Generation Interconnection Process. SWANA Spring Conference Atlantic City, NJ April 18, 2016

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1 Generation Process SWANA Spring Conference Atlantic City, NJ April 18,

2 PJM process is FERC Pro Forma Customer enters queue to sell output into PJM wholesale market (regardless of size) Other options may exist such as state jurisdictional interconnections and behind the meter installations Queues are open for a 6 month period - a queue is always open Injection rights are awarded and based on queue position and completion of milestone requirements Process utilizes Feasibility, System Impact, and Facilities Studies to evaluate a proposed project s impact to the grid Required system upgrades are based on NERC reliability criteria (N-1, etc) and are the responsibility of the Customer 2

3 QUEUE TIMELINE Queue J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D AB1 AB2 AC1 PJM Receives Queue Requests Feasibility Study Period Feas SIS If queue ends with 1 Feb Sep If queue ends with 2 Aug Mar 30 Day Review and Return by Customer System Impact Study Period 3

4 Timeline overview Queue open (6 months) Feasibility Study Report provided to Customer within 120 days of queue close Customer reviews report and returns Impact Study within 30 days Impact Study Report provided to Customer within 180 days Customer reviews report and returns Facilities Study (30 days) Facilities Study Report prepared (6 months for TO work) Customer reviews Facilities Study Report and executes (60 days) Remaining timeline defined by milestones, construction schedule Approximately 2 years from queue entry until tendered (assuming no delays) 4

5 Request Studies Feas Imp Fac Execution ISA/CSA/WMPA Implementation Commercial Operation Feasibility Study Required Deposit based on month and MW size Demonstrated site control Point of (Primary and Secondary) Study Conducted By PJM and Transmission Owner (TO) Results Gen & Load Deliverability DC analysis Attachment Facilities needed for interconnection Identify overloads and required upgrades Short Circuit Analysis 5

6 Request Studies Feas Imp Fac Execution ISA/CSA/WMPA Implementation Commercial Operation Impact Study Required Deposit based on MW size Initial Air Permit Application (N/A for solar/wind projects) System Impact Study Data Study Conducted By PJM and TO Results Gen & Load Deliverability AC Analysis Attachment Facilities needed for interconnection Stability Analysis Light Load Analysis Short Circuit Analysis Cost allocation for shared overloads 6

7 Request Studies Feas Imp Fac Execution ISA/CSA/WMPA Implementation Commercial Operation Facilities Study (Initial Engineering Review) Required Deposit based on MW size Completion 6 Months (estimated) Study Conducted By TO Results Conceptual Design (Detailed Design as appropriate) for: Attachment Facilities Network Upgrades Cost Estimates Engineering and Construction Schedule 7

8 Request Studies Feas Imp Fac Execution ISA/CSA/WMPA Implementation Commercial Operation Types Services (ISA) Used for FERC jurisdictional interconnections Establishes milestones, awards Capacity Injection Rights (CIRs) and requires Security Wholesale Market Participant (WMPA) Used for non-ferc jurisdictional interconnections Requires a two party-agreement between Customer and TO Construction Service (ICSA) Used as companion to ISA when TO work is required identifies work scope, schedule, and coordinates TO construction related activities for Attachment Facilities and Network Upgrades 8

9 Request Studies Feas Imp Fac Execution ISA/CSA/WMPA Implementation Commercial Operation Projects Coordination Project moved to IC Group after s are fully executed Projects may drop out of the queue at any time Project size may be reduced but not increased Projects are withdrawn from the queue by PJM if they miss milestones or financial obligations 9

10 Feasibility Study Deposits Structure Deposit for Small (<20 MWs) Capacity Resources (Attachment N) 1 st thru 4 th Month of Queue Period - $10,000 deposit (refundable) 5 th Month of Queue Period - $12,000 deposit (refundable) 6 th Month of Queue Period - $15,000 deposit (refundable) Deposit for Small (2 MWs or less) Energy Only Resources (Attachment Y) 1 st thru 4 th Month of Queue Period - $2,000 deposit (refundable) 5 th Month of Queue Period - $3,000 deposit (refundable) 6 th Month of Queue Period - $5,000 deposit (refundable) PJM

11 QUESTIONS? 11