An Exelon Company December 15, Supplier Operating Manual

Transcription

1 I Pepco Holdngs, An Exelon Company Suppler Operatng Manual Procedures for Determnng Peak Load Contrbuton For Capacty and Transmsson Servce And Hourly Energy Oblgatons

2 TABLE OF CONTENTS I INTRODUCTION... 4 II SUPPLIER CAPACITY PEAK LOAD CONTRIBUTION Introducton Annual Customer Capacty Peak Load Contrbuton Determnng Prelmnary Customer Peak Loads Reconclng Prelmnary Peak Loads to the Company Zonal Peak and to the Company Zonal Capacty Peak Allocaton New Customers (New Servce Pont) or Servce Pont wthout Peak Perod Usage (Servce Pont Inactve) New Customers (Exstng Servce Pont) Supplers Capacty Peak Load Contrbuton Informaton Coordnaton Responsbltes Suppler PHI...14 III SUPPLIER NETWORK SERVICE PEAK LOAD CONTRIBUTION Introducton Annual Customer Network Servce Peak Load Contrbuton Determnng Prelmnary Customer Network Servce Peak Loads Reconclng Prelmnary Peak Loads to the Company Zonal Peak and to the Company Zonal Capacty Peak Allocaton New Customers (New Servce Pont) or Servce Pont wthout Peak Perod Usage (Servce Pont Inactve) New Customers (Exstng Servce Pont) Supplers Network Servce Peak Load Contrbuton Informaton Coordnaton Responsbltes Suppler PHI...23 IV SUPPLIER HOURLY ENERGY OBLIGATION Introducton Day-ahead Energy Market Real Tme Balancng Market Day-after Estmates Market Adjustments Determnng Fnal Hourly Energy Oblgaton for Real-tme Market Scalng Hourly Energy Loads to the Company Fnal Zonal Energy Load Determnaton of the Fnal Adjustment to the Supplers Hourly Energy Oblgaton (HEO) [60-Day Reconclaton]...35 Appendx 1: Load Proflng Methodology...37 Appendx 2: Development of Concdence Factors...40 Appendx 3: Glossary...42 Account, Customer Settlement...43 Actve Load Management (ALM)...43 Capacty Resource...43 Control Area...43 Curtalment...43 Day-ahead Prces...43 Demand Loss Factor...43 ESutes eschedules, erpm and Market User Interface...43 Forecast Pool Requrement...44 Good Utlty Practce...44 Hourly Energy Oblgaton (HEO)...44 Interchange Energy Market, PJM...44 Page of 48

3 Interrupton...44 Interval Customer...44 Load Aggregator...44 Local Dstrbuton Company (LDC)...44 Load...44 Load Servng Entty (LSE)...45 Loss Factor...45 Locatonal Margnal Prce (LMP)...45 Network Customer...45 Network Integraton Transmsson Servce...45 Network Load...45 Network Transmsson Servce...45 Node...45 Load Factor...45 Offce of the Interconnecton (OI), PJM...46 Operatng Day...46 PJM...46 PJM Control Area...46 PJM Manuals...46 PJM Member...46 Plannng Perod...46 Profle Class...46 Proxy Day...46 Relablty Assurance Agreement...46 Retal Load Responsblty...46 Schedule...47 Servce Agreement...47 Servce Pont...47 Spot Market Energy...47 Suppler...47 Transmsson Servce...48 Type 1 Customer...48 Type 2 Customer...48 Unaccounted For Energy (UFE)...48 Unforced Capacty...48 Usage Factor...48 Zone...48 Page of 48

4 I INTRODUCTION Ths Manual descrbes the procedures that Pepco Holdngs (PHI), whch s represented by the ndvdual brands of Atlantc Cty Electrc, Delmarva Power and Pepco (collectvely, The Company ) wll use to derve certan load and energy accountng nformaton requred for PJM Interconnecton, L.L.C. (PJM) bllng processes.. Its purpose s to facltate understandng of data coordnaton requrements establshed by PJM to account for electrcty transactons n a compettve market envronment. The three key nformaton tems addressed nclude Suppler Capacty Peak Load Contrbuton (Suppler Capacty PLC), Suppler Network Servce Peak Load Contrbuton (Suppler Transmsson PLC), and Suppler Hourly Energy Oblgaton (Suppler HEO). The frst two tems, Suppler Capacty Peak Load Contrbuton and Suppler Network Servce Peak Load Contrbuton, are necessary for allocatng capacty and network servce oblgatons for enttes servng load wthn the PJM Control Area. The last tem, Suppler Hourly Energy Oblgaton, s the bass for transacton accountng as part of the PJM Interchange Energy Market settlement system; specfcally, to conduct hourly energy-nterchange bllng and subsequent bllng reconclaton. The Company wll use Entegrty s Data Aggregaton Soluton and Oracle s Load Proflng and Settlement (LPS), to calculate the Capacty PLC, Transmsson PLC, and Suppler HEO, as well as all assocated data management functons. Data wll be submtted electroncally to PJM. Factors used for ther dervaton wll be made avalable to the Supplers va the specfc brand web ste ( Ths manual conssts of three major sectons, each outlnng the methods used for calculatng Suppler Capacty PLC, Suppler Network Servce PLC, and Suppler HEO, respectvely. These methods, as mplemented by the LPS, reflect the reportng responsbltes outlned n the followng documents: ACE/DPL/Pepco Thrd Party Suppler Agreements PJM Relablty Assurance Agreement Ths agreement s ntended to ensure the adequacy of electrc capacty resources to meet peak load and emergency response requrements n the PJM Control Area. PJM Open Access Transmsson Tarff (OATT) The OATT provdes rates, terms and condtons for transmsson servces provded through transmsson facltes n the PJM Control Area. PJM Manuals. The PJM manuals are a set of nstructons and gudelnes for the operaton, plannng, and accountng requrements of the PJM Control Area and the PJM Interchange Energy Market. Page 4 of 48

5 Each secton presents sample calculatons showng the step-by-step dervaton of the processes usng sample data. For the Suppler Capacty PLC and Suppler Transmsson PLC sectons, the sample calculatons are based on a zone for a Suppler wth three customers. For the Suppler HEO, the sample calculatons are based on an energy settlement for two Supplers that each serve three customers (Supplers A and B). Appendx 1 descrbes how the load profles are developed, as well as the specfc load proflng method used by the Company to support capacty and energy settlement processes. Appendx 2 documents the development of Customer Concdent Factors. Appendx 3 s a glossary of PJM and LPS terms. Note that the nformaton provded n ths Manual reflects the Company s understandng of PJM s prevalng procedures, and may be revsed occasonally to reflect changes to Company operatons, PJM commttee actons, and regulatory mandates. See any of the brand-specfc web stes ( for updates to ths Manual. Page 5 of 48

6 II SUPPLIER CAPACITY PEAK LOAD CONTRIBUTION 1 Introducton As requred by the PJM Relablty Assurance Agreement (RAA), the PJM Offce of the Interconnecton (PJM OI) calculates the PJM zonal capacty oblgaton. The zonal capacty oblgaton serves as the baselne level of nstalled capacty resources suffcent to meet the forecasted load and reserve margn, accountng for unt unavalablty due to outages (forced and mantenance) and load devatons. The PJM nstalled capacty oblgaton s assessed to supplers based on ther peak load contrbuton (Capacty Peak Load Contrbuton or Capacty PLC). The PJM IO assgns each Local Dstrbuton Company (LDC) a share of the overall PJM peak load contrbuton. Each LDC s responsble for calculatng and reportng the Capacty PLC for each suppler servng load n ther servce terrtory. The sum of the customer s Capacty PLC wll equal the LDC s share of the overall PJM Peak Load Contrbuton. In accordance wth the PJM RAA and PJM rules and procedures, the Company wll calculate a Peak Load Contrbuton tcket for each customer on an annual bass. The PLC value for a customer represents ther share of the LDC s peak load contrbuton. The customer s share s calculated based on the customer s average unrestrcted load concdent wth the fve hghest PJM unrestrcted peak loads. The fve PJM peak hours (occurrng on separate days) are provded by PJM. The customer PLC wll be updated n accordance wth PJM rules and procedures, wth supportng data posted on the Company s Web ste. The Company wll calculate and report to PJM the Suppler Capacty Peak Load Contrbuton (Suppler Capacty PLC), whch s the sum of all customers PLC for each suppler. Ths secton descrbes the methods and calculatons used to derve the customer and Suppler Capacty PLC. The sample calculatons are presented. 2 Annual Customer Capacty Peak Load Contrbuton The dervaton of customer Capacty Peak Load Contrbutons (Capacty PLC or CPLC) conssts of two procedures: Determnng the prelmnary customer peak loads. Reconclng customer peak loads to the Company s Zonal Weather Normalzed Concdent Summer Peak. 2.1 Determnng Prelmnary Customer Peak Loads For ths procedure, the company wll determne hourly peak loads for each customer accordng to the customers meterng type and profle class. Snce the sum of the customers estmated peak loads, can devate from the company s allocated peak load share wthn the PJM control area, they are referred to as prelmnary capacty peak loads. Page 6 of 48

7 The method used to determne a customer s prelmnary peak load depends on the type of meterng equpment nstalled at the customer s locaton that s used for bllng. Customer bllng data are classfed n one of three ways: nterval-metered customers who have hourly metered usage data, non-nterval metered customers who only have monthly energy readngs, and non-nterval metered customers who have maxmum demand readngs and monthly energy readngs. For the nterval-metered customers, actual demand readngs concdent wth the PJM peak hours are used to determne the customer s prelmnary peak load. For the non-nterval-metered customers wth monthly energy readngs only, profle estmates by customer classes are developed usng load research samples for whch hourly data are avalable. For the customers who have demand data, concdence factors are calculated for the correspondng hours of the PJM peaks. The determnaton of the customer peak load depends on the customer s assgned profle class. A profle class s a groupng of customers wth a smlar energy usage pattern. Note that an nterval-metered customer s not grouped wth other customers because of the avalablty of actual hourly data. Profle classes for non-nterval-metered customers are establshed accordng to the Company s tarff rate classes, bllng data, and avalable load research data. The dervaton of the prelmnary customer peak loads occurs n several steps. These steps are as follows: 1. For each customer, retreve fve hourly loads for the hours correspondng to the fve hghest peak demands for the PJM control area. (For nterval-metered customers, the loads are the customer s hourly-metered loads; for non-nterval metered customers wth no demand data, the loads are estmated usng the customer s actual consumpton and hourly profle class loads; and for non-nterval metered customers wth demand data, the loads are estmated usng the customer s maxmum demand for the summer bllng cycles and the concdent factors for the fve PJM peaks.) 2. After addng back any load reductons stemmng from Actve Load Management ntatves, apply the approprate loss factor 1 to each demand. Sum the customers concdent demands. Ths s the total un-reconcled load. 3. Reconcle the sum of the customers loads to the unrestrcted, metered zonal load for each of the fve PJM peak tmes. The dfference between each unrestrcted, metered zonal peak and the sum of the estmated customers demands concdent wth the zonal peak s called unaccounted for energy (UFE). UFE s assgned to all customers based on a load weghted share of the sum total of the hourly customer loads wth losses. 1 In all three PHI zones (ACE, DPL and PEPCO), a demand (or peak) loss factor s used that s specfc to the peak perod (see Demand Loss Factor n Glossary) Page 7 of 48

8 4. Calculate the average of the reconcled demands for each customer. 5. Calculate the reconclaton factor (RF). The RF s equal to the Zonal Weather Normalzed Concdent Summer Peak, provded by PJM, dvded by the sum the total averages of the customers reconcled demands. 6. Calculate the Fnal Capacty Peak Load Contrbuton for each customer by multplyng the customer s average of the reconcled demands by the reconclaton factor. The framework of calculaton steps s presented below. Hourly Metered Customers Calculaton of the Prelmnary Demands Data requrements 1. Hourly demands for each customer concdent wth the hghest fve PJM peak hours (KW ). 2. Loss factors (loss_factor). 3. Reducton values for any customer partcpatng n an Actve Load Management Program (ALM ). Processes 1. Obtan the fve hourly customer metered loads concdent wth the fve PJM peaks for each hourly-metered customer Add any hourly peak load reducton amounts (ALM) that correspond to the fve PJM peaks for each applcable hourly-metered customer. 3. Apply the approprate lossfactor. 3 CPLC Pr e lm n KW loss _ factor Where n = corresponds to the fve PJM peak hours and s the customer. Example Calculaton for an Hourly Metered Customer, loss factor = 1.02 Rank Day/hour KW Prel KW wth Losses - CPLC Prelm 1 6/09 17: /10 17: /17 17: /18 17: If a customer s mssng data for the hghest fve PJM peak hours, proxy data are substtuted for the customer. If proxy data are not avalable, the PLC wll be based on the PJM peak hours where data are avalable. 3 Loss factors are avalable on the Company webstes. Factors are assgned based on customers servce attrbutes (.e., servce voltage and/or rate class) Page 8 of 48

9 5 7/21 17: Profle Customers wth No Demand Data Calculaton of the Prelmnary Demands Data requrements 1. Hourly demands (KWP ) for each profle class concdent wth the fve PJM peak hours. 2. Loss factors (loss_factor). 3. Bllng energy for the customer (SUM_KWH ) that covers the fve PJM peak days and correspondng usage for class profle (SUM_KWH P ). Processes 1. Obtan the customer s bllng energy that ncludes the fve PJM peak dates. 2. Obtan the fve loads concdent wth the fve PJM peak for each profle class. 3. Calculate the profle class energy for the same tme perod as the customer s bllng energy. (Ths s done for every customer.) 4. Apply the rato of the customer s bllng energy to the profle usage to the profle concdent peaks. 5. Apply the approprate loss factor. CPLC Pr e lm n SUM _ KWH SUM _ KWH KWP ( loss _ factor ) Where = customer, p = profle class, and n = fve PJM peak hours. P Example Calculaton for a Profle Customer Hourly Demands for the Profle Class Rank Day KWP 1 6/09 17: /10 17: /17 17: /18 17: /21 17: Loss factor = 1.02 Start Meter Read Date Stop Meter Read Date Customer s Summer Energy Profle Class Energy for the Same Tme Perod 05/16/ :00 6/11/ : /12/ :00 07/13/ : /14/ :00 08/11/ : Un-reconcled peaks for Profle Customer, wth No Demand Data: CPLC 1Prelm = 2.48 * 1060 * 1.02 / = 4.27 CPLC 2Prelm = 2.43 * 1060 * 1.02 / = 4.18 CPLC 3Prelm = 1.90 * 2104 * 1.02 / = 4.54 CPLC 4Prelm = 2.27 * 2104 * 1.02 / = 5.43 Page 9 of 48

10 CPLC 5Prelm = 2.34 * 2104 * 1.02 / = 5.59 Profle Customer wth Demand Meters Calculaton of the Prelmnary Demands Data requrements 1. The maxmum bllng demand(s) (Bllng_KW ) for the bllng perod(s) that cover the PJM peak dates. 2. Correspondng bllng energy for the customer (SUM_KWH ) and the number of days durng the bllng month(s) for the customer (DAYS ) that cover the PJM peaks. 3. Loss factors (loss_factor). Process 1. Obtan for each customer, the maxmum bllng demand (Bllng_KW ), the bllng energy (KWH ), and the number of days (DAYS ) for the bllng months that cover the PJM peak dates. 2. Calculate the customers load factor based on the maxmum bllng demand for the customer and the bllng energy coverng the PJM peaks. Ths may nclude more than one bllng perod. Load _ Factor ( KWH / Bllng _ KW) /( Bllng _ days 24) 3. Calculate the concdent factor usng the customer s load factor based on ther bllng demand, where: 4 Conc _ factor 1 exp Load_ factor 4. Calculate the prelmnary concdent demands usng the concdent factor that corresponds to the PJM peak and the customer s summer monthly bllng demand that covers the respectve PJM peak. 5. Apply the approprate loss factor. CPLC Pr e lm n Bllng _ KW Conc _ factor loss _ factor Where n = fve PJM peaks and, = customer. Example Calculaton for Profle Customers wth Demand Meters Bll Perod 1: 06/03 07/02; Max_KW = 55.1; SUM_KWH = 16,000; DAYS = 30 Bll Perod 2:: 07/03 08/01; Max_KW = 63.4; SUM_KWH = 14,610; DAYS = 30 Example Calculatons for Bll Perod 1 Peak 1 4 Refer to Appendx 2 for the development of concdence factors. Page 10 of 48

11 30x Load _ Fac (16,000/55.1) / exp Conc _ factor 1 CPLC Pr elm Example Calculatons for Bll Perod 2 Peak 3 Load _ Fac (14,610/ 63.4)/ 30x24 0. Pr elm exp Conc _ factor 1 CPLC X Rank Day/Hour Alpha Value Conc_factor CPLC prelm 1 6/09 17: /10 17: /17 17: /18 17: /21 17: Loss Factor = CPLC 1Prelm = 0.684*55.1*1.073= CPLC 2Prelm = 0.704*55.1* 1.073= CPLC 3relm = 0.580*63.4*1.073= CPLC 4relm = 0.594*63.4*1.073= CPLC 5relm = 0.581*63.4*1.073= Reconclng Prelmnary Peak Loads to the Company Zonal Peak and to the Company Zonal Capacty Peak Allocaton Ths secton descrbes the process of scalng each customer s prelmnary peak loads, derved n the prevous secton, to the Company zonal peak and then to the Company s Zonal Weather Normalzed Concdent Summer Peak whch was determned by PJM. The result s a fnal Capacty Peak Load Contrbuton for each customer n the zone. The process conssts of steps descrbed below. Data requrements 1 The Company s total, unrestrcted zonal load for the fve PJM peak hours. 2 The Company s Zonal Weather Normalzed Concdent Summer Peak (CPLC PHI zone ). Ths value s provded by PJM. Assume CPLC PHI zone = for ths example. 3 Prelmnary unrestrcted hourly loads CPLC Prelm for each customer from the steps above. Process 1. Determne the sum of all customers prelmnary hourly loads (SUM_CPLC Prelm ) for each of the fve PJM peaks (ncludes any ALM to be added back; for ths example, assume that the Page 11 of 48

12 nterval customer has 40 kw of ALM on the 7/17-17:00 peak. The adjusted hourly load wth ALM would be = ). 2. Calculate the unaccounted for energy (UFE). Ths s the zonal demand mnus the sum of the customers prelmnary peaks. 3. Allocate the UFE to each of the customers CPLC prelm to determne the reconcled customer load (CPLC recon ) for each of the fve PJM peaks. The UFE s assgned to all customers based on a load weghted share. Steps 1 through 3 are llustrated below. Type of Customer 6/09-17:00 6/10 17:00 7/17 17:00 7/18 17:00 7/21 17:00 Interval Profle-no demand Profle-wth demand Sum of prelmnary demands (SUM_CPLC Prelm ) Zonal Load: UFE Allocaton of UFE & Fnal Reconcled Demands-(CPLC recon ) Interval Profle-no demand Profle-wth demand Sum of Reconcled Demands: Calculate the average of the customers reconcled loads. Average Type of 7/18 of Fve Customer 6/09-17:00 6/10 17:00 7/17 17:00 17:00 7/21 17:00 Demands Interval Profle-no demand Profle-wth demand Sum of the Average of the Fve demands Page 12 of 48

13 5. Calculate the reconclaton factor (RF) by dvdng the Company s Zonal Weather Normalzed Concdent Summer Peak by the sum the total averages of the customers reconcled demands. RF = / = Multply the reconclaton factor by each customer s prelmnary CPLC to determne each customer s fnal share of the total Zonal Weather Normalzed Concdent Summer Peak, CPLC Fnal. Where = customer. CPLC Fnal RF CPLC Pr elm Example Showng Customers Share of the PJM Peak Allocaton Customer Class PLC 1Prelm Reconclaton Factor PLC Fnal Interval Metered Profle no Demand Profle wth Demand Total: New Customers (New Servce Pont) or Servce Pont wthout Peak Perod Usage (Servce Pont Inactve) A default value usng class average data wll be assgned untl actual summer peak usage nformaton for the customer becomes avalable and an actual CPLC s calculated for the followng year. The profle class default values are updated annually and posted on the Suppler Support webste. 2.4 New Customers (Exstng Servce Pont) Snce the actual CPLC s calculated based on the energy consumed at a gven Servce Pont durng the prevous peak perod, thus contrbutng to the peak, the CPLC s nherted by the new customer. The CPLC value may be smaller or larger than the expected future calculated value but remans wth the Servce Pont untl actual summer peak usage nformaton for the customer becomes avalable and an actual CPLC s calculated for the followng year. 3 Supplers Capacty Peak Load Contrbuton The daly Suppler Capacty Peak Load Contrbuton (Suppler Capacty PLC) s the sum of the all customers Fnal Capacty PLCs served by each Suppler. For example, assume that Suppler Page 13 of 48

14 A serves the frst two customers n the example above. Then Suppler A s Capacty PLC would be KW (sum of Fnal Capacty PLC of KW and 4.92 KW). The reportng of Suppler Capacty PLC must occur as specfed by PJM gudelnes. The Company wll submt the Suppler Capacty PLCs (a.k.a, LSE Oblgaton Peak Loads) to PJM n accordance wth PJM s publshed submsson gudelnes. In the event that the Company s unable to submt Capacty PLC data accordng to the allowable PJM gudelnes for a gven day, the Company assumes that PJM wll use the most recent values avalable (those prevously submtted by the Company). 4 Informaton Coordnaton Responsbltes 4.1 Suppler The Suppler wll schedule capacty resources wth PJM n accordance wth PJM requrements. 4.2 PHI The Company wll compute and report to PJM the Suppler s Capacty Peak Load Contrbuton on a tmetable defned by PJM. The Company wll cooperate wth reasonable audt requests by Supplers. The Suppler shall bear the cost of the audt. The scope of the audt and the terms of payment are to be agreed upon by the Company and the Suppler pror to commencement of the audt. The Company wll address audt requests on a frst come, frst served bass. The suppler or schedulng coordnator shall be subject to Capacty Peak Load Contrbuton adjustments for any errors n arthmetc, computaton, or other errors..any adjustments to a suppler s Capacty Peak Load responsbltes wll be done as supported by PJM and n accordance wth PJM gudelnes. Dsputes shall be resolved through the PJM Dspute Resoluton process. Page 14 of 48

15 III SUPPLIER NETWORK SERVICE PEAK LOAD CONTRIBUTION 1 Introducton A Network Servce Peak Load Contrbuton (Transmsson PLC) s calculated for each customer n the Company zone. Under the Open Access Transmsson Tarff (OATT) submtted to FERC on September 24, 1998, the Transmsson PLC s based on the demand at the tme of the Company s metered zone peak load durng the twelve months ended October 31 of the pror calendar year. In accordance wth the PJM rules and procedures, the Company wll calculate a Transmsson PLC tcket for each customer on an annual bass. The Transmsson PLC value for a customer represents the customer s average load rato share of the Zone s metered peak loads. The Transmsson PLC value s determned from (1) the customer s load concdent wth the fve hghest metered peak loads of the Zone, and (2) the metered peak load of the Zone. The customer Transmsson PLC wll be updated n accordance wth PJM rules and procedures, wth supportng data posted on the Company s web ste. The Company wll also calculate and report to PJM the Suppler Network Servce Peak Load Contrbuton (Suppler Transmsson PLC), whch s the sum of customers Transmsson PLCs for each suppler. Ths secton descrbes the methods and calculatons used to derve the customer and Suppler Network PLCs. The sample calculatons are presented. 2 Annual Customer Network Servce Peak Load Contrbuton The dervaton of customer Network Servce Peak Load Contrbutons (Transmsson PLC or TPLC) conssts of two procedures: Determnng the prelmnary customer transmsson peak loads. Reconclng customer transmsson peak loads to the Company zonal peak loads and to the Company s Network Servce Peak as determned by PJM. 2.1 Determnng Prelmnary Customer Network Servce Peak Loads For ths procedure, the Company wll derve hourly estmated transmsson peak loads for each customer accordng to the customer s meterng type and profle class. Snce the sum of the customers estmated transmsson peak loads can devate from the Company s network zonal peak load, they are referred to as prelmnary transmsson peak loads. The method used to estmate a customer s prelmnary transmsson peak load depends on the type of meterng equpment used n collectng customer bllng data. Customer bllng data can be classfed n one of three ways: Page 15 of 48

16 nterval-metered customers who have hourly metered usage data, non-nterval metered customers who only have monthly energy readngs, and non-nterval metered customers who have maxmum demand readngs and monthly energy readngs. For the nterval-metered customers, actual demand readngs concdent wth the zonal (ACE, DPL or Pepco) peak hours are used to determne the customer s prelmnary peak load. For the non-nterval-metered customers wth monthly energy readngs only, profle estmates by customer classes are developed usng load research samples for whch hourly data are avalable. For the customers who have demand data, concdence factors are calculated for the correspondng hours of the zonal peaks. The determnaton of the customer peak load depends on the customer s assgned profle class. A profle class s a groupng of customers wth a smlar energy usage pattern. Note that an nterval-metered customer s not grouped wth other customers because of the avalablty of actual hourly data. Profle classes for non-nterval-metered customers are establshed accordng to the Company s tarff rate classes, bllng data, and avalable load research data. The dervaton of the prelmnary customer peak loads occurs n several steps. These steps are as follows: 1 For each customer, retreve fve hourly loads for the hours correspondng to the fve hghest peak demands for the zone ACE, DPL or Pepco. (For nterval-metered customers, the loads are the customer s hourly-metered loads; for non-nterval metered customers wth no demand data, the loads are estmated usng the hourly profle class loads; and for non-nterval metered customers wth demand data, the loads are estmated usng the customer s maxmum demand for the summer bllng cycles and the concdent factors for the fve zonal peaks.) 2 Apply the approprate loss factor 5 to each demand. Sum the customers concdent demands. Ths s the total un-reconcled load. 3 Reconcle the sum of the customers loads to the metered zonal load for each of the fve zonal peak tmes. The dfference between the metered zonal peak and the sum of the estmated customers demands concdent wth the zonal peak s called unaccounted for energy (UFE). UFE s assgned to all customers based on a load weghted share of the sum total of the hourly customer loads wth losses. 4 Calculate the average of the reconcled demands for each customer except wholesale customers. For the wholesale customers, the transmsson peak load contrbuton s the sngle reconcled demand correspondng to the zonal peak. 5 In all three PHI zones (ACE, DPL and PEPCO), a demand (or peak) loss factor s used that s specfc to the peak perod (see Demand Loss Factor n Glossary) Page 16 of 48

17 5 Calculate the reconclaton factor (RF). The RF s the zonal peak, less the wholesale load dvded by the sum the average of the reconcled demands, less wholesale load. The zonal peak s verfed by PJM. 6 Calculate the Fnal Transmsson Peak Load for each customer by multplyng the customer s average of the reconcled demands by the reconclaton factor. The framework of calculaton steps s presented below. Hourly Metered Customers Calculaton of the Prelmnary Demands Data requrements 1 Hourly demands for each customer concdent wth the hghest fve zonal peak hours (KW ). 2 Loss factors (loss_factor). Processes 1 Obtan the fve hourly customer metered loads concdent wth the hghest fve zonal metered peak loads for each hourly-metered customer. 6 2 Apply the approprate loss factor. 7 TPLC Pr e lm KW loss _ factor Where n = fve hghest zonal peak hours (on separate days). Example Calculaton for an Hourly Metered Customer, loss factor = 1.02 Rank Day/hour KW Prel KW wth Losses - TPLC Prelm 1 6/09 17: /10 17: /17 17: /18 17: /21 17: Profle Customers wth No Demand Data Calculaton of the Prelmnary Demands Data requrements 1. Hourly demands (KWP ) for each profle class concdent wth the fve zonal peak hours. 6 If a customer s mssng data for the hghest fve peak hours, proxy data are substtuted for the customer. If proxy data are not avalable, the TPLC wll be based on the zonal peak hours where data are avalable. 7 Loss factors are avalable on the Company webstes. Page 17 of 48

18 Processes 2. Loss factors (loss_factor). 3. Bllng energy for the customer (SUM_KWH ) that covers the fve zonal peak days and correspondng usage for class profle (SUM_KWH P ). 1. Obtan the customer s bllng energy that ncludes the fve zonal peaks. 2. Obtan the fve loads concdent wth the fve zonal peak loads for each profle class. 3. Calculate the profle class energy for the same tme perod as the customer s bllng energy. Ths s done for every customer. 4. Apply the rato of the customer s bllng energy to the profle usage to the profle concdent peaks. 5. Apply the approprate loss factor. SUM _ KWH p TPLC n KWP loss _ factor Pr e lm P SUM _ KWH Where = customer, p = profle class, and n = fve zonal peaks. Example Calculaton for a Profle Customer Hourly Demands for the Profle Class Rank Day KWP 1 6/09 17: /10 17: /17 17: /18 17: /21 17: Loss factor 1.02 Start Meter Read Date Stop Meter Read Date Customer s Summer Energy Profle Class Energy for the Same Tme Perod 05/16/ :00 6/11/ : /12/ :00 07/13/ : /14/ :00 08/11/ : Un-reconcled peaks for Profle Customer, wth No Demand Data: TPLC 1Prelm = 2.48 * 1060 * 1.02 / = 4.27 TPLC 2Prelm = 2.43 * 1060 * 1.02 / = 4.18 TPLC 3Prelm = 1.90 * 2104 * 1.02 / = 4.54 TPLC 4Prelm = 2.27 * 2104 * 1.02 / = 5.43 TPLC 5Prelm = 2.34 * 2104 * 1.02 / = 5.59 Page 18 of 48

19 Profle Customer wth Demand Meters Calculaton of the Prelmnary Demands Data requrements 1. Customer maxmum bllng demand(s) (Bllng_KW ) for the bllng perod(s) that cover the zonal peak dates. 2. Correspondng bllng energy for the customer (SUM_KWH ) and the number of days durng the bllng month(s) for the customer (DAYS ) that covers the zonal peaks. 3. Loss factors (loss_factor). Process 1. Obtan the maxmum bllng demand for each customer, the bllng energy (KWH C ), and the number of days (DAYS ) for the bllng months that nclude the PJM peak dates. 2. Calculate the customers load factor based on the maxmum bllng demand for the customer and the bllng energy coverng the PJM peaks. Ths may nclude more than one bllng perod. Load _ Factor ( KWH / Bllng _ KW) /( Bllng _ days 24) 3. Calculate the concdent factor for the ndvdual customer usng the customer s load factor based on ther bllng demand, where: 8 Conc _ factor 1 exp Load_ factor 4. Calculate the concdent demand usng the concdent factor that corresponds to the zonal peak and the customer s summer monthly bllng demand that covers the respectve zonal peak. 5. Apply the loss factors. TPLC Pr e lm n Bllng _ KW Conc _ factor loss _ factor Where n = fve hghest zonal peak hours (on separate days) and = customer. Example Calculaton for Profle Customers wth Demand Meters Bll Perod 1: 06/03 07/02; Max_KW = 55.1; SUM_KWH = 16,000; DAYS = 30 Bll Perod 2:: 07/03 08/01; Max_KW = 63.4; SUM_KWH = 14,610; DAYS = 30 8 Refer to Appendx 2 for the development of concdence factors. Page 19 of 48

20 Example Calculatons for Bll Perod 1 Peak 1 Load _ Fac (16,000/55.1) / 30x24 0. Pr elm exp Conc _ factor 1 TPLC Example Calculatons for Bll Perod 2 Peak 3 Load _ Fac (14,610/ 63.4) / 30x24 0. Pr elm exp Conc _ factor 1 TPLC X Rank Day/Hour Alpha Value Conc_factor TPLC prelm 1 6/09 17: /10 17: /17 17: /18 17: /21 17: Loss Factor = TPLC 1Prelm = 0.684*55.1*1.073= TPLC 2Prelm = 0.704*55.1* 1.073= TPLC 3relm = 0.580*63.4*1.073= TPLC 4relm = 0.594*63.4*1.073= TPLC 5relm = 0.581*63.4*1.073= Reconclng Prelmnary Peak Loads to the Company Zonal Peak and to the Company Zonal Capacty Peak Allocaton Ths secton descrbes the process of scalng each customer s prelmnary peak loads, derved n the prevous secton, to the Company zonal peak and then to the Company zonal capacty peak allocaton whch was set by PJM. The result s a fnal Peak Load Contrbuton for each customer n the zone. The process conssts of steps descrbed below. Data requrements 1. The Company total zonal load for the fve peak days. 2. Prelmnary hourly loads TPLC Prelm for each customer from the steps above. Process 1. Determne the sum of all customers prelmnary hourly loads (SUM_TPLC Prelm ) for each of the fve zonal peaks. 2. Calculate the unaccounted for energy (UFE). Ths s the zonal demand mnus the sum of the customers prelmnary peaks. Page 20 of 48

21 3. Allocate the UFE to each of the customers TPLC Prelm to determne the reconcled customer load (TPLC recon ) for each of the fve zonal peaks. The UFE s assgned to all customers based on a load weghted share. Steps 1 through 3 are llustrated below. Type of Customer 6/09-17:00 6/10 17:00 7/17 17:00 7/18 17:00 7/21 17:00 Interval Profle-no demand Profle-wth demand Sum of prelmnary demands (SUM_TPLC Prelm ) Zonal Load: UFE Allocaton of UFE & Fnal Reconcled Demands-(TPLC recon ) Interval Profle-no demand Profle-wth demand Sum of Reconcled Demands: Calculate the average the customers reconcled loads. Average of Type of Fve Customer 6/09-17:00 6/10 17:00 7/17 17:00 7/18 17:00 7/21 17:00 Demands Interval Profle-no demand Profle-wth demand Sum of the Average of the Fve demands Calculate the reconclaton factor (RF) by dvdng the Company s zonal peak, as verfed by PJM, less wholesale dvded by the sum of the average customers reconcled peaks, less wholesale load. Page 21 of 48

22 RF = / = Multply the reconclaton factor by each customer s prelmnary TPLC to determne each customer s fnal share of the zonal transmsson peak TPLC Fnal. Where = customer. TPLC Fnal RFTPLC Pr elm Example Showng Customers Share of the Transmsson Zonal Capacty Oblgaton Customer Class TPLC 1Prelm Scalng Factor TPLC Fnal Interval Metered Profle no Demand Profle wth Demand Total: New Customers (New Servce Pont) or Servce Pont wthout Peak Perod Usage (Servce Pont Inactve) A default value usng class average data wll be assgned untl actual summer peak usage nformaton for the customer becomes avalable and an actual TPLC s calculated for the followng year. The profle class default values are updated annually and posted on the Company s webstes. 2.4 New Customers (Exstng Servce Pont) Snce the actual TPLC s calculated based on the energy consumed at a gven Servce Pont durng the prevous peak perod, thus contrbutng to the peak, the TPLC s nherted by the new customer. The TPLC value may be smaller or larger than the expected future calculated value but remans wth the Servce Pont untl actual summer peak usage nformaton for the customer becomes avalable and an actual TPLC s calculated for the followng year. 3 Supplers Network Servce Peak Load Contrbuton The Suppler Network Servce Peak Load Contrbuton (Suppler Transmsson PLC) s the sum of the Customer TPLCs for that Suppler. For example, gven the customers TPLCs of and 5.16 calculated above, the TPLC for the Suppler s Suppler Transmsson PLCs wll be reported as specfed n PJM gudelnes. The Company wll submt the Suppler Transmsson PLCs to PJM n accordance wth PJM s publshed submsson gudelnes. In the event that the Company s unable to submt Suppler Transmsson PLC data accordng to the allowable PJM gudelnes for a gven day, the Company assumes that PJM wll use the most recent values avalable (those prevously submtted by the Company). Page 22 of 48

23 4 Informaton Coordnaton Responsbltes 4.1 Suppler The Company wll compute and make avalable the suppler s transmsson peak load contrbuton n accordance wth PJM requrements. 4.2 PHI The Company wll compute and report to PJM the Suppler s daly Transmsson Peak Load Contrbuton on a tmetable defned by PJM. The Company wll cooperate wth reasonable audt requests by Supplers. The Suppler shall bear the cost of the audt. The scope of the audt and the terms of payment are to be agreed upon by the Company and the Suppler pror to commencement of the audt. The Company wll address audt requests on a frst come, frst served bass. The suppler or schedulng coordnator shall be subject to Transmsson Peak Load Contrbuton adjustments for any errors n arthmetc, computaton, or other errors. Any adjustments to a suppler s Transmsson Peak Load responsbltes wll be done as supported by PJM and n accordance wth PJM gudelnes. Dsputes shall be resolved through the PJM Dspute Resoluton process. Page 23 of 48

24 IV SUPPLIER HOURLY ENERGY OBLIGATION 1 Introducton PJM determnes the prce of energy n two separate markets, called the Two-Settlement market. The Two-Settlement market conssts of the followng two markets: Day-ahead Energy Market The day-ahead energy market s a forward market n whch hourly clearng prces are calculated for each hour of the next operatng day based on generaton offers, demand bds and blateral transacton schedules submtted nto the day-ahead market. The day-ahead market allows partcpants to purchase and sell energy at bndng day-ahead prces. Real-tme Market or Real-tme Balancng Market The balancng market s the realtme energy market n whch hourly clearng prces are determned by the actual system operatons securty-constraned economc dspatch. Supplers wll pay balancng prces (at the real tme prce) for any demand that exceeds ther day-ahead scheduled quanttes and wll receve revenues (at the real tme prce) for demand devatons below ther scheduled quanttes. Partcpaton by supplers n the Day-ahead Energy Market s voluntary and the suppler s responsble for submttng the day-ahead demand forecast for ther customers to PJM. Partcpaton n the Real-tme market s mandatory and the Company s responsble for calculatng each suppler s real-tme hourly load responsblty on a day-after bass and reportng the nformaton to PJM. The Company wll also calculate a subsequent suppler s real-tme hourly load responsblty or fnal settlement for the Real-tme Market to account for actual usage data obtaned followng the close of the meter-readng cycles. The dfference between the day-after and fnal settlement, the suppler hourly load adjustment, wll be reported to PJM wthn two months after the month subject to adjustment, or as requred by PJM gudelnes. 2 Day-ahead Energy Market As part of PJM s Day-ahead Energy Market, the suppler s responsble for forecastng ts customer s Hourly Energy Oblgaton (HEO) and submttng the data to PJM n accordance wth PJM s gudelnes, generally by noon on the day before the actual operatng day. Page 24 of 48

25 3 Real Tme Balancng Market 3.1 Day-after Estmates As part of PJM s hourly energy nterchange settlement process, the Company wll submt to PJM the hourly energy usage values for each suppler on a day-after bass. Each of the hourly usage values s the aggregate usage for the suppler s customers estmated for the prevous day usng nformaton avalable to the Company the day-after. The nformaton used ncludes actual and hstorcal customer nterval meter readngs, hstorcal load profle data, actual weather condtons, and the Company Zone Load for the prevous day. The aggregate usage for all the supplers customers s referred to as the Suppler Hourly Energy Oblgaton (Suppler HEO), and represents the Suppler s hourly load responsblty for PJM accountng purposes. PJM wll use the Suppler HEO quanttes to perform an ntal balancng settlement or day-after settlement for the Real-tme Market. The Day-after Settlement entals computng the dfference between the Suppler HEO results of the Day-ahead Energy Market (submtted by the suppler) and the day-after results (submtted by the Company). PJM determnes suppler charges or credts based on the hourly usage dfferences and hourly Real-tme Prces. These charges or credts wll be aggregated nto a monthly suppler energy-nterchange bll. The dervaton of the Supplers HEO conssts of two processes. Determne the prelmnary Suppler HEO for each hour. Reconcle Suppler HEO to the Company Zone Load. The sample calculatons presented n ths secton are based on a settlement for two supplers that each serve three customers. The hours endng 1:00 through 5:00 are presented for the settlement day Determnng Day-After Hourly Energy Oblgaton for Real-tme Market Ths secton descrbes the methods and calculatons used to derve the Day-after Supplers Hourly Energy Oblgaton (HEO) or hourly energy load for the Real-tme Energy Market. The Company wll estmate hourly energy oblgatons for each customer accordng to the customer s meterng type. For the customers who do not have nterval meters, a regresson model of hourly load as a functon of weather varables s used to develop the hourly loads for the profled customers. Refer to Appendx 1: Load Proflng Methodology for more nformaton. For customers that are nterval metered but who do not have data for the settlement day, a proxy day method s used. The same day, week pror s used as a proxy. If the same day week pror s not avalable, the system wll look back up to 10 weeks. If no data are avalable, then a class average profle s used. The dervaton of the estmated hourly energy load occurs n several steps. The steps are as follows: Page 25 of 48

26 1. Obtan the fnal Company zone load data from PJM and the actual weather data for the settlement day. 2. Usng the weather data for the settlement day, the hourly loads for the profled classes for the ACE, DPL and Pepco zones are calculated. 3. Avalable actual load data for the settlement day are retreved for customers wth daly-read meters. If data are not avalable for the settlement day, hstorcal nformaton s used for the daly-read customers. 4. For each profle customer, adjust the class profle load assgned to the customer by the rato of the customer s usage pror to or coverng the settlement perod to the profle class usage over the same perod. 5. Adjust customer loads by the approprate loss factor Adjust the customer loads to ensure that they sum to the hourly Company Zone Load. 7. Sum ndvdual customer loads for each suppler. Data Requrements 1. Actual weather data for the settlement day. 2. Profle customer load data usng weather data for the settlement day. 3. Actual nterval-metered data for daly-read nterval metered customers. 4. Fnal Company zone loads from PJM. Procedures for Hourly Metered Accounts 1. Retreve customer load data for nterval-metered accounts. Ths s ether actual data for the settlement day or a proxy day. Interval Customer Load (Hours 1:00-5:00) Customer KW 1 KW 2 KW 3 KW 4 KW Sum Loss adjustment factor for customer 1 and for customer Apply the approprate loss factor to each customer s load data. HEO Interval h KW h loss _ factor Where h represents hours one through twenty-four. 9 Ths s an energy (average) loss factor and apples to all PHI zones (see Loss Factor reference n Glossary) Page 26 of 48

27 Estmated Load for Interval Metered Customers (Hours 1:00-5:00) Customer KW 1 KW 2 KW 3 KW 4 KW Sum If an nterval metered customer s hstorc nterval data are not avalable, the customer s load for the settlement day s assgned the class average profle. The class average profle s based on the customer s rate code. Procedures for Profle Customers 1. Retreve class profle data for the settlement day. Class Profle Load for Settlement Day (Hours 1:00-5:00) Profle KW 1 KW 2 KW 3 KW 4 KW Loss adjustment factor s for all three profle classes. 2. Calculate the Customer s Usage Factor: The customer s usage factor (Usage C ) s used to scale the profle class load whch results n an hourly load curve for each customer. The customer usage factor s calculated by dvdng the customer s bllng data (KWH C ) for the perod by the energy from the class profle class data (KWH P ) for the same perod. The customer usage factor s estmated as follows: 1. Retreve the customer s energy consumpton (KWH C ) for the readng perod that ncludes or precedes the day of nterest. 2. Retreve profle class data (KW P ) for the same perod as the customers readng perod and calculate the energy (KWH P ) for the same perod as the customer s bllng energy. 3. Create the customer usage factor (Usage C ) by dvdng the customer s energy consumpton by the profle KWH P for the same perod. The energy for the class average profle s generated after algnng the profle data perod wth the customer readng perod. Usage C Bll _ Stop Bll _ Start KWH KWH C P Page 27 of 48

28 Where Bll_Start s the customer bll hstory record bll start date, Bll_Stop s the customer bll hstory record bll stop date. 3. Calculate the prelmnary HEO for the profle class. HEO P h C KW Usage loss _ factor h Where h represents hours one through twenty-four, C represents customer, and P represents profle. The resultng customer hourly energy oblgatons are shown below. Estmated Load for Profle Customers (Hours 1:00-5:00) Customer Profle C Usage KW 1 KW 2 KW 3 KW 4 KW The usage values are calculated for each customer usng hstorc bllng data and class profles. IV. Aggregaton of Loads by Suppler The customer energy load results of the prevous secton wll be aggregated by suppler and meterng type (nterval and profle) and overall to determne the Prelmnary HEO for the Realtme Energy Market. Assume that customers one, three, and four are assocated wth Suppler A and customers two, fve and sx are assocated wth Suppler B. The resultng prelmnary hourly energy oblgatons are shown below by suppler and meterng type. Prelmnary HEO by Supplers Type (Hours 1:00-5:00) Suppler Meter Type KW 1 KW 2 KW 3 KW 4 KW 5 Page 28 of 48

29 A Interval A Profle Total Suppler A B Interval B Profle Total Suppler B Total_HEO Prelm Scalng Hourly Energy Loads to the Fnal Company Zonal Energy Load Ths secton descrbes the process of scalng each suppler s prelmnary estmate of hourly energy to the fnal Company Zonal Energy Load. On a daly bass, the fnal Company Zonal Energy Load, as determned by PJM, s avalable from PJM for the prevous day(s). Ths nformaton s downloaded for use n the HEO calculatons. The Total Unaccounted for Energy (UFE) for each hour s determned by calculatng the dfference between the Fnal Company Zone Energy Load and the Prelmnary HEO. The UFE can be ether postve or negatve and s a result of hourly loss dfferences, samplng error, meterng error and estmated data. Ths adjustment s assgned based on a load weghted share of the suppler s load (HEO ) versus the Prelmnary HEO (Total_HEO Prelm ). 1. Calculate the Total UFE. The Total UFE s the dfference between the Fnal Company Zonal Energy Load (Fnal_HEO Pepco ) and the sum of all the supplers prelmnary HEO (Total_HEO Prelm ). Total _ UFE Fnal _ HEO Pepco Total _ HEO Pr elm Fnal Company Zone Load and Total Unaccounted for Energy (Hours 1:00-5:00) KW 1 KW 2 KW 3 KW 4 KW 5 Fnal_HEO Pepco Total_HEO Prelm Total_UFE Calculate each suppler s share of the UFE by multplyng the total UFE by the rato of suppler s load (HEO ) to the total load for all customers (Total_ HEO). Page 29 of 48

30 UFE HEO Total _ UFE Total _ HEO Where = suppler. Supplers share of UFE (Hours 1:00-5:00) Suppler KW 1 KW 2 KW 3 KW 4 KW 5 A B Total UFE Calculate each suppler hourly energy oblgaton (HEO Fnal ) as the sum of the suppler s hourly energy oblgaton and ther hourly UFE allocaton. HEO UFE HEO Fnal Fnal Estmates of HEO by Supplers (Hours 1:00-5:00) KW 1 KW 2 KW 3 KW 4 KW 5 Suppler A Suppler B Market Adjustments The second phase of the PJM energy nterchange Real-tme Settlement process occurs after all actual monthly energy usage data has been processed for the day n queston. The Company wll calculate the hourly energy oblgatons for each suppler usng avalable actual customer bllng data for the day of nterest. The Company wll then calculate the hourly dfferences between the orgnal Suppler HEO (estmated day-after) and the updated Suppler HEO for all of the supplers. These hourly klowatt-hour dfferences wll be reported to PJM wthn a perod of tme suffcent to meet PJM bll adjustment accountng requrements. PJM wll use the adjusted Suppler HEO quanttes to perform a fnal balancng settlement for the Real-tme Market. The updated Suppler HEO wll employ the same processng steps used to derve the orgnal Suppler HEO, but wll use all avalable data collected subsequent to the orgnal calculaton. The dervaton of the Fnal Supplers HEO conssts of two processes. Page 30 of 48