PJM Overview. Jonathon Monken System Resilience and Strategic Coordination PJM Interconnection. LeRoy Bunyon Business Continuity PJM Interconnection

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1 PJM Overview Jonathon Monken System Resilience and Strategic Coordination PJM Interconnection LeRoy Bunyon Business Continuity PJM Interconnection

2 PJM Vision Statement To be the electric industry leader today and tomorrow in reliable operations, efficient wholesale markets, and infrastructure development. Independent Governance Wholesale Electric Markets Regional Reliability Market Monitoring Information Resource Transmission Planning 2

3 PJM s Role as a Regional Transmission Organization 3

4 Reliability Grid Operations Supply/Demand Balance Transmission monitoring 1 PJM Primary Focus Regional Planning 15-Year Outlook 2 Market Operation Energy Capacity Ancillary Services 3 4

5 PJM as a Regional Transmission Organization PJM as a Regional Transmission Organization works to coordinate and direct the flow of electricity to keep the lights on for 65 million people in 13 states and the District of Columbia. PJM does not own power lines or generators. Instead, it is a neutral, regulated organization that directs the operation of power lines and generators for many different owners. Operating the electric system is a balancing act that requires continuous monitoring of the system. PJM to maintain safe and reliable service while meeting customer needs for electricity when and where it s needed, PJM reacts instantly to changes in demand, equipment problems, weather conditions and other factors. PJM coordinates the grid and administer the wholesale power market according to federal laws and regulations as well as within the requirements of each state which it serves. 5

6 PJM as Part of the Eastern Interconnection Key Statistics Member companies 1,040+ Millions of people served 65 Peak load in megawatts 165,492 MW of generating capacity 178,563 Miles of transmission lines 84, GWh of annual energy 773,522 Generation sources 1,379 Square miles of territory 243,417 States 27% served of generation in Eastern Interconnection 13 + DC 28% of load in Eastern Interconnection 20% of transmission assets in Eastern Interconnection 21% of U.S. GDP produced in PJM As of 2/2018 6

7 PJM s Role Generation (supply) Regional Transmission Organization (RTO) Load (demand) residential Transmission Owners (TO) industrial Transmission substation Electric Distribution Company (EDC) Distribution substation commercial 1. Ensures the reliability of the high-voltage electric power system 2. Coordinates and directs the operation of the region s transmission grid; 7

8 PJM Backbone Transmission 8

9 Security and Resilience is Paramount Cyber and physical security practices protect information, systems, facilities and the people within the PJM footprint PJM entrusted with critical member and market data Connected to nearly 1,000 members and 13 states + D.C. From reliability and efficiency to system resilience 9

10 How Is PJM Different from a Local Utility? PJM does: Maintain the big picture of the transmission system regardless of ownership Have, by agreement, operational control of the transmission system Operate as profit neutral Remain totally independent of all PJM members Coordinates maintenance of generation and transmission systems 10

11 How Is PJM Different from a Local Utility? PJM does NOT: Own any transmission or generation assets Function as a publicly traded company Take ownership of the energy on the system Perform the actual maintenance on generators or transmission systems Serve, directly, any end-use (retail) customers 11

12 Puerto Rico and Hurricane Maria (2017) from an Energy Sector Business Continuity Perspective June 14, 2018 Jonathon Monken System Resilience and Strategic Coordination PJM Interconnection LeRoy Bunyon Business Continuity PJM Interconnection

13 Department of Homeland Security - Critical Infrastructure Sectors There are 16 critical infrastructure sectors whose assets, systems, and networks, whether physical or virtual, are considered so vital to the United States that their incapacitation or destruction would have a debilitating effect on security, national economic security, national public health or safety, or any combination thereof. Chemical Commercial Facilities Communications Critical Manufacturing Dams Defense Industrial Base Emergency Services Energy Financial Services Food and Agriculture Government Facilities Healthcare and Public Health Information Technology Nuclear Reactors, Materials, and Waste Transportation Systems Water and Wastewater Systems 13

14 Resilience 14

15 Prevention Build security into the design Implement traditional controls Improve security controls Cyber Resiliency with Eyes Wide Open Collaboration Coordinate response plans Develop and maintain government relationships Leverage industry relationships Share best practices Resilience Focus on incident response Enhance scenario planning Plan and drill restoration scenarios 15

16 Business Continuity and Resilience 16

17 Maslow s Hierarchy of Needs (Business Perspective) Self Actualization Realization of an entities full potential As BC Professionals, we craft and maintain plans with leadership and subject matter experts to purposefully position ourselves to resiliently move up the hierarchy of needs after a disruptive event. Esteem Belonging Safety Physiological (basic needs) Well known respected brand Committed and Cohesive team Assurance of continued ability to meet basic needs, typically through proper planning and resource allocation. Supplies, Utilities, demand for services and goods, the resources to provide its products and services. 17

18 Business Impact Analysis and BCP Plans (2 nd and 3 rd levels of the Pyramid) The BIA identifies the quantitative (measurable) and qualitative (usually reputational) impact that could occur if a Department or Business Function (Process) were unable to operate for any reason (disruptive event). The BIA deliverables becomes the basis on which we prioritize our efforts in building an efficient Business Continuity Plan (BCP). o Recovery Time Objectives o Recovery Point Objectives o Critical Recovery Path (order) based upon RTOs, RPOs, and interdependencies. The definition of critical impact needs to be based upon something measured, proven, and dynamic enough to change as your company evolves. 18

19 The Island Power Grid: Before Landfall Population: 3.41 million (2016) Area: 3,515 sq. miles (9,104 km²) GDP: $ billion USD (2018)

20 Philadelphia, PA 20

21 September Category 5 Hurricane (Maria) The United States National Hurricane Center (NHC) considers a hurricane with sustained wind speeds greater than 155 mph on the Saffir Simpson scale to be Category 5. The National Hurricane Center considers sustained wind speeds to be those that occur over a one-minute period at 32.8 ft. above ground. Hurricane Maria on 09/19/2017 Source: The Naval Research Laboratory/ NOAA 21

22 PJM Backbone Transmission 12/

23 3 Transmission Loops 23

24 7 Primary Power Zones 990 KW 1439 KW Commonwealth of Puerto Rico Population: 3.41 million (2016) Area: 3,515 sq. miles (9,104 km²) GDP: $ billion USD (2018) 24

25 Generation Sources 5107 MW of installed capacity 70% of generation from just 5 facilities Generation facility to person ratio (1/190k vs 1/40k PJM) Heavy dependence on off-island fuel sources Coal Diesel Liquid Natural Gas (LNG) Residual Fuel Oil (RFO) 25

26 Puerto Rico Electric Power Authority Lionshare of Operating budget relates to fuel Reliable Transportation (logistical) Systems are Essential for fuel delivery. 26

27 Overall Business Continuity Planning Issues Risk Encountered Staff Unavailability (Essential and non-essential) Loss of Basic Government Services Loss of Critical infrastructures Loss of Critical Suppliers (Water, Food, Fuels Etc) Loss of Diversity of Networks and Communications Loss of Diversity of Power Loss of Diversity of Telecommunications Loss of Diversity of Water Services (Potable & Non-potable) Loss of Heating, Ventilation, and Air Conditioning (HVAC) Systems The loss of a critical vendors or supply routes negatively impacts Recovery Time and Recovery Objectives. According to FEMA, More than 63 million meals provided. 72 million liters of bottled water 7 million gallons of potable water 27

28 After Hurricane Landfall

29 What Makes the Difference? Transmission Damage 65%-70% of transmission towers damaged or destroyed 20+ consecutive towers on a single corridor 29

30 Irma (2017) vs Maria (2017) a Tale of Impacts Florida Puerto Rico 30

31 What Makes the Difference? Availability of Transportation Seaports and airports Road conditions Finite number of specialty vehicles on-island Heavy Reliance Upon Imported Fuel Sources 31

32 What Makes the Difference? Communications 90+ percent of cell towers down for more than two weeks All internet service providers (ISPs) out All Land mobile radio systems (LMRs) out SAT Phone ground station in Venzuela 32

33 The 2017 Hurricane Season The Erroneous Beliefs 1 It can t happen to us. 2 The systems we need will be available. 3 The islands had poorly designed systems so the lessons don t apply here. 33

34 Erroneous Belief #1 34

35 Erroneous Belief #2 35

36 Erroneous Belief #3 These are one in a life time storms? 36

37 Take a ways for BC Professionals on US mainland 1. Review your Risk Assessments and BIA to ensure that they address scenarios for extend loss of power and potable water 2. Ensure your Recovery and Response plans address: Loss of Power Loss of Telecommunications (Multiple Suppliers) Loss of Diversity of Potable & Non-potable Water Loss of Heating, Ventilation, and Air Conditioning (HVAC) Systems (Multiple Suppliers) Loss of Critical Assets and Networks (including Cyber Events) Loss of Critical Suppliers (Do you have agreements for priority service?) Loss of vital roadways into and exiting from your critical sites Include contact numbers for Cyber Security, FBI, Police, Fire, and EMS personnel etc. 37

38 Questions