Operating Agreement Accounting

Transcription

1 PJM Manual 28: Operating Agreement Accunting Revisin: 754 Effective Date: July 01, 2016 Prepared by: Market Settlements Develpment Department PJM 2016

2 PJM Manual 28: Manual 28: Operating Agreement Accunting Table f Cntents Operating Agreement Accunting Table f Cntents Table f Cntents... ii Table f Exhibits... v Apprval... 1 Current Revisin... 1 Intrductin... 2 ABOUT PJM MANUALS... 2 ABOUT THIS MANUAL... 2 Intended Audience... 2 References... 3 USING THIS MANUAL... 3 What Yu Will Find In This Manual... 3 Sectin 1: Market Overview MARKET ACCOUNTING OVERVIEW ACCOUNTING INPUT DATA... 7 Sectin 2: Interface Pricing BUSINESS RULES FOR INTERFACE PRICING... 8 Sectin 3: Spt Market Energy Accunting SPOT MARKET ACCOUNTING OVERVIEW BUSINESS RULES FOR INSCHEDULE AND POWER METER DATA SUBMISSIONS CALCULATING SPOT MARKET INTERCHANGE TRANSMISSION LOSS DE-RATION FACTORS STATE-ESTIMATED VS. REVENUE-METERED ENERGY QUANTITIES RESIDUAL METERED LOAD RESIDUAL METERED LOAD AGGREGATE DEFINITIONS SPOT MARKET ENERGY CHARGES RECONCILIATION FOR SPOT MARKET ENERGY CHARGES Sectin 4: Regulatin Accunting REGULATION ACCOUNTING OVERVIEW REGULATION CREDITS REGULATION CHARGES RECONCILIATION FOR REGULATION CHARGES Sectin 5: Operating Reserve Accunting OPERATING RESERVE ACCOUNTING OVERVIEW CREDIT FOR OPERATING RESERVE Credits fr Pl-Scheduled Generating Resurces Credits fr Pl-Scheduled Transactins Credits fr Synchrnus Cndensing Credits fr Canceled Pl-Scheduled Resurces PJM 2016 Revisin 754, Effective Date: 07/01/2016 ii

3 Manual 28: Operating Agreement Accunting Table f Cntents Credits fr Resurces prviding Quick Start Reserve Credits fr Resurces Reduced r Suspended due t a Transmissin Cnstraint r fr Other Reliability Reasns Credits fr Resurces Perfrming Annual Scheduled Black Start Tests Credits fr Resurces Prviding Reactive Services CHARGES FOR OPERATING RESERVE RECONCILIATION FOR OPERATING RESERVE CHARGES Sectin 6: Synchrnized Reserve Accunting SYNCHRONIZED RESERVE ACCOUNTING OVERVIEW CREDITS FOR SYNCHRONIZED RESERVE CHARGES FOR SYNCHRONIZED RESERVE RECONCILIATION FOR SYNCHRONIZED RESERVE CHARGES Sectin 7: Nn-Synchrnized Reserve Accunting NON-SYNCHRONIZED RESERVE ACCOUNTING OVERVIEW CREDITS FOR NON-SYNCHRONIZED RESERVE CHARGES FOR NON-SYNCHRONIZED RESERVE RECONCILIATION FOR NON-SYNCHRONIZED RESERVE CHARGES Sectin 8: Transmissin Cngestin Accunting Overview TRANSMISSION CONGESTION ACCOUNTING OVERVIEW TRANSMISSION CONGESTION CHARGES Implicit Transmissin Cngestin Charges Explicit Transmissin Cngestin Charges RECONCILIATION FOR TRANSMISSION CONGESTION CHARGES TRANSMISSION CONGESTION CREDITS FTRs and FTR Target Allcatins Ttal Transmissin Cngestin Charges Hurly Allcatin f Ttal Transmissin Cngestin Charges Mnthly Allcatin f Excess Cngestin Charges REASSIGNMENT OF FINANCIAL TRANSMISSION RIGHTS (FTRS) Sectin 9: Transmissin Lsses Accunting TRANSMISSION LOSSES ACCOUNTING OVERVIEW TRANSMISSION LOSS CHARGES Implicit Transmissin Lss Charges Explicit Transmissin Lss Charges RECONCILIATION FOR TRANSMISSION LOSS CHARGES TRANSMISSION LOSS CREDITS RECONCILIATION FOR TRANSMISSION LOSS CREDITS Sectin 10: Emergency Energy Accunting EMERGENCY ENERGY ACCOUNTING OVERVIEW EMERGENCY ENERGY PURCHASES BY PJM EMERGENCY ENERGY SALES BY PJM MINIMUM GENERATION EMERGENCY PURCHASES BY PJM MINIMUM GENERATION EMERGENCY SALES BY PJM Sectin 11: PJM Lad Respnse Prgrams Accunting PJM LOAD RESPONSE PROGRAMS OVERVIEW PJM LOAD RESPONSE PROGRAMS ACCOUNTING PROCEDURES Full Emergency and Emergency Energy Only Lad Respnse Prgram Ecnmic Lad Respnse Prgram PJM 2016 Revisin 754, Effective Date: 07/01/2016 iii

4 Manual 28: Operating Agreement Accunting Table f Cntents Sectin 12: Metering Recnciliatin Accunting METER ERROR CORRECTION BILLING Meter Crrectins between PJM Members Meter Crrectins between Cntrl Areas Sectin 13: Statin Pwer Accunting STATION POWER ACCOUNTING PROCEDURE Third-Party Supply Remte Self-Supply Sectin 14: Unscheduled Transmissin Service Accunting UNSCHEDULED TRANSMISSION SERVICE ACCOUNTING PROCEDURE Sectin 15: Ramap PAR Facilities Accunting RAMAPO PAR FACILITIES ACCOUNTING PROCEDURE Sectin 16: Financial Transmissin Rights Auctins Settlement FTR AUCTIONS SETTLEMENT OVERVIEW FTR AUCTION BUYERS CHARGES FTR AUCTION SELLERS CREDITS ALLOCATION OF FTR AUCTION REVENUES Sectin 17: Auctin Revenue Rights Settlements ARR SETTLEMENTS OVERVIEW DAILY REASSIGNMENT OF ARRS AS LOAD CHANGES ALLOCATION OF ANNUAL AND MONTHLY FTR AUCTION REVENUES Sectin 18: Inadvertent Interchange Accunting INADVERTENT INTERCHANGE BILLING Sectin 19: Day Ahead Scheduling Reserve Accunting DAY AHEAD SCHEDULING RESERVE ACCOUNTING OVERVIEW CREDITS FOR DAY AHEAD SCHEDULING RESERVE CHARGES FOR DAY AHEAD SCHEDULING RESERVE RECONCILIATION FOR DAY-AHEAD SCHEDULING RESERVE CHARGES Sectin 20: Billing BILLING PROCESS OVERVIEW Revisin Histry PJM 2016 Revisin 754, Effective Date: 07/01/2016 iv

5 Manual 28: Operating Agreement Accunting Table f Exhibits Table f Exhibits EXHIBIT 1: TYPES OF PJM SERVICES... 7 PJM 2016 Revisin 754, Effective Date: 07/01/2016 v

6 Manual 28: Operating Agreement Accunting Apprval and Current Revisin Apprval Apprval Date: 07/13/2016 Effective Date: 07/01/2016 Ray Fernandez, Manager Market Settlements Develpment Current Revisin Revisin 754 (07/01/2016): Updated Sectin 3.5 t prvide a descriptin f a fully metered EDC. Frmatted: (nne) Cver t Cver Peridic review clarifying changes t better describe existing rules and prcesses. PJM 2016 Revisin 754, Effective Date: 07/01/2016 1

7 Manual 28: Operating Agreement Accunting Intrductin Intrductin Welcme t the PJM Manual fr Operating Agreement Accunting. In this Intrductin, yu will find infrmatin abut PJM Manuals in general, an verview f this PJM Manual in particular, and infrmatin n hw t use this manual. Abut PJM Manuals The PJM Manuals are the instructins, rules, prcedures, and guidelines established by the PJM fr the peratin, planning, and accunting requirements f PJM and the PJM Energy Market. The manuals are gruped under the fllwing categries: Transmissin PJM Energy Market Generatin and transmissin intercnnectin Reserve Accunting and Billing PJM administrative services Fr a cmplete list f all PJM Manuals, g t and select Manuals under the Dcuments pull-dwn menu. Abut This Manual The PJM Manual fr Operating Agreement Accunting is ne f a series f manuals within the Accunting and Billing set f manuals. This manual fcuses n the accunting fr energy with the PJM Energy Market. It establishes the basis fr the charges and credits fr the purchase and sale f energy and related services. The PJM Manual fr Operating Agreement Accunting cnsists f 21 sectins. The sectins are listed in the table f cntents beginning n page ii. Intended Audience The intended audiences fr this PJM Manual fr Operating Agreement Accunting are: PJM Members and Transmissin Custmers Other Cntrl Areas PJM 2016 Revisin 754, Effective Date: 07/01/2016 2

8 Manual 28: Operating Agreement Accunting Intrductin External auditrs, lawyers, and regulatrs PJM settlements staff and audit staff PJM custmer relatins and training staff References The references t ther dcuments that prvide backgrund r additinal detail directly related t the PJM Manual fr Operating Agreement Accunting are: PJM Manual fr Open Access Transmissin Tariff Accunting (M-27) PJM Manual fr Balancing Operatins (M-12) PJM Manual fr Billing (M-29) PJM Manual fr Energy & Ancillary Services Market Operatins (M-11) PJM Manual fr Administrative Services fr the PJM Intercnnectin Agreement (M-33) Operating Agreement f PJM Intercnnectin, L.L.C. PJM Open Access Transmissin Tariff Using This Manual We believe that explaining cncepts is just as imprtant as presenting the prcedures. This philsphy is reflected in the way we rganize the material in this manual. We start each sectin with an verview. Then, we present details, prcedures r references t prcedures fund in ther PJM manuals. What Yu Will Find In This Manual A table f cntents that lists tw levels f subheadings within each f the sectins An apprval page that lists the required apprvals and a brief utline f the current revisin Sectins cntaining the specific guidelines, requirements, r prcedures including PJM actins and PJM Member actins PJM Revisin 754, Effective Date: 07/01/2016

9 Manual 28: Operating Agreement Accunting Intrductin A sectin at the end detailing all previus revisins f this PJM manual PJM Revisin 754, Effective Date: 07/01/2016

10 Manual 28: Operating Agreement Accunting Sectin 1: Market Overview Sectin 1: Market Overview Welcme t the Market Overview sectin f the PJM Manual fr Operating Agreement Accunting. In this sectin, yu will find the fllwing infrmatin: A descriptin f the PJM Energy Market accunting services (see Market Accunting Overview ). A descriptin f PJM Market Settlements Accunting Input Data (see Accunting Input Data ). 1.1 Market Accunting Overview There are several services within the PJM Energy Market fr which PJM calculates charges and credits that are allcated amng the PJM Members. PJM prvides accunting fr the fllwing services that are described in detail in the ther sectins f this manual. Spt Market Energy Energy bught r sld by PJM Members thrugh the PJM Energy Market. Transmissin Cngestin The increased cst f energy delivered when the Transmissin System is perating under cnstrained cnditins. Transmissin Lsses Energy requirements in excess f lad requirements due t the energy cnsumed by the electrical impedance characteristics f the Transmissin System. Regulatin The capability f a specific resurce with apprpriate telecmmunicatins, cntrl, and respnse capability t increase r decrease its utput in respnse t a regulating cntrl signal (see the PJM Manual fr Balancing Operatins). Synchrnized Reserve The capability f a specific resurce with apprpriate telecmmunicatins, cntrl, and respnse capability t increase utput (r reduce cnsumptin) in respnse t a synchrnized reserve event and/r perate at a pint that deviates frm ecnmic dispatch (including cndensing mde) t prvide 10- minute reserve (see the PJM Manual fr Balancing Operatins). Nn-Synchrnized Reserve The capability f a specific nn-emergency generatin resurce with apprpriate telecmmunicatins, cntrl, and respnse capability t increase utput frm an ffline state in respnse t a nn-synchrnized reserve event t prvide 10-minute reserve (see the PJM Manual fr Balancing Operatins). PJM 2016 Revisin 754, Effective Date: 07/01/2016 5

11 Manual 28: Operating Agreement Accunting Sectin 1: Market Overview Operating Reserve The amunts f generating Capacity scheduled t be available fr specified perids f an Operating Day t ensure the reliable peratin f PJM. Reactive Services The amunts f generatin altered by PJM t maintain reactive reliability. Synchrnus Cndensing The instructins t generatrs t perate in synchrnus cndensing mde fr reasns ther than reactive supprt r synchrnized reserve t ensure the reliable peratin f PJM. Emergency Energy Energy bught frm ther Cntrl Areas r sld t ther Cntrl Areas by PJM due t Emergencies either within PJM r within the ther Cntrl Areas. PJM Emergency Lad Respnse The Emergency Lad Respnse Prgram is designed t prvide a methd by which end-use custmers may be cmpensated by PJM fr vluntarily reducing lad during an emergency event. PJM Ecnmic Lad Respnse The Ecnmic Lad Respnse Prgram is designed t prvide incentive t end-use custmers r Curtailment Service Prviders ( CSP ) t enhance the ability and pprtunity fr reductin f cnsumptin when PJM Lcatinal Marginal Prices ( LMP ) are high. Metering Recnciliatin Metering errrs and crrectins that are recnciled at the end f each mnth by a meter errr crrectin charge adjustment. Inadvertent Interchange Differences between hurly net actual energy flws and net scheduled energy flw int r ut f the PJM cntrl area. Unscheduled Transmissin Service Service that PJM Members can prvide t r receive frm the New Yrk ISO and are credited r charged accrding t the Operating Agreement. Ramap PAR Facilities Carrying charges cllected frm PJM Mid-Atlantic Cntrl Zne transmissin wners paid t the New Yrk ISO fr the Phase Angle Regulatrs (PARs) at Ramap and charged accrding t the Operating Agreement. Financial Transmissin Rights Auctin market participants may purchase/sell FTRs by participating in the Annual and Mnthly auctins. Auctin Revenue Rights ARRs are the mechanism by which the prceeds frm the FTR auctins are allcated. PJM Revisin 754, Effective Date: 07/01/2016

12 Manual 28: Operating Agreement Accunting Sectin 1: Market Overview These services are applicable t the different types f market participatin, as shwn in Exhibit 1. Each service is further brken dwn in the billing statement (see the PJM Manual fr Billing). MARKET BUYERS MARKET SELLERS TRANSMISSION CUSTOMERS Spt Market Energy Regulatin Operating Reserves Transmissin Cngestin Transmissin Lsses Emergency Energy Meter Recnciliatin Unscheduled Transmissin Service Capacity Credit Market Financial Transmissin Rights Auctin Revenue Rights Exhibit 1: Types f PJM Services The PJM Energy Market accunting is designed t perate n a balanced basis. That is, the ttal amunt f the charges equals the ttal amunt f the credits; there are n residual funds. With certain exceptins, each f the services als perates n a balanced basis. That is, the charges and credits fr a particular service, such as regulatin, ffset each ther exactly. In certain cases, charges in excess f credits, r vice versa, in ne service are used t ffset the csts f prviding anther service. 1.2 Accunting Input Data At the end f each perating hur, PJM cllects infrmatin regarding actual peratins during the hur. This infrmatin is recrded either by the PJM dispatchers r by autmated systems. The market accunting prcesses use this infrmatin as input data. Other accunting input data is prvided frm varius systems and databases. This infrmatin includes data describing PJM Members installed generating resurces, scheduling infrmatin fr PJM Members transactins, and Transmissin System parameters, such as lss factrs determined annually by PJM system planning staff. The market accunting prcesses use this infrmatin as described in the fllwing sectins f this manual PJM Revisin 754, Effective Date: 07/01/2016

13 Manual 28: Operating Agreement Accunting Sectin 2: Interface Pricing Sectin 2: Interface Pricing Welcme t the Interface Pricing sectin f the PJM Manual fr Operating Agreement Accunting. In this sectin, yu will find the fllwing infrmatin: An verview f the interface pricing settlements business rules (see Business Rules fr Interface Pricing ). 2.1 Business Rules fr Interface Pricing Market Participants have the ability t transact energy in-t, ut-f r thrugh the PJM RTO (see OASIS Reginal Transmissin and Energy Scheduling Practices fr details n the PJM prcesses fr facilitating the transactin and scheduling prcess). The surce and sink pricing assignments fr these external transactins are determined using mappings that use a cmbinatin f the ExSchedule system surce and sink selectin, the NERC Tag, and the OASIS reservatin. Fr Day-ahead exprt (ut-f PJM RTO) transactins where the surce and sink n the OASIS are the same, the surce and sink price is assigned based n the Exprt Pricing Pint selected by the custmer in the ExSchedule system. Where the surce and sink are nt the same, the surce price is assigned based n the surce f the OASIS reservatin being used, while the sink price is the Exprt Pricing Pint selected by the custmer in the ExSchedule system. Fr Real-time exprt (ut-f PJM RTO) transactins where the surce and sink n the OASIS are the same, the surce and sink price is assigned based n the sink f the NERC Tag and the applicable interface pricing mapping*. Where the surce and sink n the OASIS are nt the same, the surce price is assigned based n the surce f the OASIS reservatin being used, while the sink price is based n the sink f the NERC Tag and the applicable interface pricing mapping*. Fr Day-ahead imprt (in-t PJM RTO) transactins using a Spt-In OASIS reservatin, bth the surce and sink prices are based n the Imprt Pricing Pint selected by the custmer in the ExSchedule system. Fr Day-ahead imprt (in-t PJM RTO) transactins using an OASIS reservatin (ther than a Spt-In OASIS reservatin) where the surce and sink n the OASIS are the same, the surce and sink price is assigned based n the Imprt Pricing Pint selected by the custmer in the ExSchedule system. Where the surce and sink are nt the same, the surce price is based n the Imprt Pricing Pint selected by the custmer in the ExSchedule system, while the sink price is based n the sink f the OASIS reservatin being used. PJM 2016 Revisin 754, Effective Date: 07/01/2016 8

14 Manual 28: Operating Agreement Accunting Sectin 2: Interface Pricing Fr Real-time imprt (in-t PJM RTO) transactins using a Spt-In OASIS reservatin, bth the surce and sink prices are based n the surce f the NERC Tag and the applicable interface pricing mapping*. Fr Real-time imprt (in-t PJM RTO) transactins using an OASIS reservatin (ther than a Spt-In OASIS reservatin) where the surce and sink n the OASIS are the same, the surce and sink price is assigned based n the surce f the NERC tag and the applicable interface pricing mapping*. Where the surce and sink are nt the same, the surce price is based n the surce f NERC tag and the applicable interface pricing mapping*, while the sink price is based n the sink f the OASIS reservatin being used. Fr Day-ahead wheel (thrugh PJM RTO) transactins, the surce price is based n the Imprt Pricing Pint selected by the custmer in the ExSchedule system, while the sink price is based n the Exprt Pricing Pint selected by the custmer in the ExSchedule system. Fr Real-time wheel (thrugh PJM RTO) transactins, the surce price is based n the surce f the NERC tag and the applicable interface pricing mapping*, while the sink price is based n the sink f the NERC tag and the applicable interface pricing mapping*. * The Pricing Pint Guide which cntains the cmplete listing f the Mapping f External Balancing Authrities t Interface Pricing Pints can be fund n the PJM website at During any hur in which any entity makes any purchases frm ther external areas utside f such area r sub-area (ther than delivery f external designated Netwrk Resurces r such ther exceptins specifically dcumented fr such area r sub-area) at the same time that energy sales int PJM are being made, pricing will revert t the applicable Imprt r Exprt Pricing Pint that wuld therwise be assigned t such external area r sub-area. There are currently n exceptins t this prcess. During any hur in which any entity purchases energy frm PJM fr delivery int such area r sub-area while sales frm such area t ther external areas are simultaneusly implemented (subject t any exceptins specifically dcumented fr such area r sub-area in the PJM Manuals), pricing will revert t the applicable Imprt r Exprt Pricing Pint that wuld therwise be assigned t such external area r sub-area. There are currently n exceptins t this prcess. Beginning May 3, 2009 the fllwing interface pricing rules fr NERC Tags which surce r sink in the CPLE, DUKE, r NCMPA1 were effective. Real-time transactins between PJM and the CPLE, DUKE, and NCMPA1 cntrl areas are reviewed hurly t determine if the transactins qualify fr the DUK/CPLE/NCMPA1 imprt r exprt price. PJM Revisin 754, Effective Date: 07/01/2016

15 Manual 28: Operating Agreement Accunting Sectin 2: Interface Pricing Each hur, Real-time telemetry frm the CPLE, DUKE, and NCMPA1 cntrl areas is used t validate whether the NERC Tag between the CPLE/DUK/NCMPA1 cntrl areas and PJM cntrl area shuld qualify fr the given CPLE/DUK/NCMPA1 imprt r exprt price. If transactins d nt qualify fr the CPLE/DUK/NCMPA1 imprt r exprt price, the SOUTHIMP r SOUTHEXP prices are used. The interface price definitins fr CPLE, DUKE, and NCMPA1 can be fund n the PJM website at PJM Revisin 754, Effective Date: 07/01/2016

16 Manual 28: Operating Agreement Accunting Sectin 3: Spt Market Energy Accunting Sectin 3: Spt Market Energy Accunting Welcme t the Spt Market Energy Accunting sectin f the PJM Manual fr Operating Agreement Accunting. In this sectin, yu will find the fllwing infrmatin: An verview f the spt market accunting (see Spt Market Accunting Overview ). Hw PJM determines spt market net interchange fr each PJM Member (see Calculating Spt Market Interchange ). Hw charges fr spt market energy are calculated fr market buyers and sellers (see Interchange Market Buyers Charges ). Hw spt market energy charge recnciliatins are calculated (see Recnciliatin fr Spt Market Charges ). 3.1 Spt Market Accunting Overview The PJM Energy Market is the reginal cmpetitive market that is administered by PJM fr the purchase and sale f Spt Market energy. PJM Members buy and sell energy frm the spt market based n metered and scheduled use. PJM schedules and dispatches generatin n the basis f least-cst, security cnstrained dispatch and the bids and perating characteristics ffered by the sellers int PJM. PJM dispatches generatin t meet the PJM Member buyers requirements, as well as the requirements fr Ancillary Services. PJM is respnsible fr administering the Day-ahead and Balancing PJM Energy Markets, including, perfrming the fllwing accunting-related functins: accunting fr transactins rendering bills t buyers and sellers receiving payments frm and dispersing payments t buyers and sellers The Spt Market facilitates the trading f energy by PJM Members. The Spt Market clears hurly at the apprpriate day-ahead and real-time System Energy Price cmpnent f LMP. PJM calculates a day-ahead and a real-time System Energy Price each hur fr the entire PJM RTO, as specified in Sectin 2 f this PJM Manual. Energy delivered t the Spt Market is cmpensated at the System Energy Price fr that hur. Energy purchased frm the Spt Market is charged at the System Energy Price fr that hur. PJM 2016 Revisin 754, Effective Date: 07/01/

17 Manual 28: Operating Agreement Accunting Sectin 3: Spt Market Energy Accunting 3.2 Business Rules fr InSchedule and Pwer Meter Data Submissins Unilateral Crrectins t InSchedule Lad Respnsibility Data Fr lad respnsibility InSchedule data submitted by the LSE (as ppsed t the typical EDC submittal), EDCs need mre certainty f accurate and final data prir t the PJM InSchedule data submissin deadline in rder fr them t accurately calculate lad respnsibilities fr all ther LSEs in their territry by the InSchedule deadline. These LSEs must submit their data tw hurs prir t the established PJM InSchedule data submissin deadlines. If this des nt ccur, EDCs shall be allwed t PJM with the LSE's lad respnsibility data (with a cpy prvided t the applicable LSE) s that PJM can enter that EDC-calculated data prir t the InSchedule data submissin deadline as the fficial data t be used fr settlements. Any discrepancies remaining after the InSchedule deadline may be reslved via the EDC lad recnciliatin data submissins. Unilateral Crrectins t Pwer Meter Generatin Data Fr generatin MWh data submitted by the generatin wner (as ppsed t the EDC submittal), EDCs need mre certainty f accurate and final Pwer Meter data prir t the PJM InSchedule data submissin deadline in rder fr them t accurately calculate lad respnsibilities fr all ther LSEs in their territry by the InSchedule deadline. If grss data errrs in the submitted data are identified by the EDC (and PJM cncurs with the findings), EDCs shall be allwed t PJM with the crrect generatr data (with a cpy prvided t the applicable generatin wner) s that PJM can enter that data prir t the Pwer Meter data submissin deadline as the fficial data t be used fr settlements. Any discrepancies remaining after the Pwer Meter deadline may be reslved via mnthly Meter Errr Crrectin data submissins. 3.3 Calculating Spt Market Interchange Net interchange fr PJM Members is the difference between a participant s ttal energy resurces (including bth generatin and purchased energy) and its energy demand (including bth lad and energy sale bligatins). PJM Revisin 754, Effective Date: 07/01/2016

18 Manual 28: Operating Agreement Accunting Sectin 3: Spt Market Energy Accunting Fr each hur, PJM calculates each market participant s hurly day-ahead and real-time net spt market energy interchange. Day-ahead net interchange equals the sum f a market participant s demand and decrement bids cleared in the day-ahead market, less any accepted generatin and increment ffers cleared in the day-ahead market, and is adjusted fr all day-ahead energy transactins in which the custmer accunt is invlved. Real-time net interchange cnsists f a market participant s hurly metered tie line flws (if applicable),less any wnership f metered generatin, and is adjusted fr all real-time energy transactins (including any lad bligatins [de-rated fr transmissin lsses] r generatin mdeled by InSchedule transactins, and including any InSchedule transactins that were priced day-ahead) in which the custmer accunt is invlved. 3.4 Transmissin Lss De-ratin Factrs Because PJM emplys a Marginal Lss methdlgy, energy market-related settlements need t use lad respnsibilities de-rated fr transmissin lsses. This is due t the fact that the LMPs include a lss price cmpnent. In rder t remve all transmissin lsses, as represented in PJM s netwrk system mdel, hurly EDC lss de-ratin factrs are applied t the ttal EDC lad and t individual LSE lad respnsibilities. In general, these lss deratin factrs represent ttal transmissin lsses divided by ttal lad including lsses. (Nte that these are different frm traditinal lss factrs which reflect ttal lsses divided by lad excluding lsses.) Each hur, PJM calculates a lss de-ratin factr fr each EDC that has their tie lines fully metered directly t PJM. Fr nn-pjm Mid-Atlantic EDCs (that d nt receive an allcatin f the jintly-wned PJM 500 kv transmissin system lsses), the calculatin is as fllws: EDC ttal state-estimated Lss MWh / EDC ttal revenue-metered lad MWh including all lsses Fr PJM Mid-Atlantic EDCs (that d receive an allcatin f the jintly-wned PJM 500 kv transmissin system lsses), the calculatin is as fllws: (EDC ttal state-estimated nn-500kv Lss MWh + EDC revenue-metered 500kV Lss Allcatin MWh) / (EDC ttal revenue-metered lad MWh including all nn-500kv lsses + EDC revenuemetered 500kV Lss Allcatin MWh) These EDC hurly lss de-ratin factrs are applied t the LSE lad respnsibility InSchedule MWh quantities (which are inclusive f all lsses) that are carved-ut f the applicable EDC s ttal lad, as well as applied t any residual lad respnsibility remaining with the EDCs, as fllws: Lss De-rated Lad MWh = (1 EDC Lss De-ratin Factr) x InScheduled, r Revenue-Metered, Lad Respnsibility MWh 3.5 State-estimated vs. Revenue-metered Energy Quantities Real-time generatin MWh are initially determined by the PJM State Estimatr, hwever, they are replaced by revenue meter data, if the equivalent revenue meter values are available via PJM Pwer Meter. The ttal lad actually served at each lad bus is initially determined by the State Estimatr. Fr each Electric Distributin Cmpany (EDC) that reprts hurly net energy flws frm all PJM Revisin 754, Effective Date: 07/01/2016

19 Manual 28: Operating Agreement Accunting Sectin 3: Spt Market Energy Accunting metered tie lines t PJM via Pwer Meter and fr which revenue meter data fr the hurly net energy delivered by all generatrs within that EDC s territry reprt revenue meter data fr their hurly net energy delivered via Pwer Meter, fr the purpses f energy market accunting the EDC is classified as a fully metered EDC. tthe ttal fully metered EDC revenue-metered lad is calculated as the sum f the net imprt energy flws reprted by their tie revenue meters plus the net generatin reprted by the generatr revenue meters. The amunt f lad at each f such fully metered EDC s lad buses calculated by the PJM State Estimatr is then adjusted, in prprtin t its share f the ttal lad f that fully metered EDC, in rder that the ttal amunt f lad acrss all f the fully metered EDC s lad buses matches its ttal revenue meter calculated lad. PJM will assess and trend quarterly the degree f net energy injectins at lad buses mdeled in the PJM netwrk system mdel (i.e., reverse pwer flws) in rder t detect and crrect and mdeling issues and t identify any generatin in excess f lad that appears at a lad bus. PJM will determine and use a relevant net energy injectin threshld at a lad bus that may impact LMP and/r lad accuracy. Fr lad buses with persistent negative MWh, PJM will wrk with the applicable EDC t determine if the cause is subptimal mdeling r actual reverse pwer flws frm distributin-level system(s) t the PJM transmissin system, r simply nrmal results due t state estimatin. Prperly mdeled lad buses with cnsistent excess energy injectins due t distributin-level reverse pwer flws shuld be mdeled as generatin buses in the PJM netwrk system mdel at the lad bus lcatin in rder t minimize the amunt f negative MWh bserved at thse lad buses. 3.6 Residual Metered Lad Fr settlements purpses, lad within a fully metered EDC s territry is assigned t nnmetered entities by submitting hurly lad bligatin data in the InSchedule system. Data submitted in the InSchedule system includes the names f the LSE respnsible fr serving the lad and the EDC in whse territry the lad is lcated, the number f megawatts f lad assigned t the LSE fr each hur, the aggregate at which lad is t be priced, and the start and end dates fr the lad cntract. During the settlements prcess, lad assigned t an LSE at a specified aggregate is further assigned t individual lad buses based n the aggregate definitin, which specifies the percentage f the verall aggregate that each bus represents, t identify the LSE s hurly megawatts f lad at each bus. Ndal priced lad is defined as any hurly lad submitted under an InSchedule cntract that is priced at an aggregate cmprised f a single identifiable bus r set f identifiable buses at which the lad is lcated. A detailed descriptin f the ndal pricing settlements business rules can be fund in Manual 27 Sectin 5.6. The hurly ndal lad amunts submitted in InSchedule are multiplied by the ndal aggregates definitins t calculate the ndal priced lad at each bus. Residual metered lad at each bus is defined as the bus lad (adjusted revenue meter calculated lad as calculated in Sectin 3.5) less the ndal priced lad at each bus. 3.7 Residual Metered Lad Aggregate Definitins Residual Metered Lad aggregates mre accurately reflect the cmpsitin f nn-ndal priced lad in fully metered EDC territries. Effective June , Residual Metered Lad aggregates are the default fr which real-time lad is settled if it has nt elected t settle at a ndal lad aggregate. Upn implementatin f residual metered lad pricing n June , physical zne pricing fr real-time lad will n lnger be available. PJM Revisin 754, Effective Date: 07/01/2016

20 Manual 28: Operating Agreement Accunting Sectin 3: Spt Market Energy Accunting Residual Metered Lad aggregate distributin factrs are determined by dividing the residual metered lad fr each bus in the fully metered EDC territry by the ttal residual metered lad fr the fully metered EDC territry. Residual Metered Lad aggregate prices are defined by weighting each lad bus LMP by that bus residual metered lad aggregate distributin factr. Fr the majrity f PJM transmissin znes, the EDC territry is the same as the physical transmissin zne. In cases where the fully metered EDC s territry differs frm the physical transmissin zne, residual metered lad aggregates exist fr each fully metered EDC territry within the transmissin zne. Residual Metered Lad aggregate cngestin prices, lss prices, and ttal LMPs are calculated using the Residual Metered Lad aggregate distributin factrs. Factrs fr each Residual Metered Lad aggregate sum t exactly 100%. Residual Metered Lad aggregate definitins used fr the calculatin f Day-ahead LMPs, preliminary and final Real-time LMPs, and FTRs/ARRs are defined as fllws: Day-ahead Residual Metered Lad aggregate distributin factrs default t the final real-time distributin factrs fr the Residual Metered Lad aggregate at 8:00 a.m. ne week prir t the Operating Day (i.e., if next Operating Day is Mnday, the default distributin is frm 8:00 a.m. n Mnday f the previus week). Cnsistent with physical transmissin znes, the definitin applies t all hurs in the day. Preliminary 5 minute real-time Residual Metered Lad aggregate LMPs are calculated using the same Residual Metered Lad aggregate distributin factrs as used in the Day-ahead market fr the Operating Day. Final hurly real-time Residual Metered Lad aggregate distributin factrs are calculated using InSchedule-submitted ndal lad MWh. Residual Metered Lad aggregate distributin factrs fr ARR/FTR purpses are fixed fr the planning perid (June 1st May 31st). Cnsistent with physical transmissin znes, the residual metered lad aggregate distributins fr FTRs/ARRs are initially determined using the hurly individual residual lad bus cntributin t the ttal residual lad at the time f the previus year s PJM annual peak. In cases where there are new ndal lad requests pursuant t the ndal pricing rules in Manual 27, the initial residual metered lad aggregate definitin fr FTRs/ARRs are adjusted by the LSE s ndal lad peak distributin. LSEs mving t ndal lad settlement fr the upcming PJM planning year will be required t submit a peak lad at the time f the PJM annual peak frm the previus year per the ndal pricing rules in Manual 27. This value in cnjunctin with the distributin percentages currently required accrding t the ndal pricing rules in Manual 27 will be used t determine the final residual metered lad aggregate distributin. 3.8 Spt Market Energy Charges Market participant custmer accunts incur +/- charges fr Day-ahead Spt Market Energy based n their day-ahead net interchange. If a market participant s day-ahead net interchange is a net purchase f day-ahead spt market energy in an hur (a psitive PJM Revisin 754, Effective Date: 07/01/2016

21 Manual 28: Operating Agreement Accunting Sectin 3: Spt Market Energy Accunting value), they are charged fr purchasing their net interchange fr that hur at the hur s dayahead System Energy Price. If a market participant s day-ahead net interchange is a net sale f day-ahead spt market energy in an hur (a negative value), they are prvided with a negative charge fr selling their net interchange fr that hur at the hur s day-ahead System Energy Price. Market participant custmer accunts incur +/- charges fr Balancing Spt Market Energy based n the deviatin between their real-time net interchange and their day-ahead net interchange. Hurly balancing spt market deviatins are calculated by subtracting the hur s day-ahead net interchange frm the hur s real-time net interchange. If a market participant s balancing spt market deviatin is a net purchase f real-time spt market energy in an hur (a psitive value), they are charged fr purchasing their balancing deviatin fr that hur at the hur s real-time System Energy Price. If a market participant s balancing spt market deviatin is a net sale f real-time spt market energy in an hur (a negative value), they are prvided with a negative charge fr selling their balancing deviatin fr that hur at the hur s real-time System Energy Price. PJM Actins: PJM accunting prcess retrieves the fllwing infrmatin: Each market participant s hurly day-ahead and real-time net interchange (MWh) The hurly RTO system-wide System Energy Price ($/MWh) PJM calculates the Day-ahead Spt Market Energy charge (psitive r negative) fr each hur fr each Market Participant as: Day-ahead Spt Market Energy Charge = (Day-ahead Net Interchange) * (Day-ahead System Energy Price) PJM calculates the Balancing Spt Market Energy charge (psitive r negative) fr each hur fr each Market Participant as: Balancing Spt Market Energy Charge = (Real-time Net Interchange Day-ahead Net Interchange) * (Real-time System Energy Price) 3.9 Recnciliatin fr Spt Market Energy Charges PJM will calculate recnciled Spt Market Energy charges fr EDCs and Retail Lad Aggregatrs (a.k.a. Electric Generatin Suppliers) fr past mnthly billings n a tw mnth lag. The recnciliatin kwh data must be supplied t PJM by the EDCs n later than the last day f the billing mnth that is tw mnths after the riginal billing mnth. Fr example, all recnciliatin data fr January must be submitted by March 31 at 23:59. The recnciliatin kwh data represents the difference between the scheduled Retail Lad Respnsibility r Whlesale Lad Respnsibility InSchedule (in MWh) and the actual usage based n metered data. This hurly kwh data must be reprted separately fr each applicable InSchedule cntract. PJM Revisin 754, Effective Date: 07/01/2016

22 Manual 28: Operating Agreement Accunting Sectin 3: Spt Market Energy Accunting PJM calculates the Spt Market Energy charge recnciliatins by multiplying the kwh data (de-rated fr transmissin lsses) by the real-time PJM System Energy Price fr that hur. These charge recnciliatins are then ttaled fr the mnth fr each EDC r Retail Lad Aggregatr. Nte that the recnciliatin fr Spt Market charges fr a mnth may be either a psitive r a negative value, and may even be such that the recnciled lad respnsibility MWh results in a negative lad quantity. PJM Revisin 754, Effective Date: 07/01/2016

23 Manual 28: Operating Agreement Accunting Sectin 4: Regulatin Accunting Sectin 4: Regulatin Accunting Welcme t the Regulatin Accunting sectin f the PJM Manual fr Operating Agreement Accunting. In this sectin, yu will find the fllwing infrmatin: A descriptin f hw Regulatin is prvided and accunted fr in the PJM Regulatin Markets (see Regulatin Accunting Overview ). Hw credits are calculated fr prviders f Regulatin (see Regulatin Credits ). Hw charges are calculated fr users f Regulatin (see Regulatin Charges ). Hw regulatin charge recnciliatins are calculated (see Recnciliatin fr Regulatin Charges ). 4.1 Regulatin Accunting Overview Regulatin is necessary t prvide fr the cntinuus balancing f resurces (generatin and interchange) with lad and fr maintaining scheduled Intercnnectin frequency at 60 cycles per secnd (60 Hz). PJM cmmits n-line resurces whse utput is raised r lwered as necessary t fllw mment-t-mment changes in lad. Regulatin is predminantly achieved using autmatic generatin cntrl equipment. Regulating resurces include bth generatrs and demand side respnse resurces. PJM perates the Regulatin Market where the Regulatin Market Clearing Prices are determined based n Regulatin ffers and pprtunity csts. PJM assigns the mst ecnmically efficient set f regulating resurces available in real-time t separately meet the applicable NERC regins regulatin zne requirements. Fr mre detailed infrmatin abut hw regulating requirements are develped and hw Regulatin is assigned, see the PJM Manual fr Balancing Operatins (M-12). Fr an verview f the Regulatin Market, see the PJM Manual fr Energy & Ancillary Services Market Operatins (M-11). Each PJM lad serving entity has an hurly Regulatin bligatin equal t their regulatin zne real-time lad rati share f the applicable Regulatin requirement fr the hur, prrated t reflect the ttal amunt f Regulatin actually supplied. A market participant s Regulatin bligatin can be satisfied frm their wn resurces capable f prviding Regulatin, by cntractual arrangements with ther Market Participants capable f prviding Regulatin, and/r by purchases f Regulatin frm the PJM Regulatin Market. Resurce wners supplying self-scheduled Regulatin are credited based n the hurly Regulatin Market Capability Clearing Price (RMCCP) and Regulatin Market Perfrmance Clearing Price (RMPCP) fr each MW f Regulatin supplied, with cnsideratin f the resurce s Regulatin perfrmance, and where applicable, the rati between the requested mileage fr the regulatin dispatch signal assigned t the resurce and the mileage fr the traditinal regulatin signal (mileage rati). Resurce wners supplying pl-scheduled Regulatin are credited fr each Regulatin MW at the higher f the hurly Regulatin PJM 2016 Revisin 754, Effective Date: 07/01/

24 Manual 28: Operating Agreement Accunting Sectin 4: Regulatin Accunting Market Perfrmance and Capability Clearing Prices, with cnsideratin f the resurce s Regulatin perfrmance, and where applicable the mileage rati, r their Regulatin ffer price (plus real-time pprtunity cst including shulder hurs lst pprtunity csts, fr generating resurces). Regulatin buyers are charged the hurly Regulatin Market Capability Clearing Price (RMCCP) and Regulatin Market Perfrmance Clearing Price (RMPCP) plus their percentage share f any Regulatin prvider s unrecvered csts ver and abve their ttal Regulatin Clearing Price credits. 4.2 Regulatin Credits Each resurce supplying pl-scheduled Regulatin is credited at the higher f the hurly RMCCP and RMPCP with cnsideratin f the resurce s Regulatin perfrmance, and where applicable, the mileage rati r its Regulatin ffer price (plus real-time pprtunity cst including shulder hurs lst pprtunity csts, fr generating resurces). A resurce supplying self-scheduled Regulatin is credited based n the hurly RMCCP and RMPCP with cnsideratin f the resurce s Regulatin perfrmance, and where applicable, the mileage rati. Regulatin credits fr jint-wned generatrs supplying Regulatin are allcated t the wners based n their wnership shares. Any resurce with an hurly perfrmance scre belw the applicable threshld fr minimum hurly perfrmance in Manual 11 Sectin will receive zer regulatin credits fr that market hur. PJM Actins: Frm the Regulatin lg, PJM identifies each resurce that supplied Regulatin (bth pl-scheduled and self-scheduled) with an hurly perfrmance scre greater than r equal t the applicable threshld fr minimum hurly perfrmance in Manual 11 Sectin during an hur. PJM calculates the hurly Regulatin RMCCP Credit fr each applicable regulating resurce by multiplying each increment f such Regulatin in megawatts during the hur by the Regulatin Market Capability Clearing Price (RMCCP) and the resurce s actual perfrmance scre fr that hur. Regulatin RMCCP Credit = Hurly-integrated Regulatin MW x Actual Perfrmance Scre x RMCCP PJM calculates the hurly Regulatin RMPCP Credit fr each applicable regulating resurce by multiplying each increment f such Regulatin in megawatts during the hur by the Regulatin Market Perfrmance Clearing Price (RMPCP) fr that hur, the applicable mileage rati, and the resurce s actual perfrmance scre fr that hur. Regulatin RMPCP Credit = Hurly-integrated Regulatin MW x Actual Perfrmance Scre x Mileage Rati x RMPCP PJM Revisin 754, Effective Date: 07/01/2016

25 Manual 28: Operating Agreement Accunting Sectin 4: Regulatin Accunting PJM calculates the ttal Regulatin Clearing Price Credit as the Regulatin RMCCP Credit plus the Regulatin RMPCP Credit fr that hur. Regulatin Clearing Price Credit = Regulatin RMCCP Credit + Regulatin RMPCP Credit The lst pprtunity csts calculated as part f the real-time pricing algrithm as adjusted by the applicable perfrmance scre and unit-specific benefits factr will be used in the settlement calculatin fr intra-hur lst pprtunity csts. PJM calculates shulder hurs lst pprtunity csts incurred by each generatr prviding pl-scheduled Regulatin fr the preceding and fllwing hur. Nte that the energy ffer referred t belw is the generatr`s incremental energy ffer curve that is assciated with the price-based r cst-based schedule used in the real-time dispatch f the unit. CT 1 and hydr generatrs are nt eligible fr shulder hur lst pprtunity csts. A generatr is eligible fr preceding shulder hur lst pprtunity csts when: it is nline the hur prir t regulating; the Regulatin assignment starts at the tp f the hur; it is nt regulating during the preceding hur; and the LMP Desired frm the prir hur is nt already within the regulatin hur regulatin limits. A generatr is eligible fr fllwing shulder hur lst pprtunity csts when: it is nline the hur fllwing regulating; the Regulatin assignment ends at the tp f the fllwing hur; it is nt regulating during the fllwing hur; and the LMP Desired frm the fllwing hur is nt already within the regulatin hur regulatin limits. In the preceding hur f regulatin, if a generatr must reduce its utput t prvide regulatin and freges revenues, its shulder hur lst pprtunity cst equals the amunt f its energy ffer at the preceding hur ecnmically desired level in excess f its energy ffer at its Regulatin setpint at the start f the regulatin hur adjusted by the percentage f the shulder hur during which the reductin in utput ccurred. In the preceding hur f regulatin, if a generatr must increase its utput t prvide regulatin and incurs additinal csts, its shulder hur lst pprtunity cst equals the amunt f its energy ffer at its Regulatin setpint at the start f the regulating hur in excess f its energy ffer at the preceding hur ecnmically desired level adjusted by the percentage f the shulder hur during which the increase in utput ccurred. 1 Nte: Unless therwise specified, diesel unit types are treated as CTs in settlements based n their similar perating characteristics. PJM Revisin 754, Effective Date: 07/01/2016

26 Manual 28: Operating Agreement Accunting Sectin 4: Regulatin Accunting In the fllwing hur f regulatin, if a generatr increased its utput t prvide regulatin and incurs additinal csts, its shulder hur lst pprtunity cst equals the amunt f its energy ffer at its Regulatin setpint at the end f the regulating hur in excess f its energy ffer at the fllwing hur ecnmically desired level adjusted by the percentage f the shulder hur during which the decrease in utput ccurred. In the fllwing hur f regulatin, if a generatr reduced its utput t prvide regulatin and freges revenues, its shulder hur lst pprtunity cst equals the amunt f its energy ffer at the fllwing hur ecnmically desired level in excess f its energy ffer at its Regulatin setpint at the end f the regulating hur adjusted by the percentage f the shulder hur during which the increase in utput ccurred The percentage f the shulder hur in which the resurce wuld have t perate unecnmically is determined by dividing the reductin r increase in utput by the resurce s submitted ramp rate. If the ecnmically desired level, LMP desired MW, is less than r equal t the regulatin lw limit in the hur the unit regulated, the regulatin set pint equals the regulatin lw limit plus the regulatin assigned MW in the hur the unit regulated. If the LMP desired MW is greater than r equal t the regulatin high limit in the hur the unit regulated, the regulatin set pint equals the regulatin high limit minus the regulatin assigned MW in the hur the unit regulated. The regulatin MW at the beginning f the hur is used when calculating shulder hur lst pprtunity csts in the preceding shulder hur while the regulatin MW at the end f the hur is used when calculating shulder hur lst pprtunity csts in the fllwing shulder hur. Since hydr units perate n a schedule and d nt have an energy bid, lst pprtunity csts fr these units are calculated using the average f the real-time LMP at the hydr unit bus fr the apprpriate n peak ( ) r ff-peak ( , ) perid, excluding thse hurs during which all available units at the hydr plant were perating. During thse hurs when a hydr unit is in spill, the average f the real-time LMP value is set t zer such that the lst pprtunity cst is equal t (i) the regulatin setpint (biased t reflect the actual regulatin signal and adjusted by the applicable perfrmance scre and benefits factr) multiplied by (ii) the full value f the real-time LMP at the generatr bus. If a hydr unit is cmmitted day-ahead with MW greater than zer, the lst pprtunity cst is equal t (i) the regulatin setpint (biased t reflect the actual regulatin signal and adjusted by the applicable perfrmance scre and benefits factr) multiplied by (ii) the difference between the real-time LMP at the generatr bus and the average real-time LMP (calculated as stated abve). If this average PJM Revisin 754, Effective Date: 07/01/2016

27 Manual 28: Operating Agreement Accunting Sectin 4: Regulatin Accunting real-time LMP value is higher than the real-time LMP at the generatr bus, the lst pprtunity cst is zer. If a hydr unit is nt cmmitted day-ahead with MW greater than zer, the lst pprtunity cst is equal t (i) the regulatin setpint (biased t reflect the actual regulatin signal and adjusted by the applicable perfrmance scre and benefits factr) multiplied by (ii) the difference between the average real-time LMP (calculated as stated abve) minus the real-time LMP at the generatr bus. If the actual real-time LMP is higher than the average real-time LMP, the lst pprtunity cst is zer. Additinal details n hydr units in the Regulatin Market can be fund in Manual 11: Energy and Ancillary Services Market Operatins. Fr each resurce prviding Regulatin at the directin f PJM, the sum f its Regulatin ffer price (and lst pprtunity csts, including shulder hurs lst pprtunity csts, fr generatrs) is cmpared t its hurly Regulatin Clearing Price credits. If the resurce s pl-scheduled Regulatin ffer price (plus lst pprtunity csts, including shulder hurs lst pprtunity csts, fr generatrs) is greater than its Regulatin Clearing Price credit fr that hur, then the resurce receives an additinal credit equal t the amunt that its Regulatin ffer price (plus lst pprtunity csts, including shulder hurs lst pprtunity csts, fr generatrs) is in excess f its Regulatin Clearing Price credit. Lst Opprtunity Cst Credit = (Regulatin Offer + Lst Opprtunity Cst, including Shulder Hurs Lst Opprtunity Cst, if applicable) Regulatin Clearing Price Credit, nly if quantity is psitive PJM sums the Regulatin credits (bth Regulatin Clearing Price credits and Lst Opprtunity Cst credits) t determine the ttal hurly credit fr each Regulatin market participant, taking int accunt jint-wnership f regulating generatrs. 4.3 Regulatin Charges Each PJM lad serving entity, r ther Regulatin buyer, is charged at the hurly Regulatin Market Capability Clearing Price (RMCCP) and the Regulatin Market Perfrmance Clearing Price (RMPCP) fr the amunt f Regulatin purchased t meet their hurly bligatin. Hurly Regulatin bligatins equal their real-time lad rati share f the ttal amunt f Regulatin supplied excluding the mileage rati cmpnent by PJM that hur, adjusted fr any bilateral Regulatin transactins. Participants are als charged at the hurly RMPCP fr the mileage rati cmpnent f the regulatin supplied based n their hurly adjusted bligatin share. In additin, net purchasers f Regulatin in an hur are als charged a prprtinate share f any lst pprtunity credits paid t regulating generatrs fr unrecvered csts ver and abve their Regulatin Clearing Price credits. PJM Revisin 754, Effective Date: 07/01/2016