intercnnectin Facilities. T exercise this Optin t Build, the Intercnnectin Custmer must prvide PJM and the Intercnnected Transmissin Owner written ntice f its electin t exercise the ptin by n later than 37 days after the Intercnnectin Custmer s executin f the Intercnnectin Service Agreement. The Intercnnectin Custmer must request Optin t Build per the terms f the Intercnnectin Cnstructin Service Agreement. If exercising Optin t Build, the Intercnnectin Custmer must select cntractrs t perfrm such wrk frm the Transmissin Owner s List f Apprved Cntractrs. Each Transmissin Owner s List f Apprved Cntractrs is available n the PJM website. If a cntractr desired t be used by the Intercnnectin Custmer is nt n the List f Apprved Cntractrs, the custmer can request the Transmissin Owner evaluate the cntractr fr acceptability. The Intercnnectin Custmer is respnsible fr btaining all necessary permits, authrizatins, and land rights fr the cnstructin and installatin f the Transmissin Owner Intercnnectin Facilities that it is building. The Intercnnectin Transmissin Owner shall assist the Intercnnectin Custmer in acquiring such necessary permits, authrizatins, and land rights if requested by the Intercnnectin Custmer. If the Intercnnectin Custmer selects Optin t Build fr design, prcurement, cnstructin, and installatin f (a) any Transmissin Owner Intercnnectin facilities that are Lcal Upgrades r Netwrk Upgrades t existing transmissin system facilities r (b) Transmissin Owner Intercnnectin Facilities that are t be lcated n land r in right-f-way wned r cntrlled by the Intercnnected Transmissin Owner, the fllwing cnditins apply: All wrk must be perfrmed by cntractrs listed n the Intercnnected Transmissin Owner s List f Apprved Cntractrs. The Transmissin Owner must have full site cntrl f and reasnable access t its prperty at all times. The Transmissin Owner has the right t have representatives t supervise wrk dne n its prperty/facilities and stp r rder crrective measures t any wrk that reasnably culd be expected t have an adverse effect n reliability, safety, r security. 59

60 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements The Intercnnectin Custmer and its cntractrs must cmply with the Intercnnected Transmissin Owner s safety, security and wrk rules, and envirnmental guidelines applicable t the area f cnstructin activity. Upn cmpletin f the cnstructin and installatin f the Optin t Build facilities, and prir t energizatin, the Intercnnectin Custmer must have the cnstructed facilities inspected and tested by an authrized electric inspectin agency r qualified third party acceptable t the Intercnnected Transmissin Owner. The Intercnnected Transmissin Owner and PJM have the right t attend, bserve, and btain written results f such tests General Timeline If the Intercnnectin Custmer chses t exercise the Optin t Build, the Intercnnectin Parties must adhere t the fllwing timeline: The Intercnnectin Custmer must prvide PJM and the Intercnnected Transmissin Owner with written ntice f its electin t exercise the ptin by n later than 7 days after the date that is 30 days after the Intercnnectin Custmer s executin f the Intercnnectin Service Agreement. Within 10 days after ntifying PJM f its electin t exercise Optin t Build, Intercnnectin Custmer shall slicit bids frm ne r mre Apprved Cntractrs. Prir t cmmencing cnstructin, the Intercnnectin Custmer shall submit t the Intercnnected Transmissin Owner and PJM initial drawings, certified by a registered prfessinal engineer, f the Transmissin Owner Intercnnectin Facilities that the Intercnnectin Custmer arranges t build under the Optin t Build. After cnsulting with the Intercnnected Transmissin Owner, PJM shall prvide cmments n such drawings t the Intercnnectin Custmer within 60 days after its receipt theref, after which time any drawings nt subject t cmment shall be deemed t be apprved. Each Cnstructing Entity shall issue reprts t each ther Cnstructin Party n a mnthly basis regarding the status f the cnstructin and installatin f the Intercnnectin Facilities. Each Cnstructin Party shall prmptly identify, and shall ntify each ther Cnstructin Party f, any event that may delay cmpletin r may significantly increase the cst f the Intercnnectin Facilities. Within 15 days f such ntificatin, PJM shall cnvene a technical meeting f the Cnstructin Parties t evaluate schedule alternatives. Intercnnectin Custmer and the Intercnnected Transmissin Owner shall crdinate the timing and schedule f all inspectin and testing f the Intercnnectin Facilities. If inspectin r testing identifies any defects r failures t cmply with Applicable Standards f (i) Intercnnectin Facilities cnstructed by the Intercnnectin Custmer, Intercnnected Transmissin Owner shall ntify the Intercnnectin Custmer and PJM f such defects r failures within 20 days after receipt f the results f such inspectin r testing, r (ii) Intercnnectin Facilities cnstructed by the Intercnnected Transmissin Owner, Intercnnected Transmissin Owner shall take apprpriate actin t crrect any such defects r failures within 20 days after it learns theref. Within 10 days after satisfactry inspectin and/r testing f Intercnnectin Facilities built by the Intercnnectin Custmer/Develper, the Intercnnected Transmissin Owner shall cnfirm in writing t the Intercnnectin Custmer and PJM that the successfully inspected and tested facilities are acceptable fr energizatin. 60

61 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Within 5 days after determining that Intercnnectin Facilities have been successfully energized, the Intercnnected Transmissin Owner shall issue a written ntice t the Intercnnectin Custmer accepting the Intercnnectin Facilities built by the Intercnnectin Custmer that were successfully energized. Within 30 days after the Intercnnectin Custmer s receipt f ntice f acceptance f the Intercnnectin Facilities, the Intercnnectin Custmer shall deliver t the Intercnnected Transmissin Owner, fr the Intercnnected Transmissin Owner s review and apprval, all f the dcuments and filings necessary t transfer t the Intercnnected Transmissin Owner title t any Transmissin Owner Intercnnectin Facilities cnstructed by the Intercnnectin Custmer, and t cnvey t the Intercnnected Transmissin Owner any easements and ther land rights t be granted by the Intercnnected Custmer that have nt by then already been cnveyed. The Intercnnected Transmissin Owner shall review and apprve such dcumentatin, such apprval nt t be unreasnably withheld, delayed r cnditined. Within 30 days after its receipt f the Intercnnected Transmissin Owner s written ntice f apprval f the dcumentatin, the Intercnnectin Custmer, in crdinatin and cnsultatin with the Intercnnected Transmissin Owner, shall make any necessary filings at the FERC r ther gvernmental agencies fr regulatry apprval f the transfer f title. Within 20 days after the issuance f the last rder granting a necessary regulatry apprval becmes final, the Intercnnectin Custmer shall execute all necessary dcumentatin and shall make all necessary filings t recrd and perfect the Intercnnected Transmissin Owner s title in such facilities and in the easements and ther land rights t be cnveyed t the Intercnnected Transmissin Owner Summary f General Cnditins In additin t the ther terms and cnditins applicable t the cnstructin f facilities under the Optin t Build, the Generatin and/r Transmissin Intercnnectin Custmer must als: Obtain all necessary permits and authrizatins Obtain all necessary land rights Accept the exclusive right and bligatin f the Intercnnected Transmissin Owner t perfrm line tie-in wrk and t calibrate remte terminal units and relay settings Fllw accepted prcedures t have thse facilities that it builds successfully inspected, tested and energized Arrange fr all wrk t be perfrmed by cntractrs, and using equipment manufacturers r vendrs that are listed n the Intercnnected Transmissin Owner s List f Apprved Cntractrs Allw the Intercnnected Transmissin Owner full site cntrl and reasnable access t its prperty at all times Allw the Intercnnected Transmissin Owner t have a reasnable number f apprpriate representatives present fr all wrk dne n its prperty/facilities and the right t stp wrk r rder crrective measures fr any wrk with an adverse effect n reliability, safety r security f persns r f prperty 61

62 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Cmply with the Intercnnected Transmissin Owner s safety, security and wrk rules, envirnmental guidelines and training requirements applicable t the area(s) where cnstructin activity is ccurring, and Submit t the Intercnnected Transmissin Owner and PJM initial drawings, certified by a registered prfessinal engineer, f the Transmissin Owner Intercnnectin Facilities that the Intercnnectin Custmer/Develper arranges t build under the Optin t Build. Nte: Further infrmatin n all terms and cnditins t be incrprated under the Optin t Build may be fund in Part VI, Sectin in App. P, App. 2 frmerly Part IV, Subpart F at f the PJM Tariff, available in the library sectin f PJM s web site Specific Prcess Flw and Timeline (See Timeline in Attachment A) Activity Activity Duratin Cumulative Duratin Generatin and/r Transmissin Intercnnectin Custmer (IC) submits an initial Intercnnectin Request in the frm f an executed Generatin and/r Transmissin Intercnnectin Feasibility Study Agreement t PJM with all required infrmatin including evidence f wnership interest and a depsit t be used fr the Intercnnectin Studies. PJM infrms the affected Intercnnected Transmissin Owner(s) (ITOs) upn receipt f each Generatin and/r Transmissin Intercnnectin Request. Requests received in 2 cycles per year ending n March 31 and September 30. Up t 182 days (may be accelerated fr small resurce prjects f 20 MW r less) PJM cnducts Generatin and/r Transmissin Intercnnectin Feasibility Study in crdinatin with each affected ITO. Up t 92 day windw, Up t 304 after 30 day mdeling days perid st Cmplete studies in 2 cycles per year (cmplete by March 31 th and September 30 ) PJM respnds t the IC with the Generatin and/r Transmissin Intercnnectin Feasibility Study Agreement results, tenders a System Impact Study Agreement t the IC, prvides ntificatin t the affected ITOs and psts the results f the Generatin and/ r Transmissin Intercnnectin Feasibility Study n the PJM web site. IC determines respnse t the Generatin and/r Transmissin Intercnnectin Feasibility Study results. Up t 30 days Up t 334 days IC submits an executed System Impact Study Agreement (with prf f applicatin fr an air permit if required fr a generatr installatin) and depsit. 62

63 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Activity PJM cnducts the System Impact Study, in crdinatin with any affected ITOs, during the next designated cycle and cmpletes the Study within 120 days f cmmencement. Activity Duratin Cumulative Duratin Up t 120 days fr study, after 60 day mdeling perid Up t 514 days Up t 30 days Up t 544 days Cmmence studies in 2 cycles per year (cmmence by June 1 and December 1) PJM advises the IC f the System Impact Study Agreement results, tenders a Facilities Study Agreement t the IC/D, prvides ntificatin t the affected ITOs and psts the results f the System Impact Study n the PJM web site. IC determines respnse t the System Impact Study results. IC submits an executed Generatin and/r Transmissin Intercnnectin Facility Study Agreement with a depsit f $100,000 r the estimated cst f its prject respnsibility, whichever is higher (small resurces f 20 MW r less pay a depsit in the amunt f the estimated cst f the study). If ne is required, PJM cnducts the Generatin and/r Based n estimate f Transmissin Intercnnectin Facilities Studies, prviding gd the time needed faith estimates f the cst t be charged t each affected IC fr the Attachment Facilities, Lcal Upgrades and Netwrk Upgrades and a SCHEDULE OF WORK t cmplete cnstructin f the facilities and upgrades. Up t 544 days + time fr Facilities Studies PJM prvides the Generatin and/r Transmissin Intercnnectin Facilities Studies results t the IC and tenders an Intercnnectin Service Agreement t each Generatin and/r Transmissin Intercnnectin Custmer. PJM psts the results f the Generatin and/r Transmissin Intercnnectin Facilities Study n the PJM web site. (If the Transmissin Intercnnectin Facilities Study nly identifies the need t upgrade existing netwrk facilities, then PJM shall tender an Upgrade Cnstructin Service Agreement t the Transmissin Intercnnectin Custmer fr executin) IC determines respnse t the Generatin and/r Transmissin Intercnnectin Facilities Studies results and the SCHEDULE OF WORK. IC executes and returns tendered Intercnnectin Service Agreement r Upgrade Cnstructin Service Agreement Within 60 days Up t 604 days + F.S. IC elects Optin t Build Within 37 days fllwing IC Up t 641 days + F.S. 63

64 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Activity Activity Duratin Cumulative Duratin executin f the Intercnnectin Service Agreement PJM tenders and IC executes and returns Intercnnectin Cnstructin Service Agreement Within days Up t 739 days + F.S. IC slicits bids frm Apprved Cntractrs within 10 days after electing the Optin t Build Within 10 days Up t 651 days + F.S. IC submits initial drawings t the Intercnnectin Transmissin Owner (ITO) and PJM - PJM respnds within 60 days Within 60 days Cnstructing entity submits mnthly reprts Mnthly Cnstructing entity ntifies f delays r cst increases PJM cnvenes a technical meeting within 15 days Within 15 days Inspectin r testing identifies defects Crrective actin is required within 20 days Within 20 days Written ntificatin by ITO is t be prvided within 10 days f satisfactry inspectin and/r testing and acceptance fr energizatin Within 10 days After successful energizatin, ITO prvides written ntice accepting the Intercnnectin Facilities built by the IC within 5 days Within 5 days IC delivers all dcuments and filings t the ITO within 30 days f receipt f ntice f acceptance Within 30 days After written ntice f apprval by ITO, the IC makes filings t FERC r ther gvernmental agencies within 30 days Within 30 days After receipt f all regulatry apprvals, the IC makes filings t recrd easements and land rights t be cnveyed t the ITO within 20 days Within 20 days If the Generatin and/r Transmissin Intercnnectin Custmer (IC) selects the Optin t Build, the fllwing timeline fr varius independent activities must be adhered t: Other Timeline requirements: Security fr Payment - IC shall prvide PJM with Security in the amunt that is equal t the estimated cst f the ITO Intercnnectin Facilities that the ITO is respnsible fr cnstructing Within 60 days after the date f IC s receipt f Facilities Study 64

65 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements Activity Activity Duratin Cumulative Duratin Submit Invices ITO t PJM Mnthly PJM t IC Mnthly IC payment t PJM Within 15 days Submit Final Invice ITO t PJM Within 120 days f prject cmpletin Crss-References t Other Supprting PJM Dcuments PJM Manuals PJM Manual fr Cntrl Center Requirements (M-1) PJM Manual fr Transmissin Service Request (M-2) PJM Manual fr Transmissin Operatins (M-3) PJM Manual fr Rules and Prcedures fr Determinatin f Generating Capability (M-21) PJM Tariff Part VI (Intercnnectins with the Transmissin System) Subpart A Generatin Intercnnectin Prcedures Subpart B Transmissin Intercnnectin Prcedures (Cnslidated with Subpart A) Subpart C (Reserved) Subpart D Intercnnectin Rights (Mved t Subpart C in Part VI) Subpart E Standard Terms and Cnditins fr Intercnnectin (Tariff at Part VI, title mved t App. 2 f Att. O. Subpart E deleted.) Subpart F Standard Cnstructin Terms and Cnditins (Tariff at Part VI, title mved t Att. P, App. 2. Subpart F deleted.) Subpart G Small Generatin Intercnnectin Prcedure Attachment N-3 Frm f Optinal Intercnnectin Study Agreement Attachment O Frm f Intercnnectin Service Agreement Attachment O-1 Frm f Interim Intercnnectin Service Agreement Attachment P Frm f Cnstructin Service Agreement Attachment S Frm f Transmissin Intercnnectin Feasibility Study Agreement 65

66 Sectin 4: Intercnnectin Service Agreement and Cnstructin Service Agreement Executin and Other Agreements PJM Operating Agreement Schedule 6 Reginal Transmissin Expansin Planning Prtcl 4.3 Whlesale Market Participant Agreement (WMPA) Develpers intercnnecting t nn-ferc jurisdictinal facilities wh intend n participating in the PJM whlesale market will receive a three party agreement knwn as a WMPA. The WMPA is a nn-tariff agreement which must be filed with the FERC. The WMPA is essentially an ISA withut intercnnectin prvisins. 4.4 Other Agreements Statin Pwer All electric generatin facilities cnsume sme electric energy, generally referred t as statin pwer in their peratins. Statin pwer requirements can include, fr example, energy used fr re-starting generatrs after they have been shut dwn fr maintenance r ther reasns; fr emissins cntrl and related mnitring equipment; fr pumping and treating cling water; fr fuel handling equipment; and fr lighting, heating and air cnditining f plant cntrl rms and ffices. Statin pwer is defined as energy cnsumed in the PJM cntrl area by a generating facility r by equipment r facilities lcated at the site f a generatin facility and used in the peratin, maintenance, r repair f the generatin facility, regardless f whether the facility is perating when the energy is cnsumed. Generatrs may btain statin service frm a lcal utility under retail tariffs r service agreements. Every generatr in PJM s cntrl area remains free (cnsistent with FERC plicy) t purchase any r all f its statin pwer frm any seller cnnected t the grid. Make certain yur cntracts r business arrangements fr btaining Statin Pwer are in place befre beginning generatr peratins. 66

67 Sectin 5: Additinal Generatr Requirements Sectin 5: Additinal Generatr Requirements In this sectin yu will find: The definitin f Behind the Meter Generatin and requirements related t such prjects, Generatr pwer factr requirements, and Wind r Nn-Synchrnus generatr requirements. 5.1 Behind the Meter Generatin Behind the Meter Generatin (BtMG) is the utput frm generatin that ffsets lad and des nt and cannt participate in the whlesale market. Thus, in rder t be cnsidered BtMG, pwer claimed as BtMG must deliver energy t lad withut using the Transmissin System r any distributin facilities (unless the entity that wns r leases the distributin facilities has cnsented t such use f the distributin facilities and such cnsent has been demnstrated t the satisfactin f PJM). Generatin claimed as BtMG cannt participate in the PJM Capacity r energy market. Even if partial BtMG is prpsed, the prtin claimed as BtMG must always stay behind the meter unless and until the generatr takes the steps required t have the generatin participate in the whlesale markets. Behind the Meter Generatin cannt include (i) at any time, any prtin f such generating unit(s) capacity that is designated as a Capacity Resurce; r (ii) in any hur, any prtin f the utput f the generating unit(s) that is sld t anther entity fr cnsumptin at anther electrical lcatin r int the PJM Interchange Energy Market. Behind the Meter Generatin rules permit lad serving entities in PJM t net perating Behind the Meter Generatin against lad in the calculatin f charges fr energy, capacity, transmissin service, ancillary services and PJM administrative fees. This ttal netting apprach is intended t encurage the use f Behind the Meter Generatin during times f scarcity and high prices, thus increasing the pprtunity fr lad t cmpete in PJM markets. A prfessinal engineer stamped ne-line cnfiguratin must be prvided t shw the relatinship between equipment that prevents behind the meter pwer flw t the system, past the Pint f Intercnnectin meter (in the case f Nn-Retail BtMG, equipment must prevent BTMG pwer flw nt the Transmissin System). Additinally, the affected entity must be aware and have perfrmed the necessary studies t assure adequate system capabilities and prtectins are in place fr the receipt f the pwer BtMG Intercnnectin Requests Any Behind the Meter Generatin that desires t be designated, in whle r in part, as a Capacity Resurce r Energy Resurce must submit a Generatin Intercnnectin Request. (Tariff at Part VI, in Sectin frmerly Subpart A at 36.1A, in Part IV) BtMG Metering Behind the meter generatin cnsisting f ne r mre generating units individually rated at ten megawatts r greater r that therwise have been identified by PJM as requiring metering fr peratinal security reasns must have bth revenue quality metering and telemetry equipment 67

68 Sectin 5: Additinal Generatr Requirements fr peratinal security purpses. Behind the meter generatin cnsisting f multiple generating units that are individually rated less than ten megawatts but tgether ttal mre than ten megawatts at a single site and are identified by PJM as requiring revenue quality metering and telemetry equipment may meet these metering requirements by being metered as a single unit. (Operating Agreement, Sectin 14.5) BtMG Effects n Market Operatins Market Buyers shall be charged fr all lad and assciated ancillary services based n the Market Buyer s ttal lad (net f perating Behind the Meter Generatin, but nt t be less than zer.) (Operating Agreement, Schedule 1) Nn-Retail BtMG Nn-Retail BtMG refers t state intercnnected generatrs that reduce the lad f an electric distributin cmpany, electric c-perative r municipality utility. The Generatin Owner in this case des nt request this status. The request fr Nn-Retail BTMG status must cme fr the affected electric distributin utility, electric cperative r municipal utility, whse transmissin served lad requirements are being impacted. Nn-Retail BtMG rules permit lad serving entities in PJM t net perating BtMG against lad in the calculatin f charges fr energy, capacity, transmissin service, ancillary services and PJM administrative fees. This ttal netting apprach is intended t encurage the use f BtMG during times f scarcity and high prices, thus increasing the pprtunity fr lad t cmpete in PJM markets. 5.2 Generatr Pwer Factr Requirements Except as PJM may determine therwise fr small generatin resurces f 20 MW r less, all generatrs intercnnected with the PJM System shall be designed t maintain a cmpsite pwer delivery at cntinuus rated pwer utput and reactive capability, at the generatr terminal, crrespnding t the pwer factr requirements stated in the Tariff. (Tariff at Part VI, Att. O, App. 2, Sectin frmerly in Part IV) Applicatin f Pwer Factr Requirements t Increases f Existing Generatin Tariff prvisins require existing generatrs t be designed t perate at a specified leading and lagging pwer factr as measured at the generatr terminals. Pwer Factr requirements als apply t capacity r energy increases t existing generatin. (Tariff at Part VI, Att. O, App. 2, Sectin ) Increases t existing generatrs must be designed t maintain the grandfathered Mvar capability fr the existing and pre-upgraded grss generatr utput capability and the Sectin pwer factr requirement fr all incremental MW increases. Grandfathered Mvar capability will be determined using the fllwing methdlgy and cnsideratins. If an agreement exists and cntains a reference t required Mvar capability, the methdlgy in the agreement will determine the grandfathered Mvar capability. 68

69 Sectin 5: Additinal Generatr Requirements Cnsideratin will be given t the ptential interpretatins f the language in the agreement. Nn-standard r vague terms and cnditins will be discussed by PJM and the parties named in the agreement. If n agreement exists r there is n reference t required Mvar capability in an existing agreement, PJM will use alternate methds t determine the grandfathered Mvar capability f the machine. Examples f ptential alternate methds that may be used at PJM s discretin. Use f the D-Curve prvided by the manufacturer and is n file with PJM. Review f the data with the GO and prvide an pprtunity fr the GO prvide additinal analytical evidence as t the actual Mvar capability, if different frm the manufacturer design data. Cnsideratin f available test data with acknwledgement that tests are nt always perfrmed under ideal cnditins and the system may limit the capability during testing. Input frm the GO will als be cnsidered as part f the evaluatin by PJM. Cnsideratin f histrical peratinal data. Attachment H t this Manual 14A details a prcess, adhering t the requirements f the PJM Tariff, t mitigate the reactive deficiency arising when an increase f capacity r energy t an existing generatr results in the generatr nt being able t meet the PJM pwer factr requirements fr the existing and/r incremental capacity r energy. 5.3 Wind r Nn-Synchrnus Generatin Prjects Because f the intermittent nature f wind-pwer and ther nn-synchrnus generatin, a specific prcedure is required t determine an apprpriate capacity value fr these facilities Wind r Nn-Synchrnus Generatin Capacity Credit Rules PJM business rules allw fr wind r nn-synchrnus generatin prjects t qualify fr Capacity Resurce status. Refer t PJM Manual 21 Rules and Prcedures fr Determinatin f Generating Capability fr details f PJM prcedures fr calculating Capacity Credits fr these facilities Wind r Nn-Synchrnus Generatin Specific Technical Requirements Withut exceptin, all Custmer Facilities will be subject t the prvisins f the PJM Tariff at Part VI, in Sectin and Sectin in Att. O, App. 2 frmerly and in Part IV, which describes real-time bligatins t supply reactive pwer and the cnsequences f deviatins frm vltage schedules and/r reactive pwer schedules. 69

70 Attachment A: PJM Generatin and Transmissin Intercnnectin Planning Prcess Flw Diagram Attachment A: PJM Generatin and Transmissin Intercnnectin Planning Prcess Flw Diagram Valid thrugh Octber 31,

71 Attachment A-1: PJM Generatin and Transmissin Intercnnectin Planning Prcess Flw Diagram Attachment A-1: PJM Generatin and Transmissin Intercnnectin Planning Prcess Flw Diagram Transitinal Perid: Nvember 1, 2016 thrugh March 31,

72 Attachment A-2: PJM Generatin and Transmissin Intercnnectin Planning Prcess Flw Diagram Attachment A-2: PJM Generatin and Transmissin Intercnnectin Planning Prcess Flw Diagram Valid: April 1, 2017 frward 72

73 Attachment B: PJM Request Cst Allcatin Prcedures Attachment B: PJM Request Cst Allcatin Prcedures B.1 Purpse One f the respnsibilities f PJM as an RTO is t allcate the cst respnsibility fr all system reinfrcement prjects including prjects required fr Custmer New Service Requests, baseline transmissin reliability upgrades and market efficiency upgrades. The cst allcatin prcedures used by PJM t allcate csts due t requests are described belw. Manual 14B addresses baseline-driven upgrade cst allcatin prcedures. B.2 Scpe The RTEP encmpasses tw types f enhancements: Netwrk Upgrades and Direct Cnnectin Attachment Facilities. Netwrk Upgrades can be required in rder t accmmdate the intercnnectin f a merchant prject (generatin r transmissin) r t eliminate a Baseline prblem as a result f system changes such as lad grwth, knwn transmissin wner facility additins, etc. The PJM Cst Allcatin Prcedures are presented in tw parts: PJM Generatin and Transmissin Intercnnectin Cst Allcatin Methdlgies discusses the cst allcatin methdlgy fr prjects required fr generatr and transmissin intercnnectins, belw and: Schedule 12 Cst Allcatin Prcess fr Baseline Transmissin Reliability and Market Efficiency Upgrades discusses the cst allcatin prcess fr baseline transmissin reliability and market efficiency upgrade prject requirements in Manual 14B. New Service Custmers, ther than thse prpsing Merchant Netwrk Upgrades, may participate in Multi-Driver Apprach prjects identified by PJM. Further infrmatin is prvided in Manual 14B. The results f the System Impact Studies reveal Direct Cnnectin Attachment Facilities required fr new generatin t get t the bus, Lcal and Netwrk Upgrades t mitigate any netwrk impact effects which the additin f such new generatin r new transmissin facilities may have n the pwer system itself. Each respective generatr r transmissin prject bears the cst respnsibility fr Direct Cnnectin Attachment facilities required fr intercnnectin. The cst respnsibility fr Lcal and Netwrk Upgrades identified thrugh System Impact Study analysis is allcated amng parties accrding t the fllwing: Fr Lcal and Netwrk Upgrades which are required due t the verlads assciated with the System Impact Studies f an individual New Services Queue, the cst f the Lcal and Netwrk Upgrades will be allcated accrding t the rder f the New Service Requests in the New Services Queue and the MW cntributin f each individual New Service Request fr thse prjects which cause r cntribute t the need fr the Lcal r Netwrk Upgrades. The Lad Flw Cst Allcatin methds discussed in this manual, including cutffs, still apply t the individual prjects. B.2.1 Definitins New Service Queue Clse Date The date n which a New Service Queue ends. st Currently, in the PJM Tariff, the New Service Queue Clse Dates are March 31 and th September

74 Attachment B: PJM Request Cst Allcatin Prcedures New Service Custmer The respnsible party fr a generatr, merchant transmissin, r ther transmissin upgrade prject that is in the PJM New Service Queue. Queue Date The date n which PJM receives a valid New Service Request frm a New Service Custmer. B.3 PJM Generatin and Transmissin Intercnnectin Cst Allcatin Methdlgies The cst allcatin prcedure will cntinue t be evaluated and mdified, if required, as the intercnnectin prcess prceeds. B.3.1 Lad Flw Cst Allcatin Methd New Service Custmer requests are studied as a single study fr all active prjects in an individual New Services Queue. Netwrk Upgrades are identified t maintain system reliability. Individual Lcal & Netwrk Upgrades which cst less than $5,000,000 All New Service Custmers with active New Service Requests in an individual New Services Queue will be allcated a cst fr these Netwrk Upgrades based upn the fllwing criteria: The first New Service Custmer t cause the facility identified in the study which exceeds 100% lading f the applicable rating and develps the need fr the Netwrk Upgrade will in all cases have sme cst allcatin. Cntingent t the individual New Service Request cntributing MW impact being greater than 5 MW AND greater than 1% f the applicable line rating OR (if its Distributin Factr (DFAX) n the facility is greater than 5% AND its MW impact n the facility s rating is greater than 3%), the cntributin f a New Service Custmer is determined by the vltage level f the facility that it impacts: Fr a transmissin facility whse rated vltage level is belw 500 kv, a New Service Custmer will have sme cst allcatin if its Distributin Factr (DFAX) n the facility is greater than 5% OR if its MW impact n the facility s rating is greater than 5%. Fr a transmissin facility whse rated vltage level is 500 kv r abve, a New Service Custmer will have sme cst allcatin if its DFAX n the facility is greater than 10% OR if its MW impact n the facility s rating is greater than 5%. Fr New Service Requests invlving studies fr Lng Term Firm Transmissin Service seeking t imprt pwer t PJM, r which therwise have their surce f pwer utside PJM, the New Service Custmer will have sme cst allcatin twards upgrades assciated with all PJM facilities, if its Distributin Factr (DFAX) n the facility is greater than 3% OR if its MW impact n the facility s rating is greater than 3%. Allcatin f csts t New Service Custmers fr a Netwrk Upgrade which has a cst f less than $5,000,000 will nt ccur utside f the New Services Queue in which the need fr the Netwrk Upgrade was identified Allcatin f csts t New Service Custmers fr a Netwrk Upgrade which has a cst f less than $5,000,000 will be based n the ttal MW impact n the facility requiring a Netwrk Upgrade as determined in the System Impact Study Individual Lcal & Netwrk Upgrades which cst $5,000,000 r greater 74

75 Attachment B: PJM Request Cst Allcatin Prcedures All New Service Custmers after and including the New Service Custmer under study, that cntribute t the need fr the Netwrk Upgrade are identified and their MW impact n the need fr the Netwrk Upgrade is determined. The MW impact will be based n the cnditin that causes the need fr a Netwrk Upgrade. The first New Service Custmer t cause the need fr the Netwrk Upgrade will in all cases have sme cst allcatin. The cst allcatin fr this New Service Custmer will nly cnsider the lading abve the facility s capability. Cntingent t the cntributing MW impact being greater than 5 MW AND greater than 1% f the applicable line rating, the cntributin f an New Service Custmer fllwing the first New Service Custmer t cause the need fr the Netwrk Upgrade is determined by the vltage level f the facility that it impacts: Fr a transmissin facility whse rated vltage level is belw 500 kv, a New Service Custmer will have sme cst allcatin if its Distributin Factr (DFAX) n the facility is greater than 5% OR if its MW impact n the facility s rating is greater than 5%. Fr a transmissin facility whse rated vltage level is 500 kv r abve, a New Service Custmer will have sme cst allcatin if its DFAX n the facility is greater than 10% OR if its MW impact n the facility s rating is greater than 5%. Fr New Service Requests invlving studies fr Lng Term Firm Transmissin Service seeking t imprt pwer t PJM, r which therwise have their surce f pwer utside PJM, the New Service Custmer will have sme cst allcatin twards upgrades assciated with all PJM facilities, if its Distributin Factr (DFAX) n the facility is greater than 3% OR if its MW impact n the facility s rating is greater than 3%. New Service Custmers will be assigned csts in prprtin t their cntributing MW impacts. Fr purpses f allcatin f Netwrk Upgrade csts t future Queue, a New Service Custmer will be respnsible fr allcated csts, within previusly stated cst allcatin guidelines, if their New Service Queue Clse Date ccurs less than 5 years fllwing the executin f the first Intercnnectin Service Agreement r Upgrade Cnstructin Service Agreement which identifies the need fr this Netwrk Upgrade. N depreciatin f the as-built Netwrk Upgrade cst will be used when allcating csts between New Service Custmers. Cst allcatin fr the engineering design f Netwrk Upgrades will terminate based n the cmpletin f the applicable Facilities Study. A cmplete list f Distributin Factrs fr all PJM mdeled substatins will be develped during System Impact Studies fr each identified Netwrk Upgrade. This Distributin Factr list will be used fr all cst allcatin pertaining t the identified Netwrk Upgrade. B.3.2 Shrt Circuit Cst Allcatin Methd All New Service Custmer prjects are studied in queue rder. A New Service Custmer will have sme cst allcatin if the custmer s cntributing fault current impact n the circuit breaker s applicable interrupting rating is greater than 3% r 75

76 Attachment B: PJM Request Cst Allcatin Prcedures if it results in a greater than 3% increase in fault current at the substatin. The firstnew Service Custmer t cause the need fr the Netwrk Upgrade will in all cases have sme cst allcatin. A New Service Custmer will be assigned csts in prprtin t its fault level cntributin r the fault level increase as a result f the inclusin f a new Netwrk Upgrade required by that New Service Custmer. Fr Queue D and thereafter, the first New Service Custmer t cause the need fr a Netwrk Upgrade due t increased fault current will in all cases have sme cst allcatin. The cst allcatin fr this New Service Custmer will nly cnsider the lading abve the equipment s capability. Fr purpses f allcatin f Netwrk Upgrade csts t future Queue, a New Service Custmer will be respnsible fr allcated csts, within previusly stated cst allcatin guidelines, if their New Service Queue Clse Date ccurs less than 5 years fllwing the executin f the first Intercnnectin Service Agreement, r Upgrade Cnstructin Service Agreement which identifies the need fr this Netwrk Upgrade. If during the curse f a shrt circuit study it is determined that a lad flw (r stability) reinfrcement subsequently causes breaker(s) t exceed their applicable rating, the cst f breakers identified in this case will be allcated based n the lad flw (r stability) cst allcatin rules assciated with the lad flw (r stability) reinfrcement as these breaker(s) are cnsidered a part f the lad flw (r stability) reinfrcement. The cntributing fault current frm the mdeling f the reinfrcement is recrded in the event that anther queue request des nt require the lad flw reinfrcement, but instead, adds fault current in excess f the nrmal shrt circuit threshld f 3% t a breaker. See belw fr an example f cst allcatin fr lad flw (r stability) driven circuit breaker replacements. Example f cst allcatin fr circuit breaker replacement with thermal (r stability) upgrade driver (r cntributr) t the fault current: Queue Psitin MW Cntributin Thermal upgrade cst allcatin XX % XX % XX % Mdeling f the Thermal upgrade in the shrt circuit study case results in the cntributin f 10kA t a breaker and causes the breaker t be verstressed. Driver Fault cntributin (ka) Shrt Circuit + Thermal Cst Allcatin impacts (ka) Ttal Cst allcatin fr Shrt Circuit cntributin (ka) Thermal upgrade 10 N/A N/A XX *0.5 (2 is fault 2+5=7 cntributin frm prject generatr(s), 10 is 76

77 Attachment B: PJM Request Cst Allcatin Prcedures fault cntributin frm reinfrcement, 0.5 = 50% cst allcatin per thermal analysis) XX *0.3 (4 is fault 4+3=7 cntributin frm prject generatr(s), 10 is fault cntributin frm reinfrcement, 0.3 = 30% cst allcatin per thermal analysis) XX *0.2(1 is fault 1+2=3 cntributin frm prject generatr(s), 10 is fault cntributin frm reinfrcement, 0.2 = 20% cst allcatin per thermal analysis) XX (des nt require thermal upgrade) The ttal cst allcatin fr shrt circuit cntributin is the basis fr the determinatin f the cst allcatin twards the breaker upgrade csts. If a breaker replacement cst $1M, and based n the cntributins listed abve, the cst allcatin fr the breaker upgrade is belw. Driver Ttal Cst Allcatin fr Shrt Circuit cntributin (ka) Cst Allcatin XX =7 (7/( ))*$1M=$350K XX =7 (7/( ))*$1M=$350K XX =3 (3/( ))*$1M=$150K XX-004 (des nt require thermal upgrade) 3 (3/( ))*$1M=$150K N depreciatin f the as-built Netwrk Upgrade cst will be used when allcating csts between New Service Custmers. Cst allcatin fr the engineering design f Netwrk Upgrades will terminate based n the cmpletin f the applicable Facilities Study. PJM will cnsider applicatin f an individual cmpnent cst vs. an aggregate cst when determining the cst allcatin windw. 77

78 Attachment B: PJM Request Cst Allcatin Prcedures B.3.3 Cst Allcatin Methd fr Generatr and/r Generatr Step Up (GSU) Changes The generatr and generatr step up transfrmer (GSU) characteristics prvided by the Develper prir t the initiatin f the System Impact Studies fr a given queue will be used fr all cst allcatin during the System Impact Study phase. If a Develper changes the generatr r GSU characteristics after initiatin f the System Impact Studies, any additinal system prblems and any resulting reinfrcements will be assigned cmpletely t the Generatin Intercnnectin prject that made the changes. Future queued generatin may share sme cst allcatin based n when the generatr r GSU changes were prvided t PJM. Example 1: Impact studies fr Queue Z started n May 10, Five 230 kv breakers at substatin Alpha were required t be replaced due t several prjects in Queue Z. Prject Z2 which had sme cst allcatin fr the five 230 kv breakers prvided new GSU data n May 25, The new GSU has higher impedance. If all five breakers are determined t still be needed with the new GSU impedance, the riginal cst allcatin will nt change. If nly fur breakers are nw required, the cst allcatin fr the fur breakers that are still required will nt change. Example 2: Impact studies fr Queue Z started n May 10, Five 230 kv breakers at substatin Alpha were identified t be replaced due t several prjects in Queue Z. Prject Z2 which had sme cst allcatin fr the five 230 kv breakers prvided new GSU data n May 25, The new GSU has a lwer impedance. Nw six 230 kv breakers at substatin Alpha need t be replaced. Prject Z2 will be assigned 100% f the cst fr the sixth breaker and the cst allcatin fr the riginal five 230 kv breakers will nt change. The rules cncerning generatr and GSU changes will be applied t generatrs in Queue B and thereafter. B.3.4 Generatin Prject Excess MW Capabilities The machine data prvided by generatin prjects ften cntain MW capabilities that exceed the queued Capacity Intercnnectin Rights fr that prject. These additinal MWs may result in a system that des nt meet ReliabilityFirst Criteria fr certain cntingencies nt bserved in peratins such as bus faults, and ReliabilityFirst Standard IIC cntingencies (twer line, line fault with stuck breaker, faulted breaker). Cnsequently, after all generatin prjects in a given queue have executed a Generatin Intercnnectin Facility Study Agreement, the PJM system will be evaluated using the MW capabilities prvided by the Develpers t determine whether there are any bus fault r ReliabilityFirst Standard IIC vilatins. Any additinal system prblems will need t be rectified thrugh either limiting the generatr capability via hardware r upgrade f the Transmissin System t eliminate the vilatin. The rules cncerning excess prject MW capabilities will be applied t generatrs in Queue B and thereafter. B.3.5 Stability Cst Allcatin Methd All New Service Custmer prjects will be studied in queue rder as established under the PJM Tariff. If a stability cnstraint is identified during the study f a New Service Request, the New Service Custmer(s) which cntributes t the need fr that reinfrcement will be allcated a prtin f the csts fr the required Netwrk Upgrade t eliminate the stability cnstraint. 78

79 Attachment B: PJM Request Cst Allcatin Prcedures A New Service Custmer will be assigned csts in prprtin t the MW cntributin twards the need fr the Netwrk Upgrade. The determinatin f the MW cntributin fr each New Service Custmer is the margin between its MFO, r ttal capabilities, and the MW quantity at which the impact frm the request ceases t cause the need fr the Netwrk Upgrade. A New Service Request with any impact which wuld cause system instability withut a necessary Netwrk Upgrade, will have its requested MW quantity reduced in steps t estimate the stability limit where the disturbances in the stability study wuld nt cause any need fr system reinfrcement thrugh the implementatin f a Netwrk Upgrade. In each step f the MW reductin, the New Service Request s MW quantity is reduced by 50MW r 10% f its MFO, r ttal capability, whichever is larger, t examine if system stability is maintained at this reduced MW value. The MW cntributin fr stability cst allcatin fr the individual New Service Custmer is the difference between the MFO, r ttal capability, and the MW quantity at which the system stability is restred withut the need fr the Netwrk Upgrade. A New Service Custmer will be respnsible fr allcated csts, within previusly stated cst allcatin guidelines, if their New Service Queue Clsing Date ccurs less than 5 years fllwing the executin f the first Intercnnectin Service Agreement, r Upgrade Cnstructin Service Agreement, which identifies the need fr this Netwrk Upgrade. N depreciatin f the as-built Netwrk Upgrade cst will be used when allcating csts between New Service Custmers. Cst allcatin fr the engineering design f Netwrk Upgrades will terminate based n the cmpletin f the applicable Facilities Study. 79

80 Attachment C: PJM Generatin and Transmissin Intercnnectin Planning Team Rle Clarity Diagram Attachment C: PJM Generatin and Transmissin Intercnnectin Planning Team Rle Clarity Diagram 80

81 Attachment D: General Descriptin f Facilities Study Prcedure Attachment D: General Descriptin f Facilities Study Prcedure Intrductin A Facilities Study is an engineering study cnducted by the Transmissin Prvider t describe the mdificatins required t the Transmissin Prvider s (PJM s) Transmissin System t prvide the requested Generatr and/r Transmissin Intercnnectin Service. PJM may cntract with cnsultants, including the Intercnnected Transmissin Owner (ITO) and any ther affected Transmissin Owners (TO), t btain services r expertise. The purpse f the Facilities Study is t prvide, cmmensurate with any mutually agreed parameters regarding the scpe and degree f specificity described in Schedule A f the Facilities Study Agreement, cnceptual (r preliminary) design, and, as apprpriate, detailed design, plus cst estimates and prject schedules, t implement the cnclusins f the System Impact Study regarding the Attachment Facilities, Netwrk Upgrades and Lcal Upgrades (i.e. upgrades related t nn-tariff designated facilities) necessary t accmmdate the Intercnnectin Custmer's Intercnnectin Request(s). Examples f typical Facilities Study deliverables are preliminary single line diagrams and general arrangement drawings fr substatin wrk, and delineatin f prpsed study area and prpsed cnductr and structure designs fr transmissin line wrk. Remaining detailed design activities wuld be cmpleted during the cnstructin phase f the prject. The Facilities Study Agreement (FSA) between the Intercnnectin Custmer/Develper ( the Custmer ) and PJM will identify the scpe f facility additins and upgrades t be included in this study. The FSA may als include milestnes fr cmpletin f the Custmer s facility study, where such wrk cmpletin is critical t PJM s Facilities Study schedule. General Guidelines Facilities Study wrk will be initiated by a Kickff meeting attended by the ITO, affected TO(s), the Custmer, and PJM. The fllwing types f infrmatin will be cmmunicated at the Kickff meeting: The Custmer shall prvide a schedule fr cnstructin and anticipated cmmercial peratin f the Custmer s facilities. The Custmer s schedule shall include the date when backfeed pwer is required, and the dates fr anticipated test and cmmercial peratin f each generating unit r transmissin facility. Intercnnectin specific infrmatin, including but nt limited t: a ne-line diagram shwing the lcatin f the Pint f Intercnnectin, a custmer facility lcatin/site plan, a list f Intercnnectin Facilities and Ownership, if applicable, a list and wnership f Merchant Netwrk Upgrades, a ne-line diagram shwing lcatin and wnership f Metering Equipment, the Applicable Technical standards that apply t the Custmer Facility and the Intercnnectin Facilities, and 81

82 Attachment D: General Descriptin f Facilities Study Prcedure the Maximum Facility Output and/r the Nminal Rated Capability f the Custmer Facility. The scpe f the Custmer s, PJM s, ITO s and ther affected TO s facilities study wrk will be delineated, and a schedule fr cmpletin f Facilities Study elements will be established. The scheduled cmpletin f the Facilities Study shall nt extend beynd the time estimate prvided by the FSA. A tentative schedule fr Status meetings will be established. Status meetings may be necessary in thse instances where infrmatin abut ne r mre cmpleted elements f the Facilities Study may be critical t the Custmer s decisin t cntinue the Facilities Study. Results f PJM s Facilities Study shall be reprted t the Custmer in the frm f a Facilities Study Reprt ( the Reprt ). The Reprt must cntain a gd-faith estimate f csts and cnstructin schedules fr each new r upgraded facility. In additin, the Reprt must cntain sufficient detail abut the engineering design f each facility. This will prvide the Custmer with infrmatin necessary t perfrm due diligence n the wrk t be perfrmed by PJM, the ITO and ther affected TO(s). The Reprt, less cnfidential r sensitive material, will be integrated with ther Reprts frm ther Transmissin Owners (if applicable), and will als be psted n PJM s Web site. All Reprt materials must be capable f being included in an MS Wrd dcument, frmatted fr 8 ½ in. by 11 in. printing. The Reprt shall identify the Custmer s prject by the queue number assigned t the prject n PJM s web site. Fr example: Prject A57. Facilities Study reprts submitted t PJM shall cnsist f tw primary sectins: Transmissin Owner Facilities Study Summary Transmissin Owner Facilities Study Results 1. Transmissin Owner Facilities Study Summary Descriptin f Prject Amendments t the System Impact Study data r System Impact Study Results Prvide a general descriptin f the Custmer s prject that resulted in the need fr the additin and/r upgrade f facilities. The infrmatin under the General paragraph f the System Impact Study Reprt shall be used as the basis fr the Prject descriptin. Changes t the infrmatin prvided in the System Impact Study shall be nted and recrded. In general, significant changes t a Custmer s prject will nt be allwed within the existing queue psitin fr the Custmer s intercnnectin request. Hwever, changes t generatr data r generatr step-up transfrmer data, withdrawal f an intercnnectin Request with a lwer queue number, r ther changes allwed by PJM s business rules can cause the need t re-evaluate the Custmer s System Impact Study and amend the results. Intercnnectin Custmer s Submitted Milestne Schedule The Custmer s submitted prject schedule will be dcumented in this prtin f the Reprt. This schedule will be used as the basis fr develping the schedules fr 82

83 Attachment D: General Descriptin f Facilities Study Prcedure the purchase f equipment and the cnstructin f facilities upgrades and additins cntained in PJM s scpe f Facilities Study wrk. Scpe f Custmer s Wrk Descriptin f Facilities Included in the Facilities Study A general descriptin f transmissin lines, substatins, prtectin systems, etc. that are included in the Facilities Study Reprt. Ttal Csts f Transmissin Owner Facilities included in Facilities Study In general, the scpe f the Custmer s facility study wrk will be limited t the direct cnnectin facilities up t, but nt including, the pint f intercnnectin t a TO s facilities. The Custmer s facilities study results will be included in the Reprt t the extent required t adequately supprt PJM s Facility Study results. A summary level statement indicating the ttal estimated csts fr bth Attachment Facilities and Netwrk Upgrades included in the Facilities Study. Summary f Milestne Schedules fr Cmpletin f Wrk Included in Facilities Study: Summary level schedule fr detailed design, material & equipment prcurement, and cnstructin & testing fr Attachment Facilities and Netwrk Upgrades included in Facilities Study. This sectin shuld include a statement f cmparisn (i.e. alignment r misalignment) with Intercnnectin Custmer s milestne schedule. 2. Transmissin Owner Facilities Study Results Transmissin Lines New The Reprt shall include a purpse and necessity statement as well as a general descriptin f alternative rutes, terminal pints, gegraphic descriptin f terrain traversed by the new line, right-f-way width by segment, ptential use f cmmn crridrs where such use exists, and a descriptin f the permits required. The fllwing infrmatin must als be described; design criteria (may be summarized and reference published dcuments), nminal vltage rating, physical characteristics (verhead, undergrund, single circuit, duble circuit, AC, DC, etc), line MVA nrmal and emergency rating, BIL, line impedance (psitive and zer sequence), line and shield cnductr type and size, type f supprt structure, and grunding design. Applicable Transmissin Owner Technical Standards shuld be referenced in the Reprt. A specific reference t PJM Transmissin and Substatin Design Subcmmittee Technical Requirements (nte: upn apprval) must be made fr new r upgraded facilities. Material specificatins and a materials list, if available, may be included in the reprt r referenced. All permit requirements must be identified. 83

84 Attachment D: General Descriptin f Facilities Study Prcedure Attachments required: gegraphic map with Custmer facility lcatin/site plan, with prpsed transmissin line study area superimpsed. Attachments ptinal: drawings fr typical structure types. Transmissin Line Upgrades As applicable, the same infrmatin, as listed abve fr Transmissin Lines New, distinguishing between existing and new equipment. Attachments: As applicable, same as abve fr Transmissin Lines New. New Substatin/Switchyard Facilities The Reprt shall include a purpse and necessity statement, a general descriptin f the functinal statin design and layut, prpsed lcatin, and a descriptin f the ptential permits required. Als included shall be a descriptin f the structural design, the electrical design including rating specificatins and rating fr all majr electrical equipment (e.g. pwer transfrmers, circuit breakers, switches, instrument transfrmers, capacitr vltage transfrmers, etc.), and the prtective relaying, cmmunicatins, metering, and instrumentatin requirements. Applicable Transmissin Owner Technical Standards shuld be referenced in the Reprt. A specific reference t PJM Transmissin and Substatin Design Subcmmittee Technical Requirements (nte: upn apprval) must be made fr new r upgraded facilities. A Specific reference t the PJM Relay Philsphy and Design Standards (nte: upn apprval) must be made fr new r upgraded prtective relay equipment. Material specificatins and a materials list, if available, may be included in r referenced in the Reprt. All permit requirements must be identified. Attachments required: One-line diagram fr each substatin / switchyard where facilities are t be added r upgraded. General arrangement diagram shwing the physical layut f the new substatin facilities. Optinal Attachment: Relay, Instrumentatin, and Cntrl ne-line diagram. Upgrades t Substatin / Switchyard Facilities As applicable, the same infrmatin listed abve fr New Substatin / Switchyard Facilities, distinguishing between existing and new equipment. Attachments: As applicable, same as abve fr New Substatin / Switchyard Facilities. Metering & Cmmunicatins General requirements fr revenue and telemetry metering, SCADA RTU, and telecmmunicatins, crdinated with PJM requirements. 84

85 Attachment D: General Descriptin f Facilities Study Prcedure Envirnmental, Real Estate and Permitting Issues Assessment f envirnmental impacts related t Attachment Facilities and/r Netwrk Upgrades (i.e. Envirnmental Impact Study requirements, envirnmental permitting, sediment & ersin cntrl issues), real estate wnership / easement issues, siting and Right-f Way issues fr Transmissin Owner side f Pint f Intercnnectin. Summary f Results f Study Cst Estimates A table listing cnstructin cst estimates fr each new r upgraded facility shall be prvided. As applicable, identify and include all taxes and additinal charges such as CIAC. At a minimum, cst estimates shall be included with the fllwing level f detail, alng with the ttal csts (nte: keep applicable CIAC tax grss-up amunts separate frm ttal csts). Include bth direct and indirect csts in each cst categry: Attachment Facilities: Detailed Design Csts Material and Equipment Csts Cnstructin and Testing Csts Miscellaneus Csts (i.e., real estate fees, envirnmental studies, cntingencies, prject management/versight specify details) CIAC Tax Grss-up (if applicable) Each Netwrk Upgrade: Detailed Design Csts Material and Equipment Csts Cnstructin and Testing Csts Miscellaneus Csts (i.e., real estate fees, envirnmental studies, prject management/versight, cntingencies specify details) CIAC Tax Grss-up (if applicable) Additinal level f detail fr cst estimates shall be prvided if indicated in Schedule A f the Facilities Study Agreement. Schedules A milestne schedule, including majr milestnes (e.g. cmpletin f final design, prepare specificatins, slicit bids, cnstructin cmpletin) shall be prvided fr all facilities within PJM s and the TO s scpe f wrk. A statement cncerning the ability t meet the Custmer s scheduled milestnes must be included. 85

86 Attachment D: General Descriptin f Facilities Study Prcedure Additinal level f detail fr prject scheduled shall be prvided if indicated in the Facilities Study Agreement. Assumptins A list f assumptins, uncertainties and / r qualifiers that may adversely impact the estimated csts and/r schedules must be identified. Sme examples f items t be detailed in this sectin are envirnmental permitting, real estate/easement acquisitin, public / custmer ppsitin, equipment availability/ system cnstraints/time f year limitatins, scpe definitin with respect t accelerated schedule, cntractr cst variability. Infrmatin Required fr Intercnnectin Service Agreement A table with a cst breakdwn fr the FERC filing f the Intercnnectin Service Agreement must be prvided. The table shall include the ttal cst fr all facilities t be cnstructed by the TO. The csts must be itemized in the fllwing categries: Attachment Facilities: Direct Charges Labr Direct Charges Material Indirect Charges Labr Indirect Charges material Carrying Charges* Netwrk Facilities: Direct Charges Labr Direct Charges Material Indirect Charges Labr Indirect Charges material Carrying Charges* * The Carrying Charge Rate must be specified. Nte: The cst breakdwn indicated abve is fr use in the ISA in accrdance with FERC guidelines, and is in additin t the cst breakdwn detailed in Sectin 7. The fllwing are definitins fr the abve cst types: Direct Csts: These are csts directly assciated with the prject. These csts need t be separated int Direct Labr csts which include the cst f labr t design/ build/install the upgrades r facilities, and Direct Material csts which include the cst f the physical upgrades and equipment. 86

87 Attachment D: General Descriptin f Facilities Study Prcedure Indirect Csts: These csts include A&G expenses such as the salary f the payrll clerk. Carrying Charges: These csts are the time value f mney assciated with the prject (i.e., AFUDC). The interest rate must be specified. 87

88 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards E.1 Scpe The PJM Small Generatr Intercnnectin Applicable Technical Requirements and Standards ( Small Generatr Standards ) shall apply t all new generatr intercnnectins, within the PJM ftprint, with an aggregate size f 10 MW r less at the pint f intercnnectin. The Small Generatr Standards shall be read and cnstrued as t be cnsistent with the PJM Tariff ( Tariff ). In the event f any incnsistency between the terms and cnditins f the Small Generatr Standards and the terms and cnditins f the Tariff, the terms f the Tariff shall cntrl. All terms cntained in the Small Generatr Standards shall be defined as defined by the Tariff. While PJM strives t ensure that the infrmatin reflected herein is cmplete, accurate and reliable, it expressly disclaims any warranty, whether express r implied, as t infrmatin cntained. Entities relying n the infrmatin cntained herein d s at their wn risk. E.2 Purpse T align the applicable technical requirements used within PJM with the IEEE Standard 1547 fr Intercnnecting Distributed Resurces with Electric Pwer Systems, and t facilitate the precertificatin f manufactured generatin equipment and systems fr use within PJM. E.3 Backgrund and Discussin Develped by the PJM Small Generatr Intercnnectin Wrking Grup ( SGIWG ), the Small Generatin Standards define the unifrm technical requirements that each Intercnnected Transmissin Owner ( ITO ) and Electric Distributin Cmpany ( EDC ) requires fr intercnnecting t their facilities. The requirements as defined herein will gvern fr the intercnnectin f distributed generatin 10 MW r less. ITOs and EDCs may, by mutual agreement, elect t waive certain IEEE 1547 requirements and assciated exceptins and cnditins stated herein, but may nt add requirements t IEEE 1547 ther than the exceptins and cnditins cntained herein. Fr small generatrs qualifying fr intercnnectin under state rules, the state-apprved technical requirements and prcedures shall gvern. In the event that a small generatr has intercnnected under state rules and thereafter elects t participate in any PJM market, such small generatr must cmply with the terms f PJM's Small Resurce Intercnnectin Prcedure Manual and these Small Generatin Standards. The small generatr must submit a cmpleted Feasibility Study Request (Attachment N f the Tariff) and will be respnsible fr any subsequent study csts. Additinally, the small generatr will be required t execute PJM's three-party Intercnnectin Service Agreement with PJM and the lcal Transmissin Owner, and t the extent applicable, an Electric Distributin Cmpany, as the case may be. 88

89 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards E.4 General Applicatin Nte fr Transmissin System Intercnnectins In its present frm IEEE Standard 1547 is primarily intended t address generatr intercnnectins f 10 MVA r less t radial distributin systems. In rder t extend the use f IEEE Standard 1547 beynd this scpe t include cnnectin t transmissin55 facilities, it is necessary t clarify the meaning f Sectin t assure that system prtectin requirements are cmpatible with the established reliability criteria used fr thse systems. IEEE Standard 1547 Sectin (Area EPS Faults) requires that the DR unit shall cease t energize the Area EPS fr faults n the Area EPS circuit t which it is cnnected. Fr transmissin Intercnnectins, this implies that the prtectin scheme(s) be cmpatible and crdinate with the Area EPS prtectin scheme(s) used fr the line r substatin t which they are intercnnected, r be cmpatible and crdinate with new prtectin equipment installed due t the cnnectin f the generatin t this facility. E.5 Tariff / IEEE 1547 Definitin Crss-Reference IEEE Standard 1547 Tariff PCC (Pint f Cmmn Cupling) POI (Pint f Intercnnectin) Pint f DR Cnnectin Nt Applicable EPS (Electric Pwer System) Intercnnected Transmissin Owner Facilities Area EPS Operatr Intercnnected Transmissin Owner Nt Applicable Transmissin Prvider (PJM) DG (Distributed Generatin) Intercnnected Generatin Custmer Facilities which are nt cnnected t the Bulk Pwer Transmissin System DR (Distributed Resurces) Intercnnected Generatin Facility which is nt cnnected t the Bulk Pwer Transmissin System Intercnnectin Equipment Nt Applicable Intercnnectin System Intercnnectin Facilities Nt Applicable Intercnnectin Custmer Facilities Electric Pwer System, lcal Nt Applicable Electric Pwer System, area Nt Applicable 5 In the cntext used here, transmissin systems are systems 69 kv r greater r netwrked lwer vltage systems that are used fr backbne energy delivery within smaller gegraphic areas, much the same as mst 69 kv systems. 89

90 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards IEEE Standard 1547 Cease t Energize Tariff Nt Applicable (Cessatin f energy utflw capability) Nte: The illustratin belw is fr crss-reference f Tariff and IEEE 1547 terms nly. E.6 Applicable Technical Requirements and Standards IEEE Standard 1547 shall cnstitute the ttal technical requirements and standards fr intercnnectin f small generatrs f 10 MW and belw with the fllwing nted exceptins, additins, and clarificatins. IEEE Standard cnstitutes the requirement fr test cnfrmance t IEEE Standard IEEE Standard Requirement Vltage Regulatin Exceptins r Additins Nne. See Applicatin Nte 1. 90

91 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards IEEE Standard Requirement Exceptins r Additins Integratin with Area EPS Grunding Nne. See Applicatin Nte Synchrnizatin Nne. See Applicatin Nte Distributin Secndary Grid Netwrks (under develpment) Nne. See Applicatin Nte Distributin Secndary Spt Netwrks Exceptin. CmEd nly allws Spt Netwrk intercnnectins n an exceptin basis r where state cmmissin regulatins specify requirements Inadvertent Energizatin f the Area EPS Nne Mnitring Nne. See Applicatin Nte Islatin Device Nne. See Applicatin Nte Prtectin frm EMI Nne Surge Withstand Perfrmance Nne Paralleling Device Withstand Nne Area EPS Faults PEPCO and PSEG exceptin fr Islanding prtectin. See Applicatin Ntes 7 and Area EPS Reclsing Crdinatin Nne. See Applicatin Nte Vltage Nne. See Applicatin Nte Frequency Nne Lss f Synchrnism Nne Recnnectin t Area EPS: (a) Vltage Requirement (b) Frequency Requirement Nne. See Applicatin Nte 9. Nne. See Applicatin Nte Limitatin f DC Injectin Nne Limitatin f Flicker induced by the DR Nne. See Applicatin Nte Harmnics PPL exceptin. See Applicatin Nte Unintentinal Islanding PEPCO and PSEG exceptins. See Applicatin Nte

92 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards IEEE Standard Requirement Exceptins r Additins 5.1 Design Test Nne. See Applicatin Nte Prductin Tests Nne. See Applicatin Nte Intercnnectin Installatin Evaluatin Nne. 5.4 Cmmissining Tests Nne. 5.5 Peridic Tests Nne. E.6.1 Applicatin Ntes Vltage Regulatin. (Applicatin Nte 1) Depending n size f generatin (relative t EPS strength) and lcatin f intercnnectin, the intercnnected generatin may be required t prvide r absrb reactive pwer and/r fllw a vltage schedule t maintain an acceptable vltage prfile n the EPS with the additin f the new generating facility Integratin with Area EPS grunding. (Applicatin Nte 2) Where new transfrmers are required: AP requires a wye-grunded cnnectin n the T.O. side f the DG step up transfrmer; and PEPCO s requirement fr an islatin transfrmer including its cnfiguratin at 13.8 kv and abve, will be determined n a case by case basis and will depend n the generating facility s lcatin and system cnfiguratin. AP and PEPCO requirements specified abve d nt apply if a generatr is being cnnected t a system n the lw vltage side f an existing Intercnnectin Custmer transfrmer. Other Transmissin Owners within PJM will accept a delta r wye-ungrunded cnnectin prvided that adequate prtectin is prvided by the DG t detect a grund and limit any ver-vltage t an acceptable level n the TO s system. Adequate prtectin includes vltage mnitring n the high side f the DG main transfrmer using phase t grund cnnected VTs. Als see Applicatin Nte 5 fr an additinal AEP Applicatin Nte fr grunding crdinatin related t peratin f islating devices Synchrnizatin. (Applicatin Nte 3) IEEE 1547 Synchrnizatin vltage fluctuatin requirement f +/- 5% is applicable as stated. Flicker requirement guidance is prvided by IEEE Standard 519 and IEEE Flicker Task Frce P1453. Hwever, the requirement which must be met fr is t nt cause vltage and /r frequency disturbances which are bjectinable t ther EPS custmers during actual peratin f DR Distributin Secndary Grid Netwrks. (Applicatin Nte 4) IEEE 1547 presently des nt address the requirements fr Secndary Grid Netwrks. These intercnnectin requests will be evaluated n a case by case basis. 92

93 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards Mnitring. (Applicatin Nte 5) Each DR unit f 250 kva r mre r DR aggregate f 250 kva r mre at a single PCC shall have prvisins fr mnitring its cnnectin status, real pwer utput, reactive pwer utput, and vltage at the pint f DR cnnectin. Lcal mnitring prvisins, such as panel meters and indicating lights, may be acceptable t meet these requirements in certain cases. An Internet-based SCADA alternative (see Infrmative Annex #2) was develped as a reliable and ecnmical alternative t direct SCADA cmmunicatins with the TO. In additin t generally lwer installed cst fr the Internet SCADA alternative, the Internet nging cmmunicatin csts may be mre cst effective t ther alternatives, especially thse that require leased telephne circuits. Nte: Infrmative Annex #2 is available n the PJM Web site ( and select frm amng the 10 specific dcuments listed under the heading Infrmatin Annex #2 References fr Manual 14D, Attachment H. When full-time dedicated SCADA cmmunicatins are required (see Transmissin Owner ( TO ) listing belw and refer t the SCADA REQUIREMENTS spreadsheet - Infrmative Annex #1) the DG Owner, PJM r the TO will prvide and/r install a suitable SCADA Remte Terminal Unit in accrdance with the specificatins prvided in Infrmative Annex #2 r an alternative mutually suitable t the DG Owner, Transmissin Owner and PJM. The PJM TOs agree t accept the Internet SCADA alternative (see Infrmative Annex #2), in lieu f direct SCADA cmmunicatins with the TO, except in circumstances where the Internet SCADA alternative des nt meet certain TO technical requirements specified and justified by the TO. If the TO, PJM and DR wner mutually agree, specificatins fr ther suitable interfaces between the DG and TO SCADA can be acceptable. Where applicable, this apprach wuld allw a DR wner t use a SCADA prtcl f their chice and prvide an interface clser t the Transmissin Owner s SCADA facility. Such an installatin must prvide adequate cmmunicatin perfrmance, suitable t PJM and the TO. Installatin f cmmunicatins facilities (internet service, leased telephne circuits, fiber ptics, etc.), cmmunicatins facility Operatin and Maintenance, and ther nging csts are the respnsibility f the Intercnnectin Custmer. Installatin f cmmunicatins facilities (typically leased telephne circuits), cmmunicatins facility Operatin and Maintenance, and ther nging csts are the respnsibility f the Intercnnectin Custmer. PJM requires real-time telemetry data (MW and MVAR) fr Capacity Resurces, Energy Resurces 10MW and abve, r Energy Resurces able t set LMP. PJM als requires interval revenue metering data (KWH and KVARH data at 5 minute intervals prvided hurly). See the fllwing fr specific intercnnectin requirements based n Transmissin Owner Zne: Allegheny Pwer Requirement fr SCADA is determined n a case-by-case basis by Allegheny Pwer. 93

94 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards American Electric Pwer Real-time telemetry (SCADA) generally required fr generatin greater than 2.5 MW cnnected t the distributin system and all cnnectins at transmissin vltages. Baltimre Gas and Electric Requires BG&E specified telemetry (peridic, nt real time), installed by BG&E, fr all generatr intercnnectins. Cmmnwealth Edisn Cmpany Requires real-time telemetry fr any intercnnectin f 10 MW r greater, r fr intercnnectins where transfer trip is required (generally 2.5 MW and abve) fr the intercnnectin. Daytn Pwer and Light Determines real-time telemetry (SCADA) requirements n a case-by-case basis. Dminin Requires a SCADA RTU cmpatible with Dminin s SCADA system when the rati f Light Lcal Lad t Maximum Rated Generatin Capacity rati is less than 5. Duquesne Light Cmpany At DLC's discretin the Intercnnectin Custmer can be required t install and maintain a dedicated cmmunicatins link, cmpatible with DLC's equipment, t prvide telemetry (SCADA) t DLC's Operatin Center. The preferred cmmunicatins prtcl fr RTU cmmunicatins is DNP 3.0. The installed SCADA shall cmply with the current NERC Cyber Security standards. First Energy FE determines real time telemetry (SCADA) requirements n a case by case basis fr intercnnectin t the radial distributin system. Real time telemetry is required fr all intercnnectins t the Transmissin System, generally 23 kv and abve. Old Dminin Electric Cperative ODEC requires real-time SCADA fr DG resurces in the 2-10 MW range, t include MW and MVAR and status f the intercnnecting circuit breaker. This des nt necessarily imply a full RTU but culd be a data link with the plant / unit cntrl system. DNP 3.0 is the supprted prtcl. Orange and Rckland All facilities ver 1,000 kw cnnected t the distributin system must have equipment t cntinuusly telemeter the fllwing data t Orange and Rckland's Energy Cntrl Center via a leased telephne line. This data will be prvided thrugh the installatin f a REMOTE TERMINAL UNIT (RTU) in the Develper's facility. The RTU shall use DNP 3.0 prtcl (unless therwise stated). PECO Energy - Requires real-time telemetry fr intercnnectins f 5 MW r greater. PHI Cmpanies (Atlantic City Electric C., Delmarva Pwer & Light C. and Ptmac Electric Pwer C.) Atlantic City Electric C. and Delmarva Pwer & Light C. require a RTU fr all generatr intercnnectins, and real-time MWH and MVH telemetry fr all intercnnectins fr which generatrs participate in PJM markets. Fr generatrs nt participating in PJM markets real-time telemetry is required fr generatrs 3 MW and abve. Nte: The specific lcatin and circumstances f a generatr intercnnectin may make telemetry necessary, even when telemetry wuld nt rdinarily be required. 94

95 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards PEPCO requires a RTU fr all generatr intercnnectins, and real time telemetry fr all intercnnectins that participate in PJM markets. Fr generatrs nt participating in PJM markets real-time telemetry is required fr generatrs 10 MW and abve. PPL Requires full-time dedicated SCADA RTU cmpatible with PPL EU s SCADA system fr intercnnectins 2.5 MW and abve r at 69 kv and abve. PSEG Real-time telemetry (SCADA) requirement is determined n a case-by-case basis. Smaller MW size generatr intercnnectins usually require a lw-cst alternative system. UGI Requires real-time telemetry (SCADA) cmpatible with the UGI SCADA system fr all intercnnectins 1MW r greater and fr all 66 kv and abve intercnnectins Islatin Device Requirement. (Applicatin Nte 6) When the Area EPS perating practices require an islatin device, that device must be readily accessible t the Area EPS peratr, lckable in the pen psitin, and must prvide a visible break in the electrical cnnectin between the generatr and the Area EPS. The Islatin Device must be rated fr the vltage and current requirements f the installatin. The Islatin Device may be electrically lcated anywhere between the pint f cmmn cupling and the generatr. Hwever, the custmer shuld cnsider the impact f the electrical lcatin f the Islatin Device. If the Islatin Device is electrically at r near the generatr, and the Area EPS Operatr uses the Islatin Device t prvide clearance fr wrker safety, the custmer will be unable t perate its generatr t maintain electric supply t all r a prtin f its lad n the Lcal EPS during an utage f the Area EPS. A draw-ut breaker may be used t meet the Islatin Device requirement if it is lckable in the withdrawn psitin and has a visible psitin indicatr. Fr facilities intercnnecting at vltages exceeding 600 vlts, when required by the EDC, the Islating Device required t allw EDC persnnel t safely islate the generatr must have a grund grid designed and installed in accrdance with IEEE 80 and t specificatins t be prvided by the EDC. This grund grid limits the grund ptential rise shuld a fault ccur during switching peratins. Operatin f this Islatin Device must be restricted t EDC persnnel and prperly trained peratrs designated by the Custmer. Designated Custmer persnnel may be required t learn and adhere t the EDC s Switching and Tagging prcedures Area EPS Faults Area EPS Fault Prtectin requirement fr typical intercnnectin: (Figures 7A, 7B and 7C n the fllwing pages are intended t be representative f typical cnnectins t radial and netwrked lines, specific requirements will be determined by PJM and the T.O during PJM Feasibility and Impact Studies n a case-by-case basis.) Figure 7A One-Line Diagram fr a Typical Intercnnectin t a Radial Distributin System Typical Prtective Relaying Functinal Requirements 27 Under-vltage (3 phases, 1 phase if 50/51G can be applied) 59 Over-vltage (3 phases, 1 phase if 50/51G can be applied) 95

96 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards Typical Prtective Relaying Functinal Requirements 81O Over-frequency (1 phase required) 81U Under-frequency (1 phase required) 25 Synchrnizing check (1 phase required) 32* Pwer* (If required, 1 r 3 phase depending n type) 50/51** Phase instantaneus and time vercurrent (3 phases if required), r 21** Phase distance relay (3 phases if required) 50/51G*** Grund instantaneus and time vercurrent (1 if applicable) * If required due t reverse pwer limitatins. ** 50/51 r 21 but nt bth required. *** Only if transfrmer / generatr cnnectin allws grund fault current cntributin t EPS grund fault Additinal Prtective Relaying Functinal Requirements (as Required) Dead line clsing cntrl (27 and/r 25 functin) at EPS surce breaker(s), line reclser(s), etc. Larger facilities may require the installatin f additinal equipment such as directinal relaying at the substatin feeding the circuit. Als see Applicatin Ntes 7 and 10 fr transfer trip and unbalance functinal requirements. Vltage Unbalance Prtectin In accrdance with ANSI C84.1, Annex D, Sectin D.2 Recmmendatin, vltage unbalance at the pint f cmmn cupling caused by the DG equipment under n lad cnditins shall nt exceed 3% (calculated by dividing the maximum deviatin frm average vltage by the average vltage, with the result multiplied by 100). 96

97 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards Nte: The present versin f IEEE 1547 is primarily intended t be applicable t intercnnectin f DR n radial distributin systems (Sectin 1.3 Limitatins - Installatin f DR n radial primary and secndary distributin systems is the main emphasis f this standard, ). Frm a practical standpint, this represents an upper limit f 2.5 t 5 MW n typical 13 kv EDC distributin circuits, unless it is a dedicated circuit cnstructed fr the sle purpse f intercnnecting the DR. Larger facilities will generally require intercnnectin t the EDC s sub-transmissin r transmissin system. These larger facilities may require additinal r specific prtectin equipment necessary t crdinate with the EDC s prtectin practices. Additinal AEP Applicatin. In its review f the prpsed small generatr intercnnectin request, AEP may determine that a lesser percent unbalance limit is required due t vltage unbalance already present frm existing custmer lads, such as certain cmpressr mtrs and pwer electrnic lads, in the electrical vicinity. Figure 7B One-Line Diagram fr a Typical Intercnnectin t a Lped (Netwrk) System Typical and Additinal Prtective Relaying Functinal Requirements Same as Figure 7A abve and thers as may be required t be cmpatible with and crdinate with EPS transmissin system prtectin. In general, requirements develped t cnnect 10 MVA and smaller generatin t lped netwrked sub-transmissin systems will be mre invlved and diverse than thse needed fr radial distributin systems. Additinal cnsideratins may be required. Figure 7C One-Line Diagram fr a Typical Intercnnectin t a Radial Transmissin System Typical and Additinal Prtective Relaying Functinal Requirements Same as Figure 7A abve and thers as may be required t be cmpatible with and crdinate with EPS transmissin system prtectin. Figure 7A One-Line Diagram fr a Typical Intercnnectin t a Radial Distributin System 97

98 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards Figure 7B One-Line Diagram fr a Typical Intercnnectin t a Lped (Netwrk) System 98

99 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards Figure 7C One-Line Diagram fr a Typical Intercnnectin t a Radial Transmissin System Vltage. (Applicatin Nte 8) In cases where the DG interface is via an ungrunded transfrmer cnnectin at the PCC, the vltage sensing must be dne n the T.O. side f the transfrmer. This vltage sensing must be Phase - Grund cnnected fr all three phases. Vltage Unbalance Prtectin. In accrdance with ANSI C84.1, Annex D, Sectin D.2 Recmmendatin, vltage unbalance at the pint f cmmn cupling caused by the DG equipment under n lad cnditins shall nt exceed 3% (calculated by dividing the maximum deviatin frm average vltage by the average vltage, with the result multiplied by 100) Recnnectin t Area EPS. (Applicatin Nte 9) Fr larger generating units, an Area EPS may require verbal cmmunicatin with the System Operatr befre returning generatin t the system Limitatin f Flicker induced by DR. (Applicatin Nte 10) Requirement guidance is prvided by IEEE Standard 519 and IEEE Flicker Task Frce P1453. Hwever, the requirement which must be met fr is t nt cause vltage and /r frequency disturbances which are bjectinable t ther EPS custmers during actual peratin f DR Harmnics. (Applicatin Nte 11) In additin t the IEEE 1547 Harmnics requirement [i.e., each DG installatin must, at its PCC, meet the injected harmnic current distrtin limits prvided in IEEE 1547 Table 3 (excerpt IEEE 519 Table 10.3)] when multiple DG units are perating at different PCCs, each alne may meet the preceding current injectin limit. Hwever, the aggregate impact f all the DG units 99

100 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards culd still cause vltage distrtin, which wuld impact ther nn-dg custmers. Therefre, the aggregate vltage distrtin at EACH PCC must als nt exceed IEEE 519, Table If the limits described in IEEE 519, Table 11.1 are exceeded, the ffending DG is respnsible fr any apprpriate crrective actins taken by the intercnnecting transmissin wner t mitigate the prblem. Studies will be perfrmed t determine if excessive harmnic distrtin will ccur prir t installatin f the DG. Hwever, it may nt be pssible t predict the net level f vltage distrtin befre each new DG installatin n a given circuit. Vltage distrtin in excess f IEEE 519 can be used as a benchmark t trigger crrective actin (including discnnectin f DG units) if service interference exists. Nte: Additinal PPL Applicatin Nte: PPL has a requirement fr any ne Custmer (lad, generatin, etc.) t limit the vltage THD (Ttal Harmnic Distrtin) t 2.5% r less fr distributin vltages and 1.5% at 69 kv. PPL allws a smaller fixed limit fr each custmer thereby sharing allwable harmnic cntributin rather than applying a first-cme first-served principle t successive intercnnectin requests Unintentinal Islanding. (Applicatin Nte 12) The Unintentinal Islanding requirement can be met by the fllwing: Transfer trip. Sensitive Frequency and Vltage relay settings, with a shrt tripping time delay, where the maximum DR aggregate generatin net utput t the EPS is cnsiderably less than the expected minimum islanded EPS lad. Typically the islanded lad must be greater than tw t three times the maximum net islanded DR utput.* DR certified t pass an anti-islanding test. Reverse r minimum pwer flw Relay limited. Other anti-islanding means such as frced frequency r vltage shifting. * Exceptins t B abve: PSEG Optin B nly applicable t aggregate DR intercnnectins f 1MW and belw. PEPCO Optin B generally nt applicable fr DR intercnnectins which exprt energy t the PEPCO system regardless f generatin and lad mismatch. In accrdance with Sectin Area EPS reclsing crdinatin, a 2-secnd respnse time may nt be adequate t crdinate with the Area EPS reclsing practices. This may result in damage t the generatr upn reclsing f the EPS surce. In sme instances, n a case-bycase basis, the EPS peratr may allw the reclsing time t be increased r add synchrnism check supervisin t prvide crdinatin. Increasing the reclsing time in sme cases will have an unreasnable impact n ther custmers. Other means, such as transfer trip, must then be used t insure islatin f the generatr befre autmatic circuit reclse. Optins fr Satisfying 5.1 Design and 5.2 Prductin Test Requirements. Design and Prductin tests requirements may be satisfied with certified equipment, althugh certified equipment is nt required, cnsistent with the fllwing criteria: 100

101 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards The small generating facility equipment prpsed fr use separately r packaged with ther equipment in an intercnnectin system shall be cnsidered certified fr intercnnected peratin if (1) it has been tested in accrdance with IEEE and the apprpriate cdes and standards referenced belw by any Natinally Recgnized Testing Labratry (NRTL) recgnized by the United States Occupatinal Safety and Health Administratin t test and certify intercnnectin equipment pursuant t the relevant cdes and standards listed belw, (2) it has been labeled and is publicly listed by such NRTL at the time f the intercnnectin applicatin, and (3) such NRTL makes readily available fr verificatin all test standards and prcedures it utilized in perfrming such equipment certificatin, and, with cnsumer apprval, the test data itself. The NRTL may make such infrmatin available n its Web site and by encuraging such infrmatin t be included in the manufacturer s literature accmpanying the equipment. The Intercnnectin Custmer must verify that the intended use f the equipment falls within the use r uses fr which the equipment was tested, labeled, and listed by the NRTL. Certified equipment shall nt require further type-test review, testing, r additinal equipment t meet the requirements f this intercnnectin prcedure; hwever, nthing herein shall preclude the need fr an n-site cmmissining test by the parties t the intercnnectin nr fllw-up prductin testing by the NRTL r peridic tests per IEEE 1547 Sectin 5.5. If the certified equipment package includes nly interface cmpnents (switchgear, inverters, r ther interface devices), then an intercnnectin custmer must shw that the generatr r ther electric surce being utilized with the equipment package is cmpatible with the equipment package and is cnsistent with the testing and listing specified fr this type f intercnnectin equipment. Prvided the generatr r electric surce, when cmbined with the equipment package, is within the range f capabilities fr which it was tested by the NRTL, and des nt vilate the interface cmpnents' labeling and listing perfrmed by the NRTL, n further design review, testing r additinal equipment n the custmer side f the pint f cmmn cupling shall be required t meet the requirements f this intercnnectin prcedure. An equipment package des nt include equipment prvided by the utility. Any equipment package apprved and listed in a state by that state s regulatry bdy fr intercnnected peratin in that state prir t the effective date f these small generatr intercnnectin technical requirements shall be cnsidered certified under these prcedures fr use in that state. E.7 Relevant Cdes and Standards IEEE 1547 Standard fr Intercnnecting Distributed Resurces with Electric Pwer Systems (including use f IEEE testing prtcls t establish cnfrmity) UL 1741 Inverters, Cnverters, and Cntrllers fr Use in Independent Pwer Systems IEEE Std IEEE Recmmended Practice fr Utility Interface f Phtvltaic (PV) Systems NFPA 70 Natinal Electrical Cde 101

102 Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards IEEE Std C (R1944) IEEE Standard Surge Withstand Capability (SWC) Tests fr Prtective Relays and Relay Systems IEEE Std C (1995) IEEE Standard Withstand Capability f Relay Systems t Radiated Electrmagnetic Interference frm Transceivers IEEE Std C (R2002) IEEE Guide fr the Prtectin f Netwrk Transfrmers IEEE Std C , IEEE Standard Requirements fr Secndary Netwrk Prtectrs IEEE Std C , IEEE Recmmended Practice n Characterizatin f Surges in Lw-Vltage (1000V and Less) AC Pwer Circuits IEEE Std C (R2002) IEEE Recmmended Practice n Surge Testing fr Equipment Cnnected t Lw-Vltage (1000V) and Less) Pwer Circuits ANSI C Electric Pwer Systems and Equipment -Vltage Ratings (60 Hertz) IEEE Std , IEEE Standard Dictinary f Electrical and Electrnic NEMA MG , Mtrs and Small Resurces, Revisin 3 IEEE Std , IEEE Recmmended Practices and Requirements fr Harmnic Cntrl in Electrical Pwer Systems NEMA MG (Rev 2004), Mtrs and Generatrs, Revisin 1 102

103 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards Scpe The PJM Small Generatr Intercnnectin Applicable Technical Requirements and Standards ( Small Generatr Standards Attachment E-1 ) shall apply t all new generatr intercnnectins, within the PJM ftprint, with an aggregate size f greater than 10 MW up t 20 MW at the pint f intercnnectin. Attachment E-1 shall be read and cnstrued as t be cnsistent with the PJM Tariff ( Tariff ). In the event f any incnsistency between the terms and cnditins f Attachment E-1 and the terms and cnditins f the Tariff, the terms f the Tariff shall cntrl. All terms cntained in Attachment E-1 shall be defined as defined by the Tariff. While PJM strives t ensure that the infrmatin reflected herein is cmplete, accurate and reliable, it expressly disclaims any warranty, whether express r implied, as t infrmatin cntained. Entities relying n the infrmatin cntained herein d s at their wn risk. Purpse T align the applicable technical requirements fr Small Generatr Intercnnectins (Small Generatrs are 20 MW and less per PJM s FERC-apprved Tariff) used within PJM with the IEEE Standard 1547 fr Intercnnecting Distributed Resurces with Electric Pwer Systems t facilitate transparency fr perspective Generatr Intercnnectin Custmers, pre-certificatin entities (see 5.1 and 5.2) and equipment manufacturers ding business within the PJM ftprint. Because IEEE Standard 1547 and PJM s Applicable Standard Attachment H t PJM Manual 14B are limited t a maximum f 10 MW and primarily intended fr generatr intercnnectins t radial distributin systems, PJM stakehlders, thrugh the Small Generatr Intercnnectin Wrking Grup, recgnized a need t fill the gap between 10 MW and 20 MW by develping a cmpanin Applicable Standard based n the cre IEEE 1547 requirements with changes and additins as required t address the larger MW size and greater diversity f Electric Pwer System cnfiguratins t be included. Backgrund and Discussin Attachment E-1 was develped by the PJM Small Generatr Intercnnectin Wrking Grup ( SGIWG ). The Small Generatin Standards define the unifrm technical requirements that each Intercnnected Transmissin Owner ( ITO ) and Electric Distributin Cmpany ( EDC ) require fr intercnnecting t their facilities. The requirements as defined herein will gvern fr the intercnnectin f distributed generatin greater than 10 MW up t 20 MW. Attachment E-1 is a cmpanin dcument t Attachment E: Small Generatr (10 MW r Less) Technical Requirements and Standards. ITOs and EDCs may, by mutual agreement, elect t waive certain IEEE 1547 requirements and assciated exceptins and cnditins stated herein, but may nt add requirements t IEEE 1547 ther than the exceptins and cnditins cntained herein. Fr Small Generatrs qualifying fr intercnnectin under state rules, the state-apprved technical requirements and prcedures shall gvern. In the event that a Small Generatr has intercnnected under 103

104 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards state rules and thereafter elects t participate in any PJM market, such Small Generatr must cmply with the terms f PJM's Small Resurce Intercnnectin Prcedure Manual and these Small Generatin Standards. The Small Generatr must submit a cmpleted Feasibility Study Request (Attachment "N" f the Tariff), and will be respnsible fr any subsequent study csts. Additinally, the Small Generatr will be required t execute PJM's three-party Intercnnectin Service Agreement with PJM and the lcal Transmissin Owner, and t the extent applicable, an Electric Distributin Cmpany as the case may be. General Applicatin Nte fr Transmissin System Intercnnectins In its present frm IEEE Standard 1547 is primarily intended t address generatr intercnnectins f 10 MVA r less t radial distributin systems. In rder t extend the use f 6 IEEE Standard 1547 beynd this scpe t include cnnectin t transmissin facilities, it is necessary t clarify the meaning f Sectin t assure that system prtectin requirements are cmpatible with the established reliability criteria used fr thse systems. IEEE Standard 1547 Sectin (Area EPS Faults) requires that the DR unit shall cease t energize the Area EPS fr faults n the Area EPS circuit t which it is cnnected. Fr Transmissin Intercnnectins this implies that the prtectin scheme(s) be cmpatible and crdinate with the Area EPS prtectin scheme(s) used fr the line r substatin t which it is intercnnected r cmpatible and crdinates with new prtectin equipment installed due t the cnnectin f the generatin t this facility. Generatr installatins greater than 10 MW are nt typically intercnnected t radial distributin circuits f nminal 13 kv r less. 10 MW t 20 MW generatr intercnnectins will generally be t system vltages f 26 kv and higher which may be perated radially with nrmally pen ties t ther lines r netwrked and perated mre similar t higher vltage transmissin systems. Tariff / IEEE 1547 Definitin Crss-Reference IEEE Standard 1547 Tariff PCC (Pint f Cmmn Cupling) POI (Pint f Intercnnectin) Pint f DR Cnnectin Nt Applicable EPS (Electric Pwer System) Intercnnected Transmissin Owner Facilities Area EPS Operatr Intercnnected Transmissin Owner Nt Applicable Transmissin Prvider (PJM) DG (Distributed Generatin) Intercnnected Generatin Custmer Facilities which are nt cnnected t the Bulk Pwer Transmissin System 6 In the cntext used here, transmissin systems are systems 69 kv r greater, r netwrked lwer vltage systems which are used fr backbne energy delivery within smaller gegraphic areas much the same as mst 69 kv systems. 104

105 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards IEEE Standard 1547 Tariff DR (Distributed Resurces) Intercnnected Generatin Facility which is nt cnnected t the Bulk Pwer Transmissin System Intercnnectin Equipment Nt Applicable Intercnnectin System Intercnnectin Facilities Nt Applicable Intercnnectin Custmer Facilities Electric Pwer System, lcal Nt Applicable Electric Pwer System, area Nt Applicable Cease t Energize Nt Applicable (Cessatin f energy utflw capability) Nte: Illustratin belw is fr crss-reference f Tariff and IEEE 1547 terms nly. 105

106 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards Applicable Technical Requirements and Standards IEEE Standard 1547 shall cnstitute the ttal technical requirements and standards fr intercnnectin f small generatrs greater than 10 MW up t 20 MW with the fllwing nted exceptins, additins, and clarificatins. IEEE Standard cnstitutes the requirement fr test cnfrmance t IEEE Standard IEEE Standard Requirement Exceptins r Additins Vltage Regulatin Nne. See Applicatin Nte Integratin with Area EPS Grunding Nne. See Applicatin Nte Synchrnizatin Nne. See Applicatin Nte Distributin Secndary Grid Netwrks (under develpment) Nt applicable fr generatr intercnnectins 10 MW and abve Distributin Secndary Spt Netwrks Generally nt applicable fr generatr intercnnectins f 10 MW and greater. Rare 106

107 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards IEEE Standard Requirement Exceptins r Additins exceptins t be handled n a case-by-case basis Inadvertent Energizatin f the Area EPS Nne Mnitring Nne. See Applicatin Nte Islatin Device Nne. See Applicatin Nte Prtectin frm EMI Nne Surge Withstand Perfrmance Nne Paralleling Device Withstand Nne Area EPS Faults PEPCO and PSEG exceptin fr Islanding prtectin. See Applicatin Ntes 6, 7 & Area EPS Reclsing Crdinatin Nne. See Applicatin Nte Vltage Nne. See Applicatin Nte Frequency Nne Lss f Synchrnism Nne Recnnectin t Area EPS Vltage Requirement Frequency Requirement Nne. See Applicatin Nte 8. Nne. See Applicatin Nte Limitatin f DC Injectin Nne Limitatin f Flicker induced by the DR Nne. See Applicatin Nte Harmnics PPL exceptin. See Applicatin Nte Unintentinal Islanding PEPCO and PSEG exceptins. See Applicatin Nte Design Test Nne. See Applicatin Nte Prductin Tests Nne. See Applicatin Nte Intercnnectin Installatin Evaluatin Nne. 5.4 Cmmissining Tests Nne. 5.5 Peridic Tests Nne. 107

108 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards Applicatin Ntes Vltage Regulatin. (Applicatin Nte 1) Depending n size f generatin (relative t EPS strength) and lcatin f intercnnectin, the intercnnected generatin may be required t prvide r absrb reactive pwer and/r fllw a vltage schedule t maintain an acceptable vltage prfile n the EPS with the additin f the new generating facility Integratin with Area EPS grunding. (Applicatin Nte 2) Where new transfrmers are required: AP requires a wye-grunded cnnectin n the T.O. side f the DG step up transfrmer; and PEPCO s requirement fr an islatin transfrmer including its cnfiguratin at 13.8 kv and abve, will be determined n a case-by-case basis and will depend n the generating facility s lcatin and system cnfiguratin. AP and PEPCO requirements specified abve d nt apply if a generatr is being cnnected t a system n the lw vltage side f an existing Intercnnectin Custmer transfrmer. Other Transmissin Owners within PJM will accept a delta r wye-ungrunded cnnectin prvided that adequate prtectin is prvided by the DG t detect a grund and limit any ver-vltage t an acceptable level n the TO s system. Adequate prtectin includes vltage mnitring n the high side f the DG main transfrmer using phase t grund cnnected VTs. Als see Applicatin Nte 5 fr an additinal AEP Applicatin Nte fr grunding crdinatin related t peratin f islating devices Synchrnizatin. (Applicatin Nte 3) IEEE 1547 Synchrnizatin vltage fluctuatin requirement f +/- 5% is applicable as stated. Flicker requirement guidance is prvided by IEEE Standard 519 and IEEE Flicker Task Frce P1453. Hwever, the requirement which must be met fr is t nt cause vltage and /r frequency disturbances which are bjectinable t ther EPS custmers during actual peratin f DR Mnitring. (Applicatin Nte 4) Aggregate DR intercnnectin greater than 10 MW at a single PCC shall have SCADA prvisins fr mnitring its cnnectin status, real pwer utput, reactive pwer utput, and vltage at the pint f DR cnnectin. (See Infrmative Annex #1 fr specific mnitred quantities required by each Area EPS Operatr.) An Internet-based SCADA alternative (see Infrmative Annex #2), was develped as a reliable and ecnmical alternative t direct SCADA cmmunicatins with the Area EPS Operatr. In additin t generally lwer installed cst fr the Internet SCADA alternative, the Internet nging cmmunicatin csts may be mre cst effective t ther alternatives, especially thse that require leased telephne circuits. When full-time dedicated SCADA cmmunicatins are required (see Infrmative Annex #1) the DG Owner, PJM r the Area EPS Operatr will prvide and/r install a suitable SCADA Remte Terminal Unit in accrdance with the specificatins prvided 108

109 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards in Infrmative Annex #2 r an alternative mutually suitable t the DG Owner, Area EPS Operatr and PJM. The PJM Transmissin Owners (TOs) agree t accept the Internet SCADA alternative (see Infrmative Annex #2) in lieu f direct SCADA cmmunicatins with the TO, except in circumstances where the Internet SCADA alternative des nt meet certain TO technical requirements specified and justified by the TO. If the TO, PJM and DR wner mutually agree, specificatins fr ther suitable interfaces between the DG and TO SCADA can be acceptable. Where applicable, this apprach wuld allw a DR wner t use a SCADA prtcl f their chice and prvide an interface clser t the TO s SCADA facility. Such an installatin must prvide adequate cmmunicatin perfrmance, suitable t PJM and the TO. The Intercnnectin Custmer is respnsible fr the prtectin f the cmmunicatins circuit in accrdance with IEEE , r later revisins, and any additinal requirements f the cmmunicatins circuit prvider. Area EPS Operatrs will typically require SCADA mnitring at the Pint f Intercnnectin as well as at the generating units Islatin Device Requirement. (Applicatin Nte 5) When the Area EPS perating practices require an islatin device, that device must be readily accessible t the Area EPS peratr, lckable in the pen psitin, and must prvide a visible break in the electrical cnnectin between the generatr and the Area EPS. The Islatin Device must be rated fr the vltage and current requirements f the installatin. The Islatin Device may be electrically lcated anywhere between the pint f cmmn cupling and the generatr. Hwever, the custmer shuld cnsider the impact f the electrical lcatin f the Islatin Device. If the Islatin Device is electrically at r near the generatr, and the Area EPS Operatr uses the Islatin Device t prvide clearance fr wrker safety, the custmer will be unable t perate their generatr t maintain electric supply t all r a prtin f their lad n the Lcal EPS during an utage f the Area EPS. A drawut breaker may be used t meet the Islatin Device requirement if it is lckable in the withdrawn psitin and has a visible psitin indicatr. The Islating Device required t allw Area EPS Operatr persnnel t safely islate the generatr must have a grund grid designed and installed in accrdance with IEEE 80 and t specificatins t be prvided by the EDC. This grund grid limits the grund ptential rise shuld a fault ccur during switching peratins. Operatin f this Islatin Device must be restricted t the Area EPS Operatr s persnnel and prperly trained peratrs designated by the Custmer. Designated Custmer persnnel may be required t learn and adhere t the Area EPS Operatr s Switching and Tagging prcedures Area EPS Faults. (Applicatin Nte 6, 7, & 11) Area EPS Fault Prtectin requirement fr typical intercnnectin: (Figures 6A, 6B and 6C n the fllwing pages are intended t be representative f typical cnnectins t radial and netwrked lines. Specific requirements will be determined by PJM and the Area EPS Operatr during PJM Feasibility and Impact Studies n a case-by-case basis.) Figure 6A One-Line Diagram fr a Typical Intercnnectin t a Radial Distributin System 109

110 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards Typical Prtective Relaying Functinal Requirements 27 Under-vltage (3 phases, 1 phase if 50/51G can be applied) 59 Over-vltage (3 phases, 1 phase if 50/51G can be applied) 81O Over-frequency (1 phase required) 81U Under-frequency (1 phase required) 25 Synchrnizing check (1 phase required) 32* Pwer* (If required, 1 r 3 phase depending n type) 50/51** Phase instantaneus and time vercurrent (3 phases if required), r 21** Phase distance relay (3 phases if required) 50/51G*** Grund instantaneus and time vercurrent (1 if applicable) * If required due t reverse pwer limitatins. ** 50/51 r 21 but nt bth required. *** Only if transfrmer / generatr cnnectin allws grund fault current cntributin t EPS grund fault. Additinal Prtective Relaying Functinal Requirements (as Required) Dead line clsing cntrl (27 and / r 25 functin) at EPS surce breaker(s), line reclser(s), etc. Larger facilities may require the installatin f additinal equipment such as directinal relaying at the substatin feeding the circuit. Als see Applicatin Ntes 7 and 11 fr transfer trip and unbalance functinal requirements. Vltage Unbalance Prtectin. In accrdance with ANSI C84.1, Annex D, Sectin D.2 Recmmendatin, vltage unbalance at the pint f cmmn cupling caused by the DG equipment, under n lad cnditins shall nt exceed 3% (calculated by dividing the maximum deviatin frm average vltage by the average vltage, with the result multiplied by 100). 110

111 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards Nte: The present versin f IEEE 1547 is primarily intended t be applicable t intercnnectin f DR n radial distributin systems (Sectin 1.3 Limitatins - Installatin f DR n radial primary and secndary distributin systems is the main emphasis f this standard, ). Frm a practical standpint, this represents an upper limit f 2.5 t 5 MW n typical 13 kv EDC distributin circuits, unless it is a dedicated circuit cnstructed fr the sle purpse f intercnnecting the DR. Larger facilities will generally require intercnnectin t the EDC s sub-transmissin r transmissin system. These larger facilities may require additinal r specific prtectin equipment necessary t crdinate with the EDC s prtectin practices. Additinal AEP Applicatin Nte: In its review f the prpsed small generatr intercnnectin request, AEP may determine that a lesser percent unbalance limit is required due t vltage unbalance already present frm existing custmer lads, such as certain cmpressr mtrs and pwer electrnic lads, in the electrical vicinity. Figure 6B One-Line Diagram fr a Typical Intercnnectin t a Lped (Netwrk) System Typical and Additinal Prtective Relaying Functinal Requirements Same as Figure 6A abve and thers as may be required t be cmpatible with and crdinate with EPS transmissin system prtectin. In general, line prtectin requirements t cnnect generatin greater than 10MW t lped netwrked sub-transmissin systems will be mre invlved and diverse than thse needed fr cnnectin t radial distributin systems. Additinal cnsideratins may be required. Figure 6C One-Line Diagram fr a Typical Intercnnectin t a Radial Transmissin System Typical and Additinal Prtective Relaying Functinal Requirements Same as Figure 6A abve and thers as may be required t be cmpatible with and crdinate with EPS transmissin system prtectin. Figure 6A One-Line Diagram fr a Typical Intercnnectin t a Radial Distributin System 111

112 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards Figure 6B One-Line Diagram fr a Typical Intercnnectin t a Lped (Netwrk) System Figure 6C One-Line Diagram fr a Typical Intercnnectin t a Radial Transmissin System 112

113 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards Area EPS Reclsing Crdinatin. (Applicatin Nte 12) In accrdance with Sectin Area EPS reclsing crdinatin, a 2-secnd respnse time may nt be adequate t crdinate with the Area EPS reclsing practices. This may result in damage t the generatr upn reclsing f the EPS surce. In sme instances, n a case-bycase basis, the EPS peratr may allw the reclsing time t be increased r add synchrnism check supervisin t prvide crdinatin. Increasing the reclsing time in sme cases will have an unreasnable impact n ther custmers. Other means, such as transfer trip, must then be used t insure islatin f the generatr befre autmatic circuit reclse. Optins fr Satisfying 5.1 Design and 5.2 Prductin Test Requirements. (Applicatin Nte 13) Design and Prductin tests requirements may be satisfied with certified equipment, althugh certified equipment is nt required, cnsistent with the fllwing criteria: The small generating facility equipment prpsed fr use separately r packaged with ther equipment in an intercnnectin system shall be cnsidered certified fr intercnnected peratin if (1) it has been tested in accrdance with IEEE and the apprpriate cdes and standards referenced belw by any Natinally Recgnized Testing Labratry (NRTL) recgnized by the United States Occupatinal Safety and Health Administratin t test and certify intercnnectin equipment pursuant t the relevant cdes and standards listed belw, (2) it has been labeled and is publicly listed by such NRTL at the time f the intercnnectin applicatin, and (3) such NRTL makes readily available fr verificatin all test standards and prcedures it utilized in perfrming such equipment certificatin and with cnsumer apprval, the test data itself. The NRTL may make such infrmatin available n its Web site and by encuraging such infrmatin t be included in the manufacturer s literature accmpanying the equipment. 113

114 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards The Intercnnectin Custmer must verify that the intended use f the equipment falls within the use r uses fr which the equipment was tested, labeled, and listed by the NRTL. Certified equipment shall nt require further type-test review, testing, r additinal equipment t meet the requirements f this intercnnectin prcedure; hwever, nthing herein shall preclude the need fr an n-site cmmissining test by the parties t the intercnnectin nr fllw-up prductin testing by the NRTL r peridic tests per IEEE 1547 Sectin 5.5. If the certified equipment package includes nly interface cmpnents (switchgear, inverters, r ther interface devices), then an intercnnectin custmer must shw that the generatr r ther electric surce being utilized with the equipment package is cmpatible with the equipment package and is cnsistent with the testing and listing specified fr this type f intercnnectin equipment. Prvided the generatr r electric surce, when cmbined with the equipment package, is within the range f capabilities fr which it was tested by the NRTL, and des nt vilate the interface cmpnents' labeling and listing perfrmed by the NRTL, n further design review, testing r additinal equipment n the custmer side f the pint f cmmn cupling shall be required t meet the requirements f this intercnnectin prcedure. An equipment package des nt include equipment prvided by the utility. Any equipment package apprved and listed in a state by that state s regulatry bdy fr intercnnected peratin in that state prir t the effective date f these small generatr intercnnectin technical requirements shall be cnsidered certified under these prcedures fr use in that state Vltage. (Applicatin Nte 7) In cases where the DG interface is via an ungrunded transfrmer cnnectin at the PCC, the vltage sensing must be dne n the T.O. side f the transfrmer. This vltage sensing must be Phase - Grund cnnected fr all three phases. Vltage Unbalance Prtectin. In accrdance with ANSI C84.1, Annex D, Sectin D.2 Recmmendatin, vltage unbalance at the pint f cmmn cupling caused by the DG equipment, under n lad cnditins shall nt exceed 3% (calculated by dividing the maximum deviatin frm average vltage by the average vltage, with the result multiplied by 100) Recnnectin t Area EPS. (Applicatin Nte 8) Fr larger generating units, an Area EPS may require verbal cmmunicatin with the System Operatr befre returning generatin t the system Limitatin f Flicker induced by DR. (Applicatin Nte 9) Requirement guidance is prvided by IEEE Standard 519 and IEEE Flicker Task Frce P1453. Hwever, the requirement that must be met fr is t nt cause vltage and /r frequency disturbances that are bjectinable t ther EPS custmers during actual peratin f DR Harmnics. (Applicatin Nte 10) 114

115 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards In additin t the IEEE 1547 Harmnics requirement (i.e., each DG installatin must, at its PCC, meet the injected harmnic current distrtin limits prvided in IEEE 1547 Table 3 [excerpt IEEE 519 Table 10.3]) when multiple DG units are perating at different PCCs, each alne may meet the preceding current injectin limit; hwever, the aggregate impact f all the DG units culd still cause vltage distrtin that wuld adversely impact ther nn-dg custmers. Therefre, the aggregate vltage distrtin at EACH PCC must als nt exceed IEEE 519 limits. If the limits described in IEEE 519 are exceeded, the ffending DG (in mst cases the last t cnnect) is respnsible fr any apprpriate crrective actins taken by the intercnnecting transmissin wner t mitigate the prblem. Studies will be perfrmed t determine if excessive harmnic distrtin will ccur prir t installatin f the DG. Hwever, it may nt be pssible t predict the net level f vltage distrtin befre each new DG installatin n a given circuit. Vltage distrtin in excess f IEEE 519 can be used as a benchmark t trigger crrective actin (including discnnectin f DG units) if service interference exists. Nte: Additinal PPL Applicatin Nte: PPL has a requirement fr any ne Custmer (lad, generatin, etc.) t limit the vltage THD (Ttal Harmnic Distrtin) t 2.5% r less fr distributin vltages and 1.5% at 69 kv. PPL allws a smaller fixed limit fr each custmer, thereby sharing allwable harmnic cntributin rather than applying a first-cme first-served principle t successive intercnnectin requests Unintentinal Islanding. (Applicatin Nte 11) The Unintentinal Islanding requirement can be met by the fllwing: Transfer trip. Sensitive Frequency and Vltage relay settings, with a shrt tripping time delay, where the maximum DR aggregate generatin net utput t the EPS is cnsiderably less than the expected minimum islanded EPS lad. Typically, the islanded lad must be greater than tw t three times the maximum net islanded DR utput.* DR certified t pass an anti-islanding test. Reverse r minimum pwer flw relay limited. Other anti-islanding means such as frced frequency r vltage shifting. * Exceptins t B abve: PSEG Optin B nly applicable t aggregate DR intercnnectins f 1MW and belw. PEPCO Optin B generally nt applicable fr DR intercnnectins that exprt energy t the PEPCO system regardless f generatin and lad mismatch. Relevant Cdes and Standards IEEE 1547 Standard fr Intercnnecting Distributed Resurces with Electric Pwer Systems (including use f IEEE testing prtcls t establish cnfrmity) UL 1741 Inverters, Cnverters, and Cntrllers fr Use in Independent Pwer Systems IEEE Std IEEE Recmmended Practice fr Utility Interface f Phtvltaic (PV) Systems 115

116 Attachment E-1: Small Generatr (greater than 10 MW up t 20 MW) Technical Requirements and Standards NFPA 70 Natinal Electrical Cde IEEE Std C (R1944) IEEE Standard Surge Withstand Capability (SWC) Tests fr Prtective Relays and Relay Systems IEEE Std C (1995) IEEE Standard Withstand Capability f Relay Systems t Radiated Electrmagnetic Interference frm Transceivers IEEE Std C (R2002) IEEE Guide fr the Prtectin f Netwrk Transfrmers IEEE Std C , IEEE Standard Requirements fr Secndary Netwrk Prtectrs IEEE Std C , IEEE Recmmended Practice n Characterizatin f Surges in Lw-Vltage (1000V and Less) AC Pwer Circuits IEEE Std C (R2002) IEEE Recmmended Practice n Surge Testing fr Equipment Cnnected t Lw-Vltage (1000V) and Less) Pwer Circuits ANSI C Electric Pwer Systems and Equipment -Vltage Ratings (60 Hertz) IEEE Std , IEEE Standard Dictinary f Electrical and Electrnic NEMA MG , Mtrs and Small Resurces, Revisin 3 IEEE Std , IEEE Recmmended Practices and Requirements fr Harmnic Cntrl in Electrical Pwer Systems NEMA MG (Rev 2004), Mtrs and Generatrs, Revisin 1 116

117 Attachment F: Generatin Intercnnectin Feasibility Study Data Attachment F: Generatin Intercnnectin Feasibility Study Data F.1 Scpe This Generatin Intercnnectin Feasibility Study data attachment t Manual 14A is intended t prvide a listing f the data which is required s that an Intercnnectin Custmer may cmplete the data frm lcated n the PJM website (link given belw). Cmpletin f the frm n the web site, and submissin f the additinal data as listed at the link prvided belw, is necessary fr an Intercnnectin Request t be deemed a valid request. Link lcatin fr data submittal: F.2 Data Requirements fr PJM RTEPP Feasibility Studies Feasibility Studies are cnducted t identify transmissin expansin needed t maintain the system reliability given yur generatin nt the netwrk. The data submitted is required t perfrm the pwer flw, and shrt circuit analysis which are necessary fr the Feasibility Study Phase. PJM uses the fllwing prgrams t perfrm the Feasibility Analysis: 1. PSS/E prgram frm PTI, Inc. (pwer flw) 2. Aspen frm Advanced Systems fr Pwer Engineering, Inc.(shrt circuit) All data must be prvided n an individual unit basis. Fr example, a cmbined cycle plant with tw identical Cmbustin Turbines (CTs), and ne Steam Turbine (ST), wuld have 2 submissins f the data request frm. One submissin fr the CTs, and ne submissin fr the ST. If the final unit specificatins are nt certain an apprximatin must be made. When mre infrmatin is available, the Intercnnectin Custmer must prvide an update t PJM s that the typical mdel may be replaced with a detailed mdel based n the actual unit purchased. The data listed in Attachment F-1 is required fr a Generatin Intercnnectin Feasibility Study. 117

118 Attachment F-1: Feasibility Study Data Frm Attachment F-1: Feasibility Study Data Frm Nte: This frm is nt t be used fr submitting a Feasibility Study Frm. Data must be submitted thrugh the PJM website: expansin-plan-prcess.aspx * Dentes Required Field Custmer Infrmatin Intercnnectin custmer address 118

119 Attachment F-1: Feasibility Study Data Frm Unit Infrmatin Nte: PJM will accept 10 acres per MW fr flat land, 3 acres per MW fr placement n a ridge. Oceanbased much have a filed applicatin with the Federal gvernment. Size in megawatts f generating unit r increase in capacity f existing generating unit 119

120 Attachment F-1: Feasibility Study Data Frm Specify any prtin f the facility s capacity that yu wish t be a Capacity Resurce r Energy Resurce Nte: Wind will be assigned class average - currently 13% f MFO withut evidence. If requesting higher than 13%, evidence shuld be engineering evaluatin shwing greater capability due t wind available at lcatin. Slar prject will be assigned class average - currently 38% f MFO withut evidence. If requesting higher than 38%, evidence shuld be engineering evaluatin shwing greater capability due t tracking r lcatin and include clud cver fr summer perid (June 1 - Aug 31 2:00 p.m. - 6:00 p.m. 120

121 Attachment F-1: Feasibility Study Data Frm General Inf If Line tap/new substatin is selected specify line ends: Please select ne: 121

122 Attachment F-1: Feasibility Study Data Frm Unit Output High vltage side f the GSU Main Transfrmer Frm Ttal Transfrmer Ratings (MVA) e.g. OA/FA1/FA2 122

123 Attachment F-1: Feasibility Study Data Frm Impedances (All Values in PU n Transfrmer MVA base) Synchrnus Generatr The next sectin belw pertains t synchrnus generatr data (e.g. Bimass, Cal, Diesel, Hydr, Methane, Natural Gas, Nuclear, Oil, etc). If yu are nt prviding data fr a synchrnus generatr, please prceed t Page

124 Attachment F-1: Feasibility Study Data Frm 124

125 Attachment F-1: Feasibility Study Data Frm 125

126 Attachment F-1: Feasibility Study Data Frm Wind Farm The next sectin belw pertains t wind generatr data (e.g. ffshre wind and wind). If yu are nt prviding data fr a wind generatr, please prceed t Page 101. PJM has n file the manufacturer data sheets fr the fllwing Wind Turbines: Accina AW MW, 3.0 MW; Clipper C MW; Gamesa G8x/G90 2 MW; GE 1.5 MW, 1.6 MW, 2.5 MW, 2.75 MW, 4.0 MW; Generic Wind Mdel (WT3 and WT4) Mitsubishi MWT92/ MW, Nrdex N MW, N MW, N MW; Repwer MM MW; Siemens 2.3 MW, 3.0 MW, 3.6 MW, 4.0 MW, 6.0 MW; Suzln S88 2.1MW, S MW; Vestas V MW, V MW, 3.0 MW, V MW, V MW. If the Intercnnectin Custmer intends t install any f the turbines listed abve, then that Intercnnectin Custmer must nly supply the infrmatin listed belw which is applicable t a wind plant data request and which is accmpanied by an asterisk. If an Intercnnectin Custmer intends t install a turbine ther than ne (r mre) f the mdels listed abve, then all data which fllws as being required by a wind plant will be required. 126

127 Attachment F-1: Feasibility Study Data Frm 127

128 Attachment F-1: Feasibility Study Data Frm Inverter Based Generatr The next sectin belw pertains t inverter based generatr data (e.g. slar and strage). If yu are nt prviding data fr an inverter based generatr, please prceed t Page 103. Unit generatr dynamic data 128

129 Attachment F-1: Feasibility Study Data Frm All reactances and resistance values in PU n Machine MVA Base 129

130 Attachment F-1: Feasibility Study Data Frm Generatr Step-up Transfrmer (GSU) The next sectin belw pertains t wind r inverter based generatr data. If yu are nt prviding data fr a wind r inverter based generatr data, please prceed t Page

131 Attachment F-1: Feasibility Study Data Frm Attachment Line Data Please cmplete all required infrmatin belw. 131

132 Attachment F-1: Feasibility Study Data Frm 132

133 Attachment G: System Impact Study Data Attachment G: System Impact Study Data G.1 Scpe This System Impact Study data attachment t Manual 14A is intended t prvide a listing f the data which is required s that an Intercnnectin Custmer may cmplete the data frm lcated n the PJM website (link given belw). Cmpletin f the frm n the web site, and submissin f the additinal data as listed at the link prvided belw, is necessary fr an Intercnnectin Request t be deemed a valid request. Link lcatin fr data submittal: Data Requirements fr PJM RTEPP System Impact Studies The data listed in Attachment G-2 must be submitted t ensure prper mdeling f Intercnnectin Requests in the System Impact Study phase. System Impact Studies are cnducted t identify transmissin expansin needed t maintain the system reliability given the additin f yur generatin n t the netwrk. The data that is submitted is required t perfrm the pwer flw, shrt circuit and dynamic simulatin analyses which are necessary fr the Impact Study phase. PJM uses the fllwing prgrams t perfrm the System Impact Study Analysis: 1. PSS/E frm PTI, Inc. (pwer flw and dynamic simulatin) 2. Aspen frm Advanced Systems fr Pwer Engineering, Inc.(shrt circuit) Minimum requirement fields are indicated by * All data must be prvided n an individual unit basis. Fr example, a cmbined cycle plant with tw identical Cmbustin Turbines (CT), and ne Steam Turbine (ST), wuld have 1 submissin f the data request frm with data fr 2 turbines since the tw identical CTs can be entered as ne turbine. Fr a cmbined cycle plant with tw identical Cmbustin Turbines (CTs) and ne Steam Turbine (ST), the tw distinct sets f turbine data; ne fr the tw CTs and ne fr the ST, can be submitted tgether using the data request frm. If the final unit specificatins are nt certain an apprximatin must be made. When mre infrmatin is available, the Intercnnectin Custmer must prvide an update t PJM s that the typical mdel may be replaced with a detailed mdel based n the actual unit purchased. 133

134 Attachment G-1: Dynamic Mdel Study Request Frm Attachment G-1: Dynamic Mdel Study Request Frm RECITALS 1. This Agreement, dated as f,, is entered int by and between ("Custmer") and PJM Intercnnectin, L.L.C. ("Transmissin Prvider ). Capitalized terms used in this agreement, unless therwise indicated, shall have the meanings ascribed t them in the PJM Tariff ( Tariff ). 2. The Custmer has ntified the Transmissin Prvider that it plans t prvide a new dynamic mdel r new versin f an existing mdel fr study f a Generatin Intercnnectin Request(s). 3. The Custmer shall prvide sufficient infrmatin regarding the mdel and any facility infrmatin t enable Transmissin Prvider t evaluate the mdel fr use in future System Impact Study. PURPOSE OF THE STUDIES UNDER THIS AGREEMENT 4. Transmissin Prvider shall cnduct studies t determine whether the mdel and infrmatin prvided will be acceptable fr the study f a Generatin Intercnnectin Request. Upn cmpletin f the studies, Transmissin Prvider shall prvide the Custmer with determinatin f the acceptability fr use f the mdel fr a Generatin Intercnnectin Request. In the event that the Transmissin Prvider is unable t cmplete the studies within 90 days f the executin f this Agreement, and receipt f the relevant materials which includes any relevant specificatins and mdeling data, the Transmissin Prvider shall ntify the Custmer and explain the reasns fr the delay. CONFIDENTIALITY 5. The Transmissin Prvider shall keep cnfidential all infrmatin prvided t it by the Custmer used in the perfrmance f the study f the new mdel. 6. Custmer acknwledges that, cnsistent with Part VI f the Tariff, the Transmissin Prvider may cntract with cnsultants, including the Transmissin Owners, t prvide services r expertise in the study prcess and that the Transmissin Prvider may disseminate infrmatin t the Transmissin Owners. COST RESPONSIBILITY 7. The Custmer shall reimburse the Transmissin Prvider fr the actual cst f the studies. Custmer shall supply an initial depsit f $10,000, with the executin f this agreement, in rder t fund initial studies. All depsit mnies shall be fully refundable fllwing payment f all charges incurred in the study f this mdel. DISCLAIMER OF WARRANTY, LIMITATION OF LIABILITY 8. In analyzing and preparing the studies, the Transmissin Prvider, the Transmissin Owner(s), and any ther subcntractrs emplyed by the Transmissin Prvider shall have t 134

135 Attachment G-1: Dynamic Mdel Study Request Frm rely n infrmatin prvided by the Custmer and pssibly by third parties and may nt have cntrl ver the accuracy f such infrmatin. Accrdingly, NEITHER THE TRANSMISSION PROVIDER, THE TRANSMISSION OWNER(S), NOR ANY OTHER SUBCONTRACTORS EMPLOYED BY THE TRANSMISSION PROVIDER MAKES ANY WARRANTIES, EXPRESS OR IMPLIED, WHETHER ARISING BY OPERATION OF LAW, COURSE OF PERFORMANCE OR DEALING, CUSTOM, USAGE IN THE TRADE OR PROFESSION, OR OTHERWISE, INCLUDING WITHOUT LIMITATION IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE WITH REGARD TO THE ACCURACY, CONTENT, OR CONCLUSIONS OF THE NECESSARY STUDIES. The Custmer acknwledges that it has nt relied n any representatins r warranties nt specifically set frth herein and that n such representatins r warranties have frmed the basis f its bargain hereunder. Neither this Agreement nr the studies perfrmed hereunder are intended, nr shall either be interpreted, t cnstitute agreement by the Transmissin Prvider r the Transmissin Owner(s) t prvide any transmissin r intercnnectin service t r n behalf f the Custmer either at this pint in time r in the future. 9. In n event will the Transmissin Prvider, Transmissin Owner(s) r ther subcntractrs emplyed by the Transmissin Prvider be liable fr indirect, special, incidental, punitive, r cnsequential damages f any kind including lss f prfits, whether under this Agreement r therwise, even if the Transmissin Prvider, Transmissin Owner(s), r ther subcntractrs emplyed by the Transmissin Prvider have been advised f the pssibility f such a lss. Nr shall the Transmissin Prvider, Transmissin Owner(s), r ther subcntractrs emplyed by the Transmissin Prvider be liable fr any delay in delivery r f the nn-perfrmance r delay in perfrmance f the Transmissin Prvider's bligatins under this Agreement. Withut limitatin f the freging, the Custmer further agrees that Transmissin Owner(s) and ther subcntractrs emplyed by the Transmissin Prvider t prepare r assist in the preparatin f any Necessary Studies shall be deemed third party beneficiaries f this prvisin entitled "Disclaimer f Warranty/Limitatin f Liability." MISCELLANEOUS 10. Any ntice r request made t r by either party regarding Agreement shall be made t the representative f the ther party as indicated belw. Transmissin Prvider PJM Intercnnectin, L.L.C Mnre Bulevard Audubn, PA Custmer 135

136 Attachment G-1: Dynamic Mdel Study Request Frm Attn: Phne: N waiver by either party f ne r mre defaults by the ther in perfrmance f any f the prvisins f this Agreement shall perate r be cnstrued as a waiver f any ther r further default r defaults, whether f a like r different character. 12. This Agreement r any part theref, may nt be amended, mdified, r waived ther than by a writing signed by all parties heret. 13. This Agreement shall be binding upn the parties heret, their heirs, executrs, administratrs, successrs, and assigns. IN WITNESS WHEREOF, the Transmissin Prvider and the Custmer have caused this Agreement t be executed by their respective authrized fficials. Transmissin Prvider: By: Name: Title Date Title Date Printed Name f Signer: Custmer: By: Name: Printed Name f Signer: ATTACHMENT #1 Generatr Data Add data t be used (Supply data under the frm f the Impact Study Data Frm thrugh the PJM website as well as cnfiguratin infrmatin fr the facility). 136

137 Attachment G-2: System Impact Study Data Frm Attachment G-2: System Impact Study Data Frm Nte: This frm is nt t be used fr submitting System Impact Study Datasheet. Data must be submitted thrugh the PJM website: expansin-plan-prcess.aspx * Dentes Required Field General Infrmatin 137

138 Attachment G-2: System Impact Study Data Frm Prject Capability 138

139 Attachment G-2: System Impact Study Data Frm 139

140 Attachment G-2: System Impact Study Data Frm Synchrnus Generatr The next sectin belw pertains t synchrnus generatr data (e.g. Bimass, Cal, Diesel, Hydr, Methane, Natural Gas, Nuclear, Oil, etc). If yu are nt prviding data fr a synchrnus generatr, please prceed t Page

141 Attachment G-2: System Impact Study Data Frm Generatr Parameters All reactances and resistance values in PU n Machine MVA Base 141

142 Attachment G-2: System Impact Study Data Frm Generatr Step-up Transfrmer (GSU) Frm The next sectin belw pertains t the GSU fr the synchrnus generatr. Please cmplete all required infrmatin belw. 142

143 Attachment G-2: System Impact Study Data Frm 143

144 Attachment G-2: System Impact Study Data Frm PSS/E simulatin infrmatin The equipment mdels listed belw are thse available fr use in PSS/E. Each mdel can have unique data requirements. The minimum mdeling required fr dynamic simulatin is a generatr mdel, and an exciter mdel. These must be identified / submitted by the Intercnnectin Custmer. The manufacturer f the equipment t be incrprated in the design f a facility shuld be able t prvide the prper mdel r an equivalent fr the Intercnnectin Custmer t identify. If yu cannt determine the exact PSS/E mdel, yu must submit a Cntrl/Blck Diagram fr the piece f equipment in questin. Generatr Mdels GENROE Rund rtr generatr mdel. GENROU Rund rtr generatr mdel. GENSAE Salient ple generatr mdel. GENSAL Salient ple generatr mdel. GENDCO Rund rtr generatr mdel with DC ffset trque cmpnent. GENCLS Classical generatr mdel. GENTRA Transient level generatr mdel. CIMTRl Inductin generatr mdel with rtr flux transients. CIMTR3 Inductin generatr mdel with rtr flux transients. Static Var Cmpensatr (SVC) and Frequency Changer Mdels CSVGNl SCR cntrlled static VAR surce mdel. CSVGN3 SCR cntrlled static VAR surce mdel. CSVGN4 SCR cntrlled static VAR surce mdel. CSVGN5 WSCC cntrlled static VAR surce mdel. CSVGN6 WSCC cntrlled static VAR surce mdel. FRECHG Salient ple frequency changer mdel. If the mdel fr the SVC t be emplyed by the Intercnnectin Custmer is nt present n the list abve, then the Intercnnectin Custmer must prvide the mdel t PJM, therwise the Intercnnectin Custmer must identify t PJM the crrect mdel t be used frm the list abve. 144

145 Attachment G-2: System Impact Study Data Frm Excitatin System Mdels An exciter mdel is a minimum mdeling requirement fr dynamic simulatin. Additinally, the exciter mdel in certain cases is needed t ensure that the unit is transiently stable. PJM maintains the fllwing mdel infrmatin: EXDC IEEE type DC2 excitatin system mdel. EXAC IEEE type AC1 excitatin system mdel. EXAClA Mdified type AC1 excitatin system mdel. EXAC IEEE type AC2 excitatin system mdel. EXAC IEEE type AC3 excitatin system mdel. EXAC IEEE type AC4 excitatin system mdel. EXST IEEE type ST1 excitatin system mdel. EXST IEEE type ST2 excitatin system mdel. EXST2A Mdified 1981 IEEE type ST2 excitatin system mdel. EXST IEEE type ST3 excitatin system mdel. ESAC1A 1992 IEEE type AC1A excitatin system mdel. ESAC2A 1992 IEEE type AC2A excitatin system mdel. ESAC3A 1992 IEEE type AC3A excitatin system mdel. ESAC4A 1992 IEEE type AC4A excitatin system mdel. ESAC5A 1992 IEEE type AC5A excitatin system mdel. ESAC6A 1992 IEEE type AC6A excitatin system mdel. ESDClA 1992 IEEE type DClA excitatin system mdel. ESDC2A 1992 IEEE type DC2A excitatin system mdel. ESST1A 1992 IEEE type ST1A excitatin system mdel. ESST2A 1992 IEEE type ST2A excitatin system mdel. ESST3A 1992 IEEE type ST3A excitatin system mdel. EXPIC1 Prprtinal/integral excitatin system mdel. IEEETl 1968 IEEE type 1 excitatin system mdel. IEET1A Mdified 1968 IEEE type 1 excitatin system mdel. IEET1B Mdified 1968 IEEE type I excitatin system mdel. IEEET IEEE type 2 excitatin system mdel. IEEET IEEE type 3 excitatin system mdel. IEEET IEEE type 4 excitatin system mdel. IEEET5 Mdified 1968 IEEE type 4 excitatin system mdel. 145

146 Attachment G-2: System Impact Study Data Frm IEET5A Mdified 1968 IEEE type 4 excitatin system mdel. IEEEXl 1979 IEEE type 1 excitatin system mdel and 1981 IEEE type DC1 mdel. IEEEX IEEE type 2 excitatin system mdel. IEEEX IEEE type 3 excitatin system mdel. IEEEX IEEE type 4 excitatin system mdel, 1981 IEEE type DC3 mdel and 1992 IEEE type DC3A mdel. IEEX2A 1979 IEEE type 2A excitatin system mdel. SCRX Bus r slid fed SCR bridge excitatin system mdel. SEXS Simplified excitatin system mdel. If the mdel fr the excitatin system t be emplyed by the Intercnnectin Custmer is nt present n the list abve, then the Intercnnectin Custmer must prvide the mdel t PJM, therwise the Intercnnectin Custmer must identify t PJM the crrect mdel t be used frm the list abve. Prime Mver and Gvernr Mdels The prime mver gvernr mdel is required t demnstrate lng-term stability f the unit in respnse t frequency scillatins. PJM maintains the fllwing mdel infrmatin: CRCMGV Crss cmpund turbine gvernr mdel. DEGOV Wdward diesel gvernr mdel. DEGOV1 Wdward diesel gvernr mdel. GAST Gas turbine gvernr mdel. GAST2A Gas turbine gvernr mdel. GASTWD Wdward gas turbine gvernr mdel. HYGOV Hydr turbine gvernr mdel. IEESGO 1973 IEEE standard turbine gvernr mdel. IEEEG IEEE type 1 turbine gvernr mdel. IEEEG IEEE type 2 turbine gvernr mdel. IEEEG IEEE type 3 turbine gvernr mdel. SHAF25 25 mass trsinal-elastic shaft mdel. TGOV1 Steam turbine gvernr mdel. TGOV2 Steam turbine gvernr mdel with fast valving. TGOV3 Mdified IEEE type 1 turbine gvernr mdel with fast valving. TGOV5 Mdified IEEE type 1 turbine gvernr mdel with biler cntrls. WEHGOV Wdward Electric Hydr Gvernr Mdel. WESGOV Westinghuse Digital Gvernr fr Gas Turbine. 146

147 Attachment G-2: System Impact Study Data Frm WPIDHY Wdward P.I.D. hydr gvernr mdel. If the mdel fr the gvernr system t be emplyed by the Intercnnectin Custmer is nt present n the list abve, then the Intercnnectin Custmer must prvide the mdel t PJM, therwise the Intercnnectin Custmer must identify t PJM the crrect mdel t be used frm the list abve. Pwer System Stabilizer Mdels Pwer System Stabilizer must be added t the exciter circuits t frce stability. Hwever, devices such as Pwer System Stabilizers, as well as Excitatin Limiters and Cmpensating devices, are less frequently applied, and are mdeled if the equipment will be used. PJM maintains the fllwing mdel infrmatin. IEEEST 1981 IEEE pwer system stabilizer mdel. IEE2ST Dual input signal pwer system stabilizer mdel. PTISTl PTI micrprcessr based stabilizer mdel. PTIST3 PTI micrprcessr based stabilizer mdel. PSS2A 1992 IEEE duel input signal stabilizer mdel. STAB1 Speed sensitive stabilizer mdel. STAB2A ASEA pwer sensitive stabilizer mdel. STAB3 Pwer sensitive stabilizer mdel. STAB4 Pwer sensitive stabilizer mdel. STBSVC WSCC supplementary signal fr static VAR system. ST2CUT Dual input signal pwer system stabilizer mdel. Minimum Excitatin Limiter Mdels PJM maintains the fllwing mdel infrmatin: MNLEXl Minimum excitatin limiter mdel. MNLEX2 Minimum excitatin limiter mdel. MNLEX3 Minimum excitatin limiter mdel. Maximum Excitatin Limiter Mdels PJM maintains the fllwing mdel infrmatin: MAXEX1 Maximum excitatin limiter mdel. MAXEX2 Maximum excitatin limiter mdel. Cmpensating Mdels PJM maintains the fllwing mdel infrmatin. COMP Vltage regulatr cmpensating mdel. 147

148 Attachment G-2: System Impact Study Data Frm COMPCC Crss cmpund cmpensating mdel. IEEEVC 1981 IEEE vltage cmpensating mdel. REMCMP Remte bus vltage signal mdel. Wind Farm The next sectin belw pertains t wind generatr data (e.g. ffshre wind and wind). If yu are nt prviding data fr a wind generatr, please prceed t Page 126. PJM has n file the manufacturer data sheets fr the fllwing Wind Turbines: Accina AW MW, 3.0 MW; Clipper C MW; Gamesa G8x/G90 2 MW; GE 1.5 MW, 1.6 MW, 2.5 MW, 2.75 MW, 4.0 MW; Generic Wind Mdel (WT3 and WT4) Mitsubishi MWT92/ MW, Nrdex N MW, N MW, N MW; Repwer MM MW; Siemens 2.3 MW, 3.0 MW, 3.6 MW, 4.0 MW, 6.0 MW; Suzln S88 2.1MW, S MW; Vestas V MW, V MW, 3.0 MW, V MW, V MW. If the Intercnnectin Custmer intends t install any f the turbines listed abve, then that Intercnnectin Custmer must nly supply the infrmatin listed belw which is applicable t a wind plant data request and which is accmpanied by an asterisk. If an Intercnnectin Custmer intends t install a turbine ther than ne (r mre) f the mdels listed abve, then all data which fllws as being required by a wind plant will be required. 148

149 Attachment G-2: System Impact Study Data Frm Wind Farm - Generatr Step-up Transfrmer (GSU) Please cmplete all required infrmatin belw. 149

150 Attachment G-2: System Impact Study Data Frm Wind Farm Main Transfrmer Frm Please cmplete all required infrmatin belw. 150

151 Attachment G-2: System Impact Study Data Frm Inverter Based Parameters The next sectin belw pertains t inverter based generatr data (e.g. slar and strage). If yu are nt prviding data fr an inverter based generatr, please prceed t Page

152 Attachment G-2: System Impact Study Data Frm Nte: All inverter based prjects greater than 30 MW must submit a dynamic mdel. Dynamic mdel may be requested fr prjects less than 30 MW depending n the area. T avid delays, whenever available, please submit a dynamic mdel. 152

153 Attachment G-2: System Impact Study Data Frm Inverter Based - Generatr Step-up Transfrmer (GSU) Frm Inverter Based Main Transfrmer Frm Please cmplete all required infrmatin belw. 153

154 Attachment G-2: System Impact Study Data Frm Attachment Line Data Please cmplete all required infrmatin belw. 154

155 Attachment G-2: System Impact Study Data Frm 155

156 Attachment H: Generatr Reactive Deficiency Mitigatin Prcess Attachment H: Generatr Reactive Deficiency Mitigatin Prcess H.1 Scpe The mitigatin prcess is t address a reactive deficiency f an existing synchrnus generatr caused by an increase f its utput (capacity r energy) resulting in that the generatr reactive capability cannt meet the existing PJM pwer factr requirements as stated in the Tariff. The mitigatin prcess and the assciated business rules will als be applied t all new intercnnectin requests regarding an increase f capacity r energy t an existing generatr. The mitigatin prcess is nt intended fr: Wind r nn-synchrnus generatrs, Existing generatrs nt requesting an increase f capacity r energy, Previus requests fr capacity r energy increases The prcess is in cmpliance with the existing Tariff requirements and the assciated business rules and des nt require a change in the existing Tariff. Reactive Deficiency Definitin A Reactive Deficiency is defined as the difference between the Mvar capability f a generatr after the upgrade fr meeting the PJM pwer factr requirements and the actual Mvar capability f a generatr after the requested increase in capacity r energy. Fr existing generatrs that d nt have a signed FERC Prfrma Intercnnectin Service Agreement (ISA), the Mvar capability befre the upgrade is the grandfathered Mvar capability determined by PJM. Fr generatrs that have a signed ISA, the Mvar capability befre the upgrade is determined by the Mvar fr meeting the pwer factr requirements as stated at Part VI, Att. O, App. 2, Sectin f the Tariff. Fr the incremental MW increase, the crrespnding pwer factr requirements can be calculated accrding t the requirements stated at Part VI, Att. O, App. 2, Sectin f the Tariff. Hence, the Mvar capability f a generatr after the upgrade fr meeting the PJM pwer factr requirements is defined as the sum f the grandfathered Mvar capability r the Mvar requirements stated in the Tariff and the Mvar requirement crrespnding t the incremental MW increase. After the upgrade, the actual Mvar capability f the generatr is the Mvar, defined by the generatr s reactive capability curve, crrespnding t the Maximum Facility Output f the generatr befre the upgrade plus the incremental MW increase. The reactive deficiency, if any, is determined during the Feasibility and the System Impact Study phases f an intercnnectin request regarding an increase f capacity r energy t an existing generatr. The Intercnnectin Custmer will be ntified f the deficiency and the prpsed mitigatin befre the executin f the Cnstructin r Intercnnectin Service Agreement. Mitigatin Prcess Currently, the Tariff allws the Intercnnectin Custmer, at its expense, t install pwer factr crrectin r ther equipment at the generatin plant t mitigate the reactive deficiency and t 156

157 Attachment H: Generatr Reactive Deficiency Mitigatin Prcess enable the generatr t meet the PJM reactive pwer design criteria during peratin. (Tariff at Part VI, Att. O, App. 2, Sectin 4.7.3) If the Intercnnectin Custmer fails t mitigate the reactive deficiency, PJM can request the affected Transmissin Owner t install Static Var Cmpensatr (SVC) r similar dynamic reactive devices, at the Intercnnectin Custmer s expense in the frm f a Reactive Deficiency Charge, t mitigate the identified reactive deficiency. A shunt capacitr applicatin culd be cnsidered but its applicatin will require PJM review n a case by case basis. Fr a generatr reactive deficiency less than 50 Mvar, the Reactive Deficiency Charge will be equal t the reactive deficiency (in Mvar) multiplied by the mst recent average cst estimates (in $/Mvar) fr installing SVCs n the PJM system. There will be tw SVC cst estimates t be develped and updated annually by PJM ne fr installatins at r abve 230kV and ne fr installatins belw 230kV. The applicable deficiency charge is based n the vltage at the high side f the generatr step up transfrmer. In the event that a shunt capacitr applicatin is allwed, the charge will be based n the mst recent cst f similar shunt capacitr installatin. Fr a generatr reactive deficiency greater than r equal t 50 Mvar, the affected Transmissin Owner will be respnsible t prvide either the cst estimate (in $/Mvar) fr installing a SVC in its system which will be used t calculate the Reactive Deficiency Charge r the cst estimate (in $) f a specific SVC r SVCs necessary t mitigate the reactive deficiency as determined by PJM and the affected Transmissin Owner in the System Impact Study. Reactive Deficiency Charge Payments The Reactive Deficiency Charges can be paid in cash r via a letter f credit. The cllected charges will be used t fund reactive prjects in the Transmissin Owner s zne in which the Intercnnectin Custmer s generatr is lcated. The affected Transmissin Owners shall be respnsible t cnstruct, wn and maintain these reactive prjects. If the Reactive Deficiency Charge fr an individual Intercnnectin Request is less than $2M and is insufficient t fund a planned reactive prject, PJM can chse t use the cllected charge t prvide partial funding t this prject. Alternatively, PJM can hld the cllected charges in an accunt until sufficient funds have been cllected t fund the entire prject. If the Reactive Deficiency Charge fr an individual Intercnnectin Request is mre than the cst f a planned reactive prject, PJM can chse t use the cllected charge t fund this prject and hld the remaining fund in cash (nt t exceed $2M) r in a letter f credit as a security fr use t fund future reactive prjects. These funds will be used as sn as a reactive upgrade has been identified. Alternatively, PJM can develp a different reactive prject t be funded entirely by the cllected charge. If the Reactive Deficiency Charge is mre than $2M and a reactive prject has nt been develped, PJM will require the Intercnnectin Custmer t prvide a letter f credit fr use t fund a reactive upgrade as sn as it has been identified. Review f and Mdificatin t the Mitigatin Prcess NERC standards require that PJM, as the Transmissin Operatr, shall acquire sufficient reactive resurces within its area t prtect the vltage levels under nrmal and cntingency cnditins. PJM will cntinue t assess the reactive capability f the system and serve as the backstp t recmmend mdificatins t the mitigatin prcess and the assciated business 157

158 Attachment H: Generatr Reactive Deficiency Mitigatin Prcess rules when and if there are insufficient reactive resurces n the system t maintain system reliability. 158

159 Annex 1: SCADA Requirements by Transmissin Owner Regin Annex 1: SCADA Requirements by Transmissin Owner Regin 159