PJM Manual 12: Balancing Operations Revision: 38 Effective Date: April 20, Prepared by Dispatch

Transcription

1 PJM Manual 12: Balancing Operatins Revisin: 38 Effective Date: April 20, 2018 Prepared by Dispatch PJM 2018

2 Table f Cntents Table f Cntents Table f Exhibits...6 Apprval...7 Current Revisin...8 Intrductin... 9 Abut PJM Manuals... 9 Abut This Manual... 9 Using This Manual...10 Sectin 1: Overview Scpe and Purpse f Dispatching PJM Respnsibilities PJM Cmmunicatins PJM Member Respnsibilities Market Buyers Market Sellers Lad Serving Entities Sectin 2: Dispatching Tls Cntrl Center Tls EMS Applicatins PC Applicatins Ancillary Tls...17 Sectin 3: System Cntrl Adjusting PJM Balancing Area-Scheduled Resurces PJM Area Cntrl Errr PJM Cntrl Implementatin PJM Member Cntrl Implementatin Time Errr Time Errr Crrectin Ntificatin External Transactins Scheduling Overview f External Transactin Scheduling External Transactin Scheduling Business Rules PJM Cntact Infrmatin External Transactin Timing Requirements Revisin: 38, Effective Date: 04/20/2018 PJM

3 Table f Cntents General Infrmatin Data Requirements Ramp Limits OASIS Business Rules Entering Ramp Reservatins Entering Schedules Entering Real-Time with Price Schedules Entering Tw-Settlement Schedules Transactin Validatins, Verificatin and Checkut Inadvertent Interchange Crrecting fr Accumulatin f Inadvertent Interchange Measurements and Cmpliance...38 Sectin 4: Prviding Ancillary Services Reserves Mnitring Reserves Lading Reserves Shared Reserves Payback Restring Reserves VACAR Reserve Sharing Regulatin PJM RTO Regulatin Market Obligatins Regulatin Signals Determining Regulatin Assignment Dispatching Regulatin Qualifying Regulating Resurces Regulatin Qualificatin Test Certifying Regulating Resurce Certifying Multiple Cmbustin Turbines r Hydr Units at a Single Site Increasing Regulatin Capability n a Resurce Disqualificatin and Re-Qualificatin f a Regulatin Resurce Perfrmance Scre Calculatin Use f Perfrmance Grups in the Perfrmance Scre Perfrmance Scres fr Regulatin Resurces during a Synchrnized Reserve Event Perfrmance Scres during Perids with Insufficient Data Perfrmance Scres fr Regulatin Assignments with Limited Ntificatin Black Start Service Additinal PJM Requirements Restratin Assumptins Jurisdictin Definitins Objectives f Determining Black Start Criticality Assumptins Revisin: 38, Effective Date: 04/20/2018 PJM

4 Table f Cntents Minimum Critical Unit Requirements Prduct Descriptin Generatr Owner s Cmmitment Perfrmance Standards PJM Obligatins Testing Testing and Training Standards and Recrds Nn-perfrmance Terminatin f Black Start Service...67 Sectin 5: Transmissin Facility Cntrl Crrective Cntrl Strategies Reactive Limitatin Cntrl Vltage Cntrl Actin in a Lw-Vltage Situatin kv System Vltage Belw 500 kv Actin in a High-Vltage Situatin Thermal Overladed Transmissin Transactin Curtailment Generatin Redispatch Operating Mde Change Prcedure Generatin Redispatch (Nn-Market Facilities) Attachment A: PJM Instantaneus Reserve Check (IRC)...77 IRC - Definitins f Terms / Calculatins...77 Attachment B: Transmissin Cnstraint Cntrl Guidelines...80 B.1 Nn-Cst Measures...80 B.2 Generatin Redispatch B.3 Analyzing and Cntrlling nn-market BES facilities...81 B.3.1 Outage Apprval Prcess fr BES facilities B.3.2 Outage Apprval Prcess fr nn-market BES Facilities B.3.3 Reslving Mdeling Differences B.3.4 Real-time Cntrlling Actins...83 B.3.5 Maintaining System Reliability Attachment C: PJM Black Start Test Reprt Frm...85 Attachment D: Disturbance Cntrl Perfrmance/Standard...86 Attachment E: PJM REPORTING OF NERC BAL Standard E.1 Daily Data Supprt fr BAL-005, BAL-006, and BAL-001 Reprting...88 Revisin: 38, Effective Date: 04/20/2018 PJM

5 Table f Cntents E.2 Inadvertent Interchange Calculatin E.3 PJM Frequency Bias Attachment F: Dynamic Transfers...91 F.1 Backgrund...91 F.2 Dynamic Transfer Request Prcess Flw...91 Purpse...91 Submitting Requests...92 Administrative Fee Pseud-Tie Apprval Prcess Planning Eligibility Criteria...92 Mdeling Eligibility Criteria Electrical Distance Test Seams Crdinatin Mdel Cnsistency Markets Eligibility Criteria Market-t-Market Flwgate Test Transfer f Firm Allcatin Eligibility Estimate & Depsit...95 Dcumentatin Withdrawals...95 F.3 PJM EMS Mdeling Requirements fr Implementing Pseud-Ties...96 F.4 Generatin Dynamic Transfer Business Rules F.5 Dynamic Transfer Requirements Summary F.6 References Revisin Histry Revisin: 38, Effective Date: 04/20/2018 PJM

6 Table f Exhibits Table f Exhibits Exhibit 1: Dispatching Timeline Exhibit 2: Calculatin f PJM ACE Exhibit 3: PJM Regulatin Signals...22 Exhibit 4: Calculatin f Dispatch Price and MW Signals...23 Exhibit 5: Resurce Dispatching Exhibit 6: PJM Member Interface...25 Exhibit 7: Example Ramp Calculatin...31 Exhibit 8: On-Peak Transmissin Service Over 16 Hur Perid Example Exhibit 9: On-Peak Transmissin Service Over 18 Hur Perid Example Exhibit 10: Off-Peak Mnday-Friday Transmissin Service Example Exhibit 11: Off-Peak Saturday-Sunday Transmissin Service Example...33 Exhibit 12: Assigned Regulatin and Regulatin Range requirements...45 Exhibit 13: Limit Relatinship fr Regulatin Exhibit 14: Area Regulatin Assignment...49 Exhibit 15: Crrective Cntrl Strategies Exhibit 16: Pwer System Limits Exhibit 17: PJM Instantaneus Reserve Check Terms & Relatinships Exhibit 18: Definitins f PJM Instantaneus Reserve Check Terms Exhibit 19: Sample Cmpleted Instantaneus Reserve Check Cmpany Unit Data...79 Exhibit 20: Partial unit Dynamic Transfer methds...97 Exhibit 21: Dynamic Transfer Requirements Summary Revisin: 38, Effective Date: 04/20/2018 PJM

7 Apprval Apprval Apprval Date: 04/25/2018 Effective Date: 04/20/2018 Chris Pilng, Manager Dispatch Revisin: 38, Effective Date: 04/20/2018 PJM

8 Current Revisin Revisin 38 (04/20/2018): Current Revisin Sectin F.2, previusly sectin F.4, cmpletely revised t reflect new eligibility criteria apprved by FERC in the External Capacity Filing as well as updated language fr Estimates, PJM Deliverables and Withdrawals. Sectin F.3 cntains minr changes including remval f feasibility language which was mved t sectin F.2 Sectin F.4, previusly sectin F.2, includes updated PwerMeter submissin language. Sectin F.5 cntains minr changes t reflect updates made in the previus sectins. Revisin: 38, Effective Date: 04/20/2018 PJM

9 Intrductin Intrductin Welcme t the PJM Manual fr Balancing Operatins. 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 PJM fr the peratin, planning, and accunting requirements f the PJM RTO 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 the Library sectin n PJM.cm. Abut This Manual The PJM Manual fr Balancing Operatins is ne f a series f manuals within the PJM Energy Market manuals. This manual fcuses n the activities that ccur in the real-time peratin f the PJM Energy Market. The manual describes hw PJM dispatches and cntrls Capacity Resurces and hw PJM mnitrs transmissin facilities. It als describes hw PJM prvides Ancillary Services. PJM Manual fr Balancing Operatins cnsists f five sectins and six attachments. Bth the sectins and the attachments are listed in the table f cntents beginning n page ii. Intended Audiences The intended audiences fr PJM Manual fr Balancing Operatins are: PJM Members Any participant requesting t purchase r sell energy t r frm PJM Energy Market and any participant that schedules bilateral sales r purchases. PJM peratins staff PJM peratins staff mnitrs the perfrmance f the Capacity Resurce. PJM dispatchers PJM dispatchers are respnsible fr reliable peratin f the PJM RTO and psting infrmatin in the OASIS. PJM dispatchers refers t PJM dispatchers lcated in all PJM cntrl centers. Transmissin Owners/Generatin Owners The Transmissin Owners/Generatin Owners system peratrs/ dispatchers direct peratin f the lcal facilities and cmmunicate with PJM dispatcher t crdinate peratin f the Bulk Pwer Electric Supply system facilities. Revisin: 38, Effective Date: 04/20/2018 PJM

10 Intrductin References The references t ther dcuments that prvide backgrund r additinal detail directly related t the PJM Manual fr Balancing Operatins are: NERC Operating Manual PJM Manual fr Pre-Scheduling Operatins (M-10) PJM Manual fr Scheduling Operatins (M-11) PJM Manual fr Operating Agreement Accunting (M-28) PJM Manual fr Emergency Operatins (M-13) 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 PJM manual. We start each sectin with an verview. Then, we present details and prcedures r references t prcedures fund in ther PJM manuals. The fllwing prvides an rientatin t the manual s structure. What Yu Will Find In This Manual A table f cntents that lists tw levels f subheadings within each f the sectins and attachments 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 Attachments that include additinal supprting dcuments, frms, r tables A sectin at the end detailing all previus revisins f this PJM manual. Revisin: 38, Effective Date: 04/20/2018 PJM

11 Sectin 1: Overview Sectin 1: Overview Welcme t the Overview sectin f the PJM Manual fr Balancing Operatins. In this sectin, yu will find the fllwing infrmatin: A descriptin f the scpe and purpse f dispatching (see Scpe and Purpse f Dispatching ). A list f PJM dispatching respnsibilities (see PJM Respnsibilities ). A list f the PJM Member s dispatching respnsibilities (see PJM Member Respnsibilities ). 1.1 Scpe and Purpse f Dispatching Operatin f the PJM RTO invlves many activities that are perfrmed by different perating and technical persnnel. These activities ccur in parallel n a cntinuus basis, 24 hurs a day and can be gruped int three verlapping time frames: Pre-scheduling Operatins Scheduling Operatins Dispatching Operatins In the PJM Manual fr Balancing Operatins we fcus mainly n the activities that take place in the current hur f the Operating Day. The fllwing exhibit presents the dispatching activities in the frm f a timeline. The reference pint fr the timeline is the Operating Day, recgnizing that every new day becmes an Operating Day. This timeline-type f descriptin is used thrughut this PJM Manual. Revisin: 38, Effective Date: 04/20/2018 PJM

12 Sectin 1: Overview Exhibit 1: Dispatching Timeline Dispatching includes system cntrl, Ancillary Service mnitring, and transmissin system mnitring and cntrl. During the dispatching prcess, PJM implements and adjusts the Current Operating Plan, which is develped during the scheduling prcess, t maintain reliability and minimize the cst f supplying the energy, reserves, and ther services that are required by the PJM Members and the peratin f the PJM RTO. The Current Operating Plan is develped within the guidelines and rules f the Tw Pass System. In this manual we make n special distinctin between the terms price and cst. PJM Members submit their bids accrdingly t either actual cst r ffer price as designated by PJM fr each generatin resurce. Fr specific infrmatin as t the use f price and cst, refer t the Markets Database sectin in the PJM Manual fr Pre-Scheduling Operatins. 1.2 PJM Respnsibilities PJM mnitrs and cntrls the PJM RTO such that the least-cst means f satisfying the prjected hurly energy, Operating Reserves, and ther Ancillary Services requirements f the Market Buyers, including the reliability requirements f the PJM Balancing Area, are met. Specifically, PJM s respnsibilities t supprt dispatching activities include: Revisin: 38, Effective Date: 04/20/2018 PJM

13 Sectin 1: Overview Directing PJM Members t adjust the utput f any PJM RTO-Scheduled Resurce; cmmit unscheduled PJM RTO resurces; cancel selectin f PJM Balancing Area- Scheduled Resurces Operating the PJM RTO transmissin system in accrdance with NERC and reginal reliability cuncil standards and prcedures. Cmmitting the mst cst efficient Regulatin and Synchrnized Reserve resurces available Implementing the PJM/MISO Cngestin Management prcedure fr cngested transmissin facilities external t PJM RTO. Implementing the NERC Transmissin Lading Relief (TLR) prcedure as necessary t prvide relief t external r internal transmissin facilities. Verifying the accuracy f LMP data during cnstrained/uncnstrained peratins. Implementatin f Emergency Prcedures in accrdance with PJM Manual M-13, Emergency Operatins. Nte: Synchrnized Reserve: Sectin B.01 f the PJM Operating Agreement (OA) defines Synchrnized Reserves as the reserve capability f generatin resurces that can be cnverted fully int energy r Demand Resurces whse demand can be reduced within ten minutes frm the request f the Office f the Intercnnectin dispatcher, and is prvided by equipment that is electrically synchrnized t the Transmissin System. Synchrnized Reserves are supplied frm 10 minute synchrnized generating resurces (i.e., Synchrnus Reserves) and 10-minute demand side respnse resurces PJM Cmmunicatins PJM dispatching peratins are cnducted frm tw cntrl centers. The dispatchers in bth cntrl centers wrk tgether as a single team. The Shift Supervisr prvides real time leadership ver dispatchers in bth cntrl centers. Cmmunicatins between the cntrl centers is facilitated thrugh the use f clsed circuit TV thrugh which dispatchers can cmmunicate visually and rally in real time with their cunterparts and supervisin. System mnitring and cntrl respnsibilities are shared between the cntrl centers. 1.3 PJM Member Respnsibilities Only Market Buyers and Market Sellers are eligible t submit ffers and purchase energy r related services in the PJM Energy Market. The PJM Members include the Market Buyers and the Market Sellers Market Buyers There are tw general types f Market Buyers: 1. Internal Market Buyer - An Internal Market Buyer is a buyer that is purchasing energy frm the PJM Energy Market fr cnsumptin by end-users that are lcated inside the PJM RTO. An Internal Market Buyer may be further classified as a Generating Revisin: 38, Effective Date: 04/20/2018 PJM

14 Sectin 1: Overview Market Buyer. A Generating Market Buyer is an Internal Market Buyer that wns r has cntractual rights t the utput f generatin resurces which are capable f serving the Market Buyer s lad in the PJM RTO r selling energy-related services in the PJM Energy Market r elsewhere. 2. External Market Buyer - An External Market Buyer is a Market Buyer that is making purchases f energy frm the PJM Energy Market fr cnsumptin by end-users that are lcated utside the PJM RTO. The Internal Market Buyers dispatching respnsibilities include: Satisfying its Regulatin bligatin frm its wn resurces, By cntractual arrangement with anther PJM Member, r, By purchases frm the PJM Energy Market Market Sellers A Market Seller is a PJM Member that demnstrates t PJM that it meets the standards fr the issuance f an rder mandating the prvisin f transmissin service under Sectin 211 f the Federal Pwer Act, submits an applicatin t PJM, and is apprved. By definitin, all Market Buyers becme Market Sellers upn apprval f their applicatins. Market Sellers dispatching respnsibilities include: Ensuring each Capacity Resurce cmplies with energy dispatching signals and instructins that are issued by PJM, and, Cmplying with Regulatin signals and instructins that are issued by PJM Lad Serving Entities A Lad Serving Entity (LSE) is any entity that has been granted authrity r has an bligatin pursuant t state r lcal law, regulatin, r franchise t sell electric energy t end-users that are lcated within the PJM RTO. An LSE may be a Market Buyer r a Market Seller. Revisin: 38, Effective Date: 04/20/2018 PJM

15 Sectin 2: Dispatching Tls Sectin 2: Dispatching Tls Welcme t the Dispatching Tls sectin f the PJM Manual fr Balancing Operatins. In this sectin yu will find the fllwing infrmatin: A descriptin f PJM Cntrl Center tls used fr dispatching and peratins (see Cntrl Center Tls ). A descriptin f the infrmatin that is passed n t market accunting (see Accunting Infrmatin ). 2.1 Cntrl Center Tls The tls that are currently used by PJM peratins staff are described accrding t three categries: EMS cmputer applicatins, PC applicatins, and ancillary tls. EMS is further described in PJM Manual 1, Sectin 1, PJM Systems EMS Applicatins Autmatic Generatin Cntrl (AGC) This prgram runs every tw secnds, calculating Area Cntrl Errr (ACE), Area Regulatin (AR), and ecnmic dispatch. Security Analysis (SA) This prgram runs apprximately every 1-2 minutes and calculates the simulated pst-cntingency flws n a large number f mnitred facilities n the PJM system fr the lss f selected cntingencies. An EMS Alarms is generated fr any SA pst-cntingency value that ges beynd, r falls back under, 100% f the mnitred facility s Nrmal Limit (NL) f 80% f the mnitred facility s Lng Term Limit (LT). Any facility with an SA value that is greater than 100% f the NL, r 80% f the mnitred facility s LT, will be mnitred in the SA Thermals display f PJM s RTNA package. State Estimatr (SE) This prgram runs apprximately every minute and prvides simulated flws fr the PJM system based n current tplgy and the availability f telemetered data. SE is used t prvide the input t the market systems. An EMS Alarm is generated fr any SE value that ges beynd, r falls back under 92% f the mnitred facility s NL. Any facility with an SE value that is greater than 92% f the NL will be mnitred in the Actual Thermal Overlad display, as well as the SA Thermals display, f PJM s RTNA Package. Transfer Limit Calculatr (TLC) This prgram runs apprximately every 4 5 minutes and establishes transfer limits fr selected interfaces n the PJM system. The prcess that the applicatin uses is t establish the vltage cllapse pint fr these interfaces and applying a suitable margin frm the cllapse pint as the safe perating limit. TLC facilities are mnitred cntinuusly n PJM s RTO Critical Infrmatin display. In additin, an EMS Alarm is generated whenever the SE MW flw fr a transfer interface exceeds the Recmmended Limit as calculated by TLC PC Applicatins Markets Database This database is used by the Tw-Settlement and Market-Based Regulatin Systems. Market Participants update the MDB cntinuusly via XML and Web-based interfaces. Revisin: 38, Effective Date: 04/20/2018 PJM

16 Sectin 2: Dispatching Tls Dispatch Management Tl (DMT) The DMT enables PJM Dispatchers t manage resurce infrmatin, transmissin cnstraint infrmatin and administer the Regulatin Market. The DMT autmatically lgs resurce status changes and prvides an electrnic surce f lgging infrmatin fr Market Settlements. Real-Time Security Cnstrained Ecnmic Dispatch (RT-SCED) This applicatin calculates Security Cnstrained Ecnmic Dispatch slutins fr presentatin t the dispatchers. The dispatchers then select the best slutin that utilizes least-cst dispatch while simultaneusly cntrlling active transmissin cnstraints. Intermediate-Time Security Cnstrained Ecnmic Dispatch (IT-SCED) this applicatin utilizes prjected system cnditins t calculate cmmit/decmmit resurces n the system and prvide a frward-lking dispatch trajectry fr presentatin t the dispatchers. edart Dispatcher Applicatins and Reprting Tl. Internet based system that allws cmmunicatin f system infrmatin between PJM and member cmpany dispatchers, i.e. Generatin and Transmissin Outage Tickets. Resurce Scheduling and Cmmitment (RSC) This prgram is used t schedule generatin resurces fr up t a week in advance. edart Generatin Checkut This prgram cmpares unit schedule availability/bid data in emarket, unit utages submitted via Generatr Ticket (edart) and stated capability t ensure accurate market data and capacity/reserve prjectins. Hydr Calculatr This prgram is used t schedule and ptimize hydr generating resurces lcated n the Susquehanna River. Scheduling Crdinatr s Tl Updates day-ahead generatin frecasts and schedules frm market databases with additinal data frm varius input surces. This tl is utilized t prject system reserves. Interchange Manager (IXM) This prgram is used by PJM Dispatchers and Transactin Crdinatrs t manage transactin infrmatin. ExSchedule Internet based system that allws PSE s t submit, revise, and review energy schedules. Interchange Distributin Calculatr (IDC) IDC is a NERC-spnsred prgram, used in the Eastern Intercnnectin fr the purpse f managing transactins. All interchange transactins are mdeled in the IDC and the IDC calculates flw impacts f these transactins n each flwgate. If flw relief n any f these flwgates becmes necessary, the IDC is used t cmmunicate which transactins will be mdified r curtailed t prvide the relief in accrdance with business rules established in the NERC TLR prcedure. Reliability Crdinatr Infrmatin System (RCIS) Internet based system used t exchange perating infrmatin amng Reliability Crdinatrs and Balancing Areas. Smartlg Database lgging tl used by dispatch psitin t lg system events. This tl cntains bridges frm varius systems t partial autmate the lgging prcess. ALL-CALL Used by PJM peratins staff t simultaneusly disseminate infrmatin t transmissin and generatin cntrl centers. Revisin: 38, Effective Date: 04/20/2018 PJM

17 Sectin 2: Dispatching Tls Data Viewer Internet based system that allws PJM Dispatcher and participants t view current and prjected system data and emergency prcedures infrmatin. PI Prcess Bk visualizatin tl utilized t display telemetered data. Perfrmance Scre Calculatin Engine (PSCE) is a.net applicatin that calculates the hurly and histric perfrmance scre f a resurce s regulatin respnse cmpared t the regulatin signal sent by PJM. PSCE als calculates the mileage f each regulatin signal by hur Ancillary Tls Infrmatinal TV This TV is used t btain weather and Emergency infrmatin frm selected lcal netwrk and cable channels. Weather Data Weather reprts are printed frm the Internet, as psted by the vendr. Direct Phne Lines Direct telephne line cmmunicatin is available between PJM, the Lcal Cntrl Centers, LSEs and between PJM and adjacent Balancing Areas. Dynamic Mapbard The dynamic mapbard displays selected system data; status f lines, transfrmers, capacitrs, and generatrs; and the results f security analysis f the bulk pwer transmissin system. Racal Recrding Device Used t recrd all phne cnversatins frm dispatching and scheduling psitins fr dcumentatin. Satellite Cmmunicatins Push-t-talk all-call and direct pint-t-pint satellite cmmunicatins exists with PJM participants and participating external entities as backup cmmunicatins. Phnes/cell phnes Used fr back-up cmmunicatins. Revisin: 38, Effective Date: 04/20/2018 PJM

18 Sectin 3: System Cntrl Sectin 3: System Cntrl Welcme t the System Cntrl sectin f the PJM Manual fr Balancing Operatins. In this sectin, yu will find the fllwing infrmatin: Hw PJM adjusts PJM RTO-Scheduled Resurces (see Adjusting PJM Balancing Area- Scheduled Resurces ). Hw PJM crrects fr time errr (see Time Errr ). Hw PJM crrects fr accumulated inadvertent interchange (see Inadvertent Interchange ). PJM, as the RTO, perated t maintain intercnnectin steady state frequency within defined limits by balancing real pwer demand and supply in real time (per NERC Standard Bal-001-0, Real Pwer Balancing Cntrl Perfrmance, and ensures, as the Balancing Authrity, its ability t utilize reserves t balance resurces and demand and return intercnnectin frequency within defined limits fllwing a reprtable disturbance (per BAL-002-0, Disturbance Cntrl Perfrmance ). Specifics are discussed as fllws. 3.1 Adjusting PJM Balancing Area-Scheduled Resurces The PJM RTO must perate sufficient generating capacity under autmatic cntrl t meet its bligatin t cntinuusly balance its generatin and interchange schedules with its lad. It is als required t prvide its cntributin t frequency Regulatin fr the Eastern Intercnnectin. Frequency deviates frm schedule because actual tie line pwer flw des nt cntinuusly match scheduled tie line pwer flw. This imbalance must be minimized, s as nt t impse the PJM RTO s cntrl requirements n the intercnnected system. Area Cntrl Errr (ACE) is a value that defines hw well the PJM Balancing Area is meeting its bligatin. PJM frequency surce under primary cntrl is based n use f a Glbal Psitining System (GPS) based truetime device which is linked int the EMS cntrl system prviding 2 secnd signal input fr cntinuus frequency mnitring. The dispatcher has the ability t change frequency surce within EMS shuld the primary surce becme disabled. Shuld there be a need t cntrl an ACE in multiple znes due t extreme peratins, frequency surces can be selected by generatin cntrl znes as set up in EMS PJM Area Cntrl Errr Area Cntrl Errr is a measure f the imbalance between surces f pwer and uses f pwer within the PJM RTO. This imbalance is calculated indirectly as the difference between scheduled and actual net interchange, plus the frequency bias cntributin t yield ACE in megawatts. Tw additinal terms may be included in ACE under certain cnditins--the time errr bias term and PJM dispatcher adjustment term (manual add). These prvide fr autmatic inadvertent interchange payback and errr cmpensatin, respectively. The sign cnventin fr pwer flw used at PJM is psitive fr pwer flw int PJM, in cntrast t the NERC sign cnventin, in which pwer flw int a Balancing area is negative. This has been carried ver int the PJM ACE calculatin, which results in a psitive ACE representing vergeneratin and a negative ACE representing undergeneratin. Exhibit 2 shws the calculatin f PJM ACE in blck diagram frm. Revisin: 38, Effective Date: 04/20/2018 PJM

19 Sectin 3: System Cntrl Exhibit 2: Calculatin f PJM ACE Revisin: 38, Effective Date: 04/20/2018 PJM

20 Sectin 3: System Cntrl Per BAL-001-0, Real Pwer Balancing Cntrl Perfrmance, Where: NI A NI S B F A F S I ME is the algebraic sum f actual flws n all tie lines (i.e., Actual Net Interchange) is the algebraic sum f scheduled flws n all tie line (i.e., Scheduled Net Interchange) is the Frequency Bias Setting (MW/0.1 H Z ) fr the Balancing Authrity. The cnstant factr f 10 cnverts the frequency setting t MW/ H Z is the actual frequency is the scheduled frequency is the meter errr crrectin factr ACE Cntrl Mdes There are three mdes f cntrl available t PJM dispatcher fr the peratin f the PJM RTO. Flat Frequency Cntrl Flat frequency cntrl utilizes nly pwer system frequency as the cntrlling parameter. This mde f cntrl nly respnds t frequency deviatins and des nt adjust peratins fr any intercnnectin tie line schedule deviatins. This mde is applicable nly t thse instances when the PJM Balancing Area becmes islated frm the Eastern Intercnnectin. Flat Tie Line Cntrl Flat tie line cntrl utilizes nly intercnnectin tie line flw as the cntrlling parameter. This mde f cntrl nly respnds t net tie flw deviatins and des nt adjust peratin fr any frequency deviatins. This mde is limited t special circumstances when the PJM Balancing Area desires t maintain a given net interchange flw and the pwer system frequency is stable and being cntrlled by ther Balancing Areas. Tie Line Bias Cntrl Tie line bias cntrl is the mst widely used mde f cntrl fr multi- Balancing Area pwer systems. This mde f cntrl respnds t bth frequency and net tie line flw deviatins. Exhibit 4 shws all f the calculatins fr tie line bias cntrl. The frequency bias factr fr the PJM RTO is set by Intercnnectin Agreement that is at least 1% f the yearly peak value and accmplishes the fllwing: Cmpensates fr autmatic gvernr actin s that ACE des nt und the changes in generatr utput due t frequency fluctuatins. Cmpensates fr any lack f PJM gvernr respnse by calculating an ACE that prduces the PJM RTO s agreed upn share f frequency supprt t the Eastern Intercnnectin. NERC Cntrl Perfrmance Standard The PJM RTO perates in accrdance with NERC Resurce and Demand Balancing (i.e. BAL) standards t ensure its capability t utilize reserves t balance resurces and demand in real-time and t return Intercnnectin frequency within defined limits fllwing a Reparable Disturbance. PJM satisfies the BAL standards by maintaining sufficient generating capacity Revisin: 38, Effective Date: 04/20/2018 PJM

21 Sectin 3: System Cntrl under autmatic cntrl t satisfy its frequency regulatin bligatin as a member f the Eastern Intercnnectin. NERC establishes definitive measures f cntrl perfrmance. These cntrl perfrmance standards are dcumented in the NERC in numerus BAL standards. The NERC Cntrl Perfrmance Standards (CPS) as presented in BAL-001-0, Real Pwer Balancing Cntrl Perfrmance define a standard f minimum cntrl perfrmance fr each Balancing Area. The standards are summarized as fllws: Cntinuus Mnitring Each Balancing Area mnitrs its cntrl perfrmance n a cntinuus basis against tw standards: Standard One - CPS1 Over a year, the average f the clck-minute averages f a Balancing Area s ACE divided by minus 10 B (where B is Balancing Area frequency bias) times the crrespnding clck-minute averages f the Intercnnectin s frequency errr must be less than a specific limit. This limit,, is a cnstant derived frm a targeted frequency bund (limit) that is reviewed and set, as necessary, by NERC. Standard Tw - BAAL The Balancing Authrity ACE Limit (BAAL) peratins evaluate the clck-minute average f Reprting ACE des nt exceed its clckminute limit fr mre than 30 cnsecutive clck-minutes Disturbance Cnditins In additin t CPS1 and BAAL, the Disturbance Cntrl Standard (DCS) as presented in BAL-002-0, Disturbance Cntrl Perfrmance, is used by each Balancing Area t mnitr cntrl perfrmance during recvery frm disturbance cnditins. The DCS states that ACE must return either t zer r t its predisturbance level within fifteen minutes fllwing the start f the disturbance. Measurements and Cmpliance cntinuus mnitring is perfrmed by PJM s Perfrmance Cmpliance Department n a daily, mnthly, quarterly, and annual basis t ensure cmpliance with NERC BAL Standards. Perfrmance data measurements are retained in electrnic frm per NERC BAL requirements. ACE Values The ACE used t determine cmpliance t the CPS must reflect its actual value and exclude shrt excursins due t transient telemetering prblems r ther influences such as cntrl algrithm actin. System Frequency used t determine cmpliance t CPS must reflect the actual value used in dispatch prvided at full scan rate (minimum 4 secnd). CPS Cmpliance Each Balancing Area must achieve CPS1 cmpliance f 100% and nt exceed 30 cnsecutive BAAL clck-minutes. Daily reprts are generated with CPS1 & BAAL preliminary infrmatin fr dispatch. Perfrmance Standard Surveys All Balancing Areas must respnd t perfrmance standard surveys that are requested by NERC, Survey descriptins are fund in Attachment H. Disturbance Cntrl Standard Surveys Each Balancing Area must submit a quarterly summary reprt t thru the reginal authrity t NERC dcumenting the Cntrl Area s cmpliance t the DCS during the reprting quarter. Details prvided in Attachment H reprting requirements fr NERC BAL-002 DCS Cmpliance Each Balancing Area must achieve DCS cmpliance 100% f the time fr reprtable disturbances. Revisin: 38, Effective Date: 04/20/2018 PJM

22 Sectin 3: System Cntrl Reprting requirements fr NERC BAL standards fund in Attachment H. PJM perfrms an annual review f measurement parameters and requirement threshlds per NERC and Reliability First Standards. Whenever the magnitude f ACE indicates a severe shrtage f generatin, PJM dispatcher ntifies PJM Members t immediately supply energy frm their Synchrnized Reserves. These requests are made via the PJM ALL-CALL cmmunicatins sftware and via EMS ICCP datapints PJM Cntrl Implementatin PJM uses the PJM ACE signal t establish the required cntrl signals that are sent t each PJM Member whse generating resurces cme under the directin f PJM. PJM develps tw types f cntrl signals as fllws: Regulatin Dispatch Regulatin Signals PJM calculates tw Regulatin signals, as shwn by Exhibit 3. RegA- lw pass filter f ACE fr traditinal regulating resurces, and, RegD- high pass filter f ACE fr dynamic r fast respnse resurces Exhibit 3: PJM Regulatin Signals At present, PJM sends the Regulatin signal in the fllwing frm t the participating Resurce Owners: Revisin: 38, Effective Date: 04/20/2018 PJM

23 Sectin 3: System Cntrl Digital The Digital Regulatin signal is sent t each Resurce Owner. The Generatin Owners receive this signal and then send the apprpriate signal t each regulating resurce. Dispatch Signals The dispatch signals that are calculated by PJM are intended t direct dispatchable generating resurces t fllw the PJM RTO s requirement. The strategy that is used by PJM is t first develp a PJM price signal frm the raw PJM ACE calculatin. Exhibit 4 shws hw the Dispatch Rate and MW signals are calculated fr each participating Generatin Owner. Exhibit 4: Calculatin f Dispatch Price and MW Signals Step 1 A cmmn PJM price signal is develped by the RT-SCED tl which acts n lad, interchange, transmissin cnstraints and PJM dispatcher input. Step 2 In the event f transmissin cngestin r ther security issues; RT-SCED in cnjunctin with the PJM dispatcher may recalculate the dispatch price signals fr the effected PJM transmissin znes. The price signal fr a particular PJM Member is then applied t the generatin bid prices fr that PJM Member. Step 3 The MW versus price relatinship is develped by PJM fr each participating Generatin Owner. The MW versus price relatinship is develped by PJM using the scheduled generatr ffers submitted day-ahead via emarket. Exhibit 7 shws hw the varius generatin resurces are crrelated with respect t bid prices in rder t develp this ttal MW versus price relatinship. Revisin: 38, Effective Date: 04/20/2018 PJM

24 Sectin 3: System Cntrl Exhibit 5: Resurce Dispatching It is imprtant t emphasize that the MW versus price relatinship applies t manually dispatched, as well as autmatically cntrlled generating units. Since there is a wide mixture f slw and fast respnding units and manually dispatched units in the PJM Balancing Area, the Dispatch Rate signal is adjusted slwly by PJM dispatcher in rder t avid unnecessary generatin adjustments PJM Member Cntrl Implementatin PJM assigns desired cntrl actins t the Internal PJM Members. PJM Members are respnsible fr the actual physical cntrl f generating resurces. This is generally accmplished thrugh Generatin Owners. Exhibit 6 shws the infrmatin that is exchanged between PJM and the Generatin Owners. Specific requirements regarding telemetered data and cntrls as required by BAL-005-0, Autmatic Generatin Cntrl are described in PJM Manual fr Cntrl Center and Data Exchange Requirements (M01), Cntrl Center Requirements, Sectin 4, Billing Metering Standards. Revisin: 38, Effective Date: 04/20/2018 PJM

25 Sectin 3: System Cntrl Exhibit 6: PJM Member Interface The fllwing infrmatin is sent by PJM t the Generatin Owners: PJM ACE MW Regulatin MW either RegA r RegD Desired MW Generatr status The fllwing infrmatin is sent by the PJM Members t PJM: Actual PJM/external tie line MW Actual ttal generatin MW Ttal assigned Regulatin MW either RegA r RegD Actual net interchange MW The PJM Member s Generatin Owner cnverts the ttal dispatch signal (price r MW) and the regulatin signal t individual unit cntrl signals. PJM Member resurces that are dispatchable Revisin: 38, Effective Date: 04/20/2018 PJM

26 Sectin 3: System Cntrl by PJM are expected t respnd t the dispatch and regulatin signals received frm PJM. PJM Members are expected t perate their generating resurces as clse t desired utput levels, as practical, cnsistent with Gd Utility Practice. 3.2 Time Errr The system-wide mismatch between lad and generatin results in frequency deviatins frm scheduled frequency. The integrated deviatin appears as a departure frm crrect time, i.e., as a time errr. Therefre, time errr is the accumulatin f frequency deviatin ver a defined perid f time. In accrdance with NERC BAL Standards, each Intercnnectin designates an Intercnnectin Time Mnitr t mnitr time errr and t initiate r terminate crrective actin when time errr reaches predetermined limits. The PJM RTO is a part f the Eastern Intercnnectin. The Intercnnectin Time Mnitr mnitrs the electric system time against true time, as measured by the Natinal Institute f Standards and Technlgy (NIST), in Bulder, Clrad. When time errr reaches ±10 secnds, the Intercnnectin Time Mnitr initiates a time crrectin. N time errr crrectins fr fast time will be initiated between 0400 and 1100 hurs Central Time. In respnse t the Intercnnectin Time Mnitr, PJM implements the requested frequency schedule ffset. A time crrectin may be halted, terminated, r extended if the designated Intercnnectin Time Mnitr r PJM determines system reliability cnditins warrant such actin. After the premature terminatin f a manual time crrectin, a slw time crrectin can be reinstated after the frequency has returned t 60 Hz r abve fr a perid f ten minutes. A fast time crrectin can be reinitiated after the frequency has returned t 60 Hz r lwer fr a perid f ten minutes. At least 1 hur shall elapse, hwever, between the terminatin and re-initiatin ntices Time Errr Crrectin Ntificatin The Intercnnectin Time Mnitr issues the time crrectin infrmatin via a NERC ht-line cnference call and a message is psted n the RCIS. A frequency ffset f ±0.02 Hz starts and terminates n the hur r half-hur. PJM Actins Step One - PJM dispatcher ntifies the Transmissin Owners/Generatin Owners, via the PJM ALL-CALL, t annunce that time errr crrectin is in effect. T crrect fr a slw r fast clck, system frequency schedules are ffset by ±0.02 Hz and given an assigned letter designatr. Step Tw - At the assigned time, PJM dispatcher inputs frequency schedule int the PJM EMS System using t Hz t crrect fr fast time errr r Hz t crrect fr slw time errr as directed by the Intercnnectin Time Mnitr. Step Three - When the time errr is reduced t specified levels r if the time errr is nt crrected in a reasnable perid, the Intercnnectin Time Mnitr issues the rder t return frequency schedule setters t Hz. The Intercnnectin Time Mnitr initiates a NERC ht-line cnference call and psts a message n the RCIS. At this time, PJM dispatcher resets the PJM EMS frequency schedule t Hz at the assigned time. Revisin: 38, Effective Date: 04/20/2018 PJM

27 Sectin 3: System Cntrl Step Fur - PJM dispatcher ntifies the Transmissin Owners/Generatin Owners via the PJM ALL-CALL f the cancellatin f the time crrectin, and the time the scheduled system frequency will return t Hz. Step Five - If reliability cncerns develp during the executin f the time errr crrectin, the PJM dispatcher ntifies the Intercnnectin Time Mnitr and requests that the time errr crrectin be immediately terminated. Similarly, if reliability cncerns are anticipated with a scheduled time errr crrectin, the PJM dispatcher ntifies the Intercnnectin Time Mnitr t cancel the scheduled time errr crrectin. 3.3 External Transactins Scheduling Overview f External Transactin Scheduling Market participants that wish t transact energy in-t, ut-f r thrugh the PJM RTO are required t make their requests t PJM via the NERC E-Tagging sftware. These requests must be cnsistent with the mre restrictive f either NERC Standard INT-001 (Interchange Transactin Tagging) r the PJM External Transactin Scheduling rules cntained within this manual. The NERC E-Tagging sftware interfaces with PJM s ExSchedule sftware t create an interface that bth PJM Market participants as well as PJM Transactin Crdinatrs can use t evaluate and manage external transactins that affect the PJM RTO. Based n market participant feedback, PJM has enhanced the ExSchedule tl t utilize NERC tags as the surce fr its external scheduling data. This change was dne primarily t ease the amunt f data entry required t submit external schedules in PJM as well as cnfrm t general industry trends tward the use f the NERC tag as a schedule. This enhancement aids PJM in handling the increased number f external transactins presented by integratin f ther cntrl areas in the PJM RTO. Market participants are n lnger required t enter schedule data in bth the ExSchedule system and n a NERC tag as the NERC tag data is utilized by ExSchedule as the schedule. This change highlights an issue f data respnsibility because f the nature f E-tagging and the fact that PJM nw uses infrmatin entered n an E-tag as a schedule. Market participants scheduling in PJM are respnsible fr ensuring that data n PJM s ExSchedule is cnsistent with that which they desire t be their energy schedule. The cntinuity f the tagging prcess dictates that PJM receives its tag data in cmpleted frm frm its tag authrity, as it was entered by market participants. In rder t ensure this delivery f data is cmplete and accurate, the market participants are respnsible fr cnfirming the data in PJM s ExSchedule t ensure it is cnsistent with that which they desired fr their energy schedule. This cnfirmatin can take place by simply lking at the tag data thrugh the ExSchedule user interface, r by viewing custmer reprts which are made available thrugh ExSchedule. An imprtant aspect f scheduling external transactins in PJM is finding a start and end time t transact energy while respecting the PJM ramp limits impsed fr security (see Ramp Limits sectin fr additinal infrmatin n PJM s ramp limits). PJM allws market participants t reserve ramp in advance f cmpleting their transactins via the ExSchedule applicatin. This is an ptinal step in making external transactin requests, as the NERC E-Tag serves as the actual request fr scheduling in PJM. In cases where the NERC E-tag des nt have the required fields t request a PJM market specific transactin (e.g. dispatchable, tw-settlement etc.) the ExSchedule applicatin will be Revisin: 38, Effective Date: 04/20/2018 PJM

28 Sectin 3: System Cntrl used in cncert with the NERC E-tag (see Entering Dispatchable Schedules and Entering Tw-settlement transactins sectins). 3.4 External Transactin Scheduling Business Rules This sectin will utline the External Transactin Business Rules that are required by PJM. This sectin will include: PJM Cntact Infrmatin External Transactin Timing Requirements General Infrmatin Data Requirements Ramp Limits OASIS Business Rules Entering Ramp Reservatins Entering Schedules Entering Real-Time with Price Schedules Entering Tw-Settlement Schedules Transactin Validatins, Verificatin and Checkut PJM Cntact Infrmatin The fllwing numbers can be used t cntact PJM regarding External Energy Transactins: Scheduling Fax number Day-Ahead Scheduling phne number , and Hurly Scheduling phne number ExSchedule Htline (used t reprt issues, r t ask questins during nrmal business hurs) PJM Helpdesk (used t reprt technical issues during nn-business hurs) External Transactin Timing Requirements The fllwing timing requirements are impsed by PJM fr the submissin f ramp reservatins: Ramp reservatins can be made up t 30 minutes prir t the scheduled start time fr hurly transactins. Ramp reservatins can be made up t 4 hurs prir t start time fr transactins that are mre than 24 hurs in duratin. Ramp reservatins utilizing the Real-Time with Price ptin must be made prir t 1200 nn (EPT) ne day prir t start time. Revisin: 38, Effective Date: 04/20/2018 PJM

29 Sectin 3: System Cntrl Ramp reservatins expire if they are nt used. The fllwing timing requirements are impsed n ramp reservatins that are nt scheduled against: Fr ramp reservatins less than r equal t 24 hurs in duratin: If the reservatin is submitted 1 hur prir t the start f the schedule r less, the reservatin will be held in Pending Tag status fr 10 minutes. If the reservatin is submitted mre than 1 hur, but less than 4 hurs prir t the start f the schedule, the reservatin will be held in Pending Tag status fr 15 minutes. Reservatins that are less than 24 hurs in duratin and submitted 4 r mre hurs prir t the start f the schedule will be held in Pending Tag status fr 90 minutes. Reservatins made n a day-ahead basis will expire at 1430 EPT, ne day prir t the start f the schedule. Nte that a ramp reservatin will nt be split int separate days, s if a ramp reservatin is made fr multiple days, and nt scheduled against, and if the start time fr the multi-day reservatin is the next day, the entire reservatin will expire. Ramp reservatins that have been placed In-Queue will expire if sufficient ramp rm des nt becme available. The fllwing timing requirements are impsed n ramp reservatins that have been placed In-Queue: Reservatins that are 24 hurs r less in duratin will be held in In-Queue status until 30 minutes prir t the start f the schedule. Reservatins that are greater than 24 hurs in duratin will be held in In-Queue status until 5 hurs prir t the start f the schedule. The fllwing timing requirements are impsed by PJM fr the submissin f Schedules. Schedules are submitted t PJM by submitting a valid NERC Tag. (The schedule is cnsidered submitted when the NERC Tag is received by the PJM Tag Apprval Service, nt when it is submitted by the market participant s Tag Agent sftware): Schedules can be submitted up t 20 minutes prir t the scheduled start time fr hurly transactins. Schedules can be submitted up t 4 hurs prir t the scheduled start time fr transactins that are mre than 24 hurs in duratin. Fr a schedule t be included in PJM s Day-Ahead checkut prcess, they must be implemented by 1400 (EPT) ne day prir t start f schedule. Schedules utilizing the Real-Time with Price ptin must be submitted prir t 1200 nn (EPT) day prir t start time. Schedules utilizing FIRM Pint-T-Pint transmissin service must be submitted by 1000 (EPT) ne day prir t start f schedule. Transactins submitted after 1000 (EPT) ne day prir will be accmmdated if practicable. The fllwing timing requirements are impsed by PJM fr the submissin f Tw-Settlement Transactins: All Tw-Settlement transactins must be submitted by 1200 nn (EPT) ne day prir t start time. Revisin: 38, Effective Date: 04/20/2018 PJM

30 Sectin 3: System Cntrl General Infrmatin External ffers can be made either n the basis f an individual generatr (resurce specific ffer) r an aggregate f generatin supply (aggregate ffer). PJM will nly accept the transactin if submitted by a member cmpany. Transmissin reservatins that are nt used due t canceled spt market ffers will be subject t transmissin charges as apprpriate. PJM des nt accept bids where the PJM Interchange Market is identified as bth the surce (GCA) and sink (LCA). PJM des nt accept ffers fr resurces cmmitted t supply perating reserves t anther Balancing area. PJM des nt duble cunt resurces internal t PJM fr perating reserves. If energy is being ffered frm a resurce t PJM and is already included in the PJM perating reserves, the energy can be accepted, but des nt participate in PJM perating reserves accunting. Offers nt prperly submitted are rejected. The PJM member is ntified f the reasn fr rejectin and the PJM member may then take actin t submit a new ffer Data Requirements Market participants are expected t keep PJM infrmed f all external transactins that invlve the peratin f the PJM RTO. The fllwing infrmatin is submitted t PJM via the market participants E-Tag agent service and/r ExSchedule: Valid NERC E-Tag Valid transactin path Start date befre end date Start and end times in the future Requested MW prfile Valid transmissin (see OASIS Business Rules fr mre infrmatin) Price assciated with transactin (if utilizing the Real-Time with Price ptin) Ramp Limits PJM validates all external transactin requests against a net interchange ramp. The ramp limit is cnfigurable by PJM dispatch based n perating cnditins. There are tw separate ramps that are evaluated, a PJM Net Interchange Ramp, and a NYISO Interchange Ramp. PJM Variable Ramp At n time, can the difference in the net interchange be greater than the ramp designated by the PJM dispatch at any given 15 -minute interval. Ramp rm is allcated n a first cme, first serve basis. Refer t Exhibit 7 fr a ramp example t see hw the ramp is calculated fr any given 15 - minute interval. NYISO 1000 MW Ramp PJM als mnitrs a ± 1000 MW ramp with the NY ISO. At n time can the difference in the interchange between NY and PJM be greater than ± 1000 MW at any 15- minute interval. Ramp rm fr NY transactins is allcated n a first cme, first Revisin: 38, Effective Date: 04/20/2018 PJM

31 Sectin 3: System Cntrl serve basis. NY transactins submitted t PJM will be evaluated against bth the PJM ramp and the NY ISO ramp. Exhibit 7: Example Ramp Calculatin OASIS Business Rules All external transactin requests require a CONFIRMED transmissin reservatin frm the PJM OASIS. PJM ffers several transmissin prduct types, such as hurly, daily, weekly, mnthly, yearly, n and ff-peak, nn-firm, firm and netwrk transmissin. PJM als ffers the pprtunity t state whether r nt the market participant is willing t pay cngestin. These, and additinal ptins, are further explained in the PJM Reginal Practices dcument, which can be fund n the PJM OASIS hme page at On sme ccasins, due t PJM ramp rules, market participants are required t shift their energy requests. If the market participant shifts their energy up t ne hur in either directin, they are nt required t purchase additinal transmissin. Likewise, if the market participant chses t fix their ramp vilatin by extending the duratin f the transactin, they d nt have t purchase additinal transmissin if the ttal MWh capacity f the transmissin request is nt exceeded. Fr graphical representatins f these scenaris, refer t Exhibit 8 thrugh Exhibit 11. Revisin: 38, Effective Date: 04/20/2018 PJM

32 Sectin 3: System Cntrl Exhibit 8: On-Peak Transmissin Service Over 16 Hur Perid Example Exhibit 9: On-Peak Transmissin Service Over 18 Hur Perid Example Revisin: 38, Effective Date: 04/20/2018 PJM

33 Sectin 3: System Cntrl Exhibit 10: Off-Peak Mnday-Friday Transmissin Service Example Exhibit 11: Off-Peak Saturday-Sunday Transmissin Service Example Frequently Asked Questins (regarding n-peak and ff-peak energy scheduling): Revisin: 38, Effective Date: 04/20/2018 PJM

34 Sectin 3: System Cntrl (Q1) A market participant has reserved ff-peak daily transmissin fr Wednesday, but ramp rm is nt available at 07:00 r 23:00. (A1) Tw pssible slutins are 1) the energy may be scheduled frm 00:00 t 08:00 r 2) the energy may be scheduled frm 00:00 t 07:15 and frm 23:15 t 24:00. (Q2) A market participant has reserved n-peak weekly transmissin. Ramp rm is available frm 07:00 t 23:00 Tuesday thrugh Friday, but ramp rm is nt available at 07:00 r 23:00 n Mnday. (A2) The energy may be scheduled 07:00 t 23:00 Tuesday thrugh Friday. One slutin t the Mnday ramp limit is t schedule the energy frm 06:45 t 22: Entering Ramp Reservatins Each PJM Member Cmpany that is authrized t d business in PJM s energy market is given an ExSchedule accunt. It is in the ExSchedule applicatin that ramp reservatins are made. Ramp reservatins are an ptinal step in scheduling transactins in PJM. A ramp reservatin can be made t hld ramp rm while market participants cmplete their scheduling respnsibilities. Ramp reservatins are then assciated n the NERC Tag when the market participant wishes t submit the schedule. The ramp reservatin is validated against the submitted NERC Tag t ensure the energy prfile and path matches. Ramp reservatins are generally used t ensure the ability t schedule prir t purchasing transmissin r making ther ptentially cst affecting decisins. T make a ramp reservatin, the market participant enters the ExSchedule applicatin, and navigates t the Ramp Reservatin screen. On this screen, the market participant enters the path fr which they are interested in transacting energy, their energy prfile and any ther unique infrmatin that may apply t a schedule (i.e. special exceptins, ntes, utside ID s, internal naming cnventins etc.). Upn submissin f a ramp reservatin, PJM validates the infrmatin against ramp availability. If it passes the current ramp limits, the ramp reservatin will pass, and will mve int a status f pending tag. At this pint, the market participant is hlding a valid reservatin that can then be assciated n a NERC Tag fr scheduling Entering Schedules Market participants enter schedules in PJM by submitting a valid NERC Tag. As nted in the previus sectin, if the market participant hlds a ramp reservatin in the status f Pending Tag, they can assciate the ramp reservatin n the NERC Tag. This is dne by placing the ramp reservatin in the miscellaneus clumn n the PJM Transmissin Prvider line, f the physical segment prtin f the NERC Tag. If n ramp reservatin was made prir t scheduling, a NERC Tag can be submitted withut a reservatin. NERC Tags that are submitted withut a ramp reservatin will autmatically have a ramp reservatin created that matches the energy prfile and path f the NERC Tag. This newly created reservatin will be evaluated against ramp, and an apprval r denial will be made based n the validatin. If there is enugh ramp rm, PJM will cntinue with ther validatins (See Transactin Verificatin and Checkut ). If all validatins pass, an apprval message will be sent t the NERC Tag, and upn IMPLEMENTATION f the NERC Tag, the transactin will be scheduled by PJM. Because f the nature f NERC tagging, it is pssible fr the market participant wh enters a NERC tag t nt be cnsistent with the market participants listed fr each TP segment n Revisin: 38, Effective Date: 04/20/2018 PJM

35 Sectin 3: System Cntrl a particular tag. In this instance, the financially respnsible party (FRP) entering the tag is effectively acting n behalf f ther market participants that are listed. Because PJM will nw be identifying a NERC tag as a market participant s schedule, it will be necessary fr thse market participants wh have had a tag entered n their behalf t acknwledge this tag thrugh the ExSchedule Entering Real-Time with Price Schedules Real-Time with Price schedules differ frm ther schedules in that an actin must be made in ExSchedule in additin t the submissin f a NERC Tag. T enter a Real-Time with Price schedule, the market participant must first make a ramp reservatin in ExSchedule using the Real-Time with Price tab in the ntebk sectin f the ramp reservatin screen. In additin t the infrmatin entered fr a Real-Time schedule, market participants are als required t enter a price assciated with each energy blck. Upn submissin, the Real-Time with Price request will autmatically mve t the Pending Tag status, as Real-Time with Price schedules d nt hld ramp. Once the infrmatin is entered in ExSchedule, a NERC Tag must be submitted with the ramp reservatin assciated n the NERC Tag. This is dne by placing the ramp reservatin in the miscellaneus clumn n the PJM Transmissin Prvider line, f the physical segment prtin f the NERC Tag. Fr Real-Time with Price schedules, the NERC Tag energy prfile must match exactly fr the tag t be apprved Entering Tw-Settlement Schedules Market participants can submit Tw-Settlement schedules t the emarket applicatin thrugh ExSchedule. These schedules d nt require a NERC tag, as they are nly financial bligatins, and are nt cnsidered physical schedules fr actual flw. Tw-Settlement schedules are submitted using the Tw-Settlement tab in the ntepad sectin f the ramp reservatin screen. Tw-Settlement schedules require an OASIS number t be assciated upn submissin. The path is identified n the OASIS reservatin. In additin t the selectin f OASIS and pricing pints, the market participant must enter their energy prfile. The ptin t chse fixed, dispatchable and up-t are als displayed in the ntepad sectin. The type fixed acts as a price taker, dispatchable sets a flr r ceiling price criteria fr acceptance and up-t sets the maximum amunt f cngestin the market participant is willing t pay fr acceptance in the Tw-Settlement Market. Graphing energy is dne the same way as a Real-Time r Real-Time with Price request Transactin Validatins, Verificatin and Checkut Transactins must pass specific validatins and evaluatins prir t being scheduled. The fllwing validatins and evaluatin and checkut prcedures are dne t ensure accurate infrmatin and reliable scheduling in PJM: Validatins On submissin, the fllwing validatins are perfrmed n ramp reservatins: Path Identified Stp time after start time Energy Prfile Identified Revisin: 38, Effective Date: 04/20/2018 PJM

36 Sectin 3: System Cntrl Price assciated with Energy Prfile (nly applicable fr Real-Time with Price) Ramp Availability (nt applicable fr Real-Time with Price) Timing Requirements are met fr submissin deadlines On submissin, the fllwing validatins are perfrmed n NERC Tags: Syntax validatin (See NERC Tagging Plicy fr cmplete list f syntax validatins fr NERC Tags) Path n NERC Tag matches ramp reservatin (if identified) and OASIS path Timing requirements are met fr submissin deadlines PJM Lss type must be financial (FIN) Ramp availability (if n ramp reservatin is identified) OASIS validatin fr valid OASIS, valid path, instantaneus capacity, ttal capacity, datetime, pririty and vertical stacking (nt allwed) Tken and Value fields (in miscellaneus clumn) have valid inputs FRP check On submissin, the fllwing validatins are perfrmed fr tw settlement requests: Path identified Timing requirements are met fr submissin deadlines OASIS validatin fr valid OASIS, ensure that the reservatin is willing t pay cngestin, OASIS is valid fr perid cvered by the tw-settlement cntract and capacity checks Pricing pint(s) have been identified Stp time is after start time Energy prfile is identified Price is assciated fr energy prfile (fr dispatchable ptin nly) Cngestin amunt is identified fr energy prfile (fr up-t cngestin ptin nly) Real-Time Evaluatin and Checkut If all validatins pass n a Real-Time schedule, PJM will apprve the tag. Once the tag is apprved by all parties assciated n the tag and the status f the tag becmes IMPLEMENTED, the schedule will be ready fr the Balancing Area t Balancing Area Checkut. If during the Balancing Area t Balancing Area checkut, bth parties agree t the interchange n the NERC Tag, the schedule will flw. Real-Time with Price Evaluatin and Checkut Real-Time with Price schedules are verified differently than Real-Time schedules. Real-Time with Price schedules are evaluated hurly t determine if they will be laded r nt fr the upcming hur. This evaluatin is dne by the PJM Generatin Dispatcher. If the dispatcher feels that the ecnmics fr the schedule warrant the transactin t be laded r unladed, Revisin: 38, Effective Date: 04/20/2018 PJM

37 Sectin 3: System Cntrl they will infrm the transactin crdinatr t lad r unlad the cntract. This evaluatin is based n a very cnservative apprach, and wrks similar t the way the generatin dispatcher wuld call n r ff generatin. In additin t the ecnmics f the transactin, the generatin dispatcher may als take int cnsideratin the ramp availability fr the lading r unlading f the schedule. Since Real-Time with Price schedules d nt hld ramp rm, there may be times where the ecnmics warrant a schedule t be laded, but due t security issues related t ramp, the schedule will nt be called n t flw. Once a Real-Time with Price schedule has been called n t flw, a relad request will be issued by the PJM Transactin Crdinatr. If all external parties apprve the relad request, and it passes the Balancing Area t Balancing Area checkut prcess, the schedule will flw. Tw-Settlement Evaluatin and Checkut Fr Tw-Settlement scheduling, ExSchedule serves nly as an interface t the emarket applicatin. Tw-Settlement transactins are evaluated by the PJM Markets Department, and the results are fed back t ExSchedule t allw market participants t view the results. There is n Checkut perfrmed n tw-settlement schedules, as they are cnsidered financially binding transactins, nt physical schedules. 3.5 Inadvertent Interchange Hurly inadvertent interchange is defined as the difference between hurly net actual interchange and hurly net scheduled interchange f a Balancing Authrity. Attachment E prvides additinal detail regarding BAL standard reprting requirements. It is caused by any f the fllwing factrs: Bias respnse t frequency deviatins ccurring n the intercnnected system Metering errrs (methds f crrectin details are discussed in PJM Manual fr Operating Agreement Accunting (M28), Sectin 11, Metering Recnciliatin Accunting. Inability f system generatin t exactly match lad and/r net interchange schedule changes Hurly inadvertent interchange may accumulate in a balancing area as a megawatt-hur credit r debit. It is accunted fr each mnth. PJM maintains a recrd f the PJM RTO s accumulated inadvertent interchange fr bth On- and Off-Peak Perids as required by the applicable NERC and NAESB standards. Over time, PJM attempts t minimize the amunt f accumulated inadvertent interchange. This is accmplished by cntinually mnitring and crrecting fr inadvertent interchange. The prtin f inadvertent interchange caused by frequency bias is self-cmpensating if n additinal actin is taken by PJM dispatcher. This is because n the average, frequency deviatins are lw as ften as they are high. In rder fr time errr t average zer, the inadvertent interchange that flws as the result f frequency bias cntributin is balanced autmatically by the tie-line bias cntrl Crrecting fr Accumulatin f Inadvertent Interchange It is the respnsibility f PJM dispatcher t crrect fr the accumulatin f inadvertent interchange. Revisin: 38, Effective Date: 04/20/2018 PJM

38 Sectin 3: System Cntrl PJM Actins The reductin f an accumulatin (n an On-Peak Perid r Off-Peak Perid basis as defined abve) f inadvertent interchange is accmplished by ne f the fllwing tw methds: Unilateral Payback Inadvertent Interchange accumulatins may be paid back unilaterally by cntrlling t a target f nn-zer ACE. Cntrlling t a nn-zer ACE ensures that the unilateral payback is accunted fr in the CPS calculatins. The unilateral payback cntrl ffset is limited t PJM s L10 limit and shall nt burden the Intercnnectin. Bilateral Payback Bilateral Payback is scheduled with anther Balancing area and is accmplished as fllws: Inadvertent interchange accumulatin may be reduced by scheduling a crrectin with any adjacent balancing area, prvided they have an accumulatin in the ppsite directin. The amunt f schedule established by PJM dispatcher is determined by the fllwing factrs: Amunt f Accumulated inadvertent interchange Current net interchange schedule in effect Current state f the PJM Balancing area with respect t lad and transmissin facilities If a schedule cannt be established with the adjacent balancing area, crrectin f inadvertent interchange accumulatins may be scheduled with a remte Balancing area, prvided that the intervening Balancing area dispatchers are advised f such schedules and are agreeable. There may be times when the adjacent balancing area desires t establish a schedule t reduce inadvertent interchange accumulatins with Balancing areas ther than the PJM RTO Measurements and Cmpliance In accrdance with NERC INT Standards, PJM will crdinate interchange transactins per the respective established Operating Agreements. PJM Members Actins Nne Revisin: 38, Effective Date: 04/20/2018 PJM

39 Sectin 4: Prviding Ancillary Services Sectin 4: Prviding Ancillary Services Welcme t the Prviding Ancillary Services sectin f the PJM Manual fr Balancing Operatins. In this sectin yu will find the fllwing infrmatin: Hw PJM mnitrs and restres reserves (see Reserves ). Hw PJM determines and assigns Regulatin (see Regulatin ). Hw a generating resurce is tested and qualified fr Regulatin service (see Qualifying Regulating Resurces ). Hw PJM ensures and mnitrs Black Start Service (see Black Start Service ). 4.1 Reserves Reserves are the additinal capacity abve the expected lad. Scheduling excess capacity prtects the pwer system against the uncertain ccurrence f future perating events, including the lss f capacity r lad frecasting errrs Mnitring Reserves PJM is respnsible fr mnitring and adjusting the reserves t ensure cmpliance with NERC, SERC, and RFC BAL standards fr the PJM Balancing Area. On a daily basis the PJM dispatcher perfrms an Instantaneus Reserve Check (IRC) prir t each peak r mre ften as system cnditins require t determine if adequate reserves exist t meet the PJM Reserve Requirements. An IRC may be taken mre frequently if system cnditins dictate. When the PJM Generatin dispatcher requests an IRC, member dispatchers reprt the infrmatin via edart. If edart is unavailable, member dispatchers reprt the infrmatin directly t the PJM Generatin dispatcher. Attachment A presents and describes the PJM IRC reprt. An IRC prvides PJM dispatcher with an indicatin f the actual reserves that are available at that pint in time. By cnducting an IRC at strategic pints during the day, PJM dispatcher establishes benchmarks between which the actual reserve can be estimated. Since system cnditins can change very rapidly, the IRC is nly an indicatin f the actual reprted reserves at that pint in time. PJM dispatcher uses the results f the IRC t determine if reserve shrtages exist and what, if any, Emergency Prcedures shuld be declared t supplement the electrnic reprting f reserves thrugh the EMS systems. When the PJM Net Tie Deviatin indicates under generatin, the Synchrnized Reserve ttal is adjusted dwnward by the amunt f the Net Tie Deviatin t reflect the PJM Balancing area s generatin deficiency. Cnversely, when the PJM Net Tie Deviatin indicates ver generatin, the Synchrnized Reserve ttal is adjusted upward by the amunt f the Net Tie Deviatin t reflect the PJM Balancing area s generatin excess. Therefre when pssible PJM dispatcher requests an IRC when the ACE and Net Tie Deviatin is clse t zer MW. PJM Actins Step One - Using the PJM ALL-CALL, PJM dispatcher requests an IRC. Step Tw - Upn receipt f all Generatin Owner reprts, PJM dispatcher determines the fllwing values: PJM Operating Reserve Revisin: 38, Effective Date: 04/20/2018 PJM

40 Sectin 4: Prviding Ancillary Services Adjusted Primary Reserve versus Primary Reserve Requirement. Adjusted Synchrnized Reserve versus Synchrnized Reserve Requirement. Area Synchrnized Reserve levels Step Three - PJM dispatcher cmpares the values calculated in Step Tw t the crrespnding bjectives and then determines whether reserve deficiencies exist. Step Fur - Using the PJM edart, PJM dispatcher reprts the results f the IRC t the Generatin Owners/Transmissin Owners. Step Five Where applicable, PJM dispatcher fllws up with the Generatin Owner r PJM Supprt Persnnel arund any Adjusted Values that stem frm invalid Market data. PJM Member Actins Step One The Generatr Owner respnds t an IRC request as requested by PJM. Step Tw - The Generatin Owners prmptly reprt the fllwing values n a discrete unit by unit level t PJM via the edart IRC applicatin. If edart is unavailable, the values are reprted directly t PJM dispatcher via telephne: Synchrnus Reserve Regulating Synchrnus Reserve Nn-Regulating Nn-Synchrnized (Quick-Start) Reserves Secndary Reserve Beynd Secndary Step Three Where applicable, Generatin Owner adjusts any individual generatin values (such as EcMax, ramp rate, availability) that are causing a mismatch between PJM and Generatin Owner calculatins. See Attachment A fr reserve calculatins and IRC reprting requirements Lading Reserves During disturbance cnditins (i.e., lss f generatin and/r transmissin resurces), synchrnized reserve and, t the extent necessary, Nn-Synchrnized Reserves are used t recver the ACE s that tie line schedules are maintained. Depending n system cnditins, the manual methds may be used t accmplish this recvery. Based n system cnditins and the ability f regulatin t recver, PJM peratrs will evaluate the need t implement its Cntingency Reserve upn the cntingent lss f generatin equal t 80% r mre f its mst severe single cntingency. Manual Methd Includes raising the Lambda signal manually and cmmitting additinal equipment. PJM Actins PJM dispatcher determines the apprximate amunt and lcatin f lst generatin, and the amunt f Synchrnized Reserve that must be laded t: Revisin: 38, Effective Date: 04/20/2018 PJM

41 Sectin 4: Prviding Ancillary Services Crrect fr the sudden lss f generatin lcated within the PJM Balancing area (as indicated by the PJM Balancing area s ACE and system frequency deviatins Return interchange transfers r ther thermal r reactive limitatins t within the apprpriate limits Implement 100% synchrnized reserves and /r cntingency reserves (quick start) if the unit lss > 80% f the largest unit cntingency and there is insufficient regulatin and ecnmic generatin t recver the ACE within DCS (BAL standards). PJM dispatcher requests the Resurce Owner, via the PJM ALL-CALL, t lad a percentage (25%, 50%, 75%, r 100%) f the Synchrnized Reserve (typically 100%) in the apprpriate cntrl zne(s). PJM has several Synchrnized Reserve market areas. The dispatchers will select the mst effective respnse respecting the requirements f the reginal reserve sharing prgrams in which PJM is a participant. If specific equipment is excluded frm the request, PJM dispatcher calls the apprpriate Resurce Owner immediately fllwing the PJM ALL-CALL message. If transmissin limits exist r may be caused by lading Synchrnized Reserve and Nn-Synchrnized Reserve in certain gegraphic areas r cntrl znes, PJM dispatcher specifies the areas r cntrl znes that are t be included in the request fr Synchrnized Reserve. If PJM dispatcher anticipates that lading f Synchrnized Reserve may cntinue fr lnger than ten minutes, PJM dispatcher includes this statement in the PJM ALL-CALL message. PJM Dispatcher cntacts external systems t implement Shared Reserves (as required). PJM dispatcher als requests the lading f an apprpriate amunt f nn-synchrnized reserve (as required). If PJM dispatcher determines that the Synchrnized Reserve that is being laded is nt sufficient t recver the system frm a facility malfunctin r failure, PJM dispatcher requests synchrnized Supplemental Reserve t be laded (as required). As the Resurce Owner dispatchers lad the reserves, PJM dispatcher evaluates the effect. PJM dispatcher surveys the resurces laded and determines generatin that is needed t remain laded and the replacement resurces that can be returned t nrmal status s that the PJM Balancing area lad can be ecnmically carried at a new price level. PJM dispatcher cancels the requests, as apprpriate. PJM Members Actins Resurce wners that elect t use their assets t respnd t an event shall, withut regard t price and as quickly as pssible, lad the requested percentage f Synchrnized Reserve and Nn-Synchrnized Reserve. PJM Members respnding t the event will cntinue t lad resurces until directed by PJM dispatcher t discntinue. Resurces prviding regulatin service shuld nly prvide Synchrnized Reserves t the extent that they can quickly resume accurate regulatin cntrl fllwing the event. Revisin: 38, Effective Date: 04/20/2018 PJM

42 Sectin 4: Prviding Ancillary Services Upn cancellatin, the generatin wner dispatchers unlad the Synchrnized and Nn- Synchrnized Reserve, as directed by PJM dispatcher. 4.2 Shared Reserves Shared Reserve Activatin is a prcedure between the Nrtheast Pwer Crdinating Cuncil (NPCC) and the PJM Mid-Atlantic Cntrl Zne (frmer MAAC regin member cmpanies) t jintly activate a prtin f their ten-minute reserve fllwing any f the fllwing situatins: Generatin r energy purchase cntingencies equal t r greater than 500 MW (300 MW fr Maritimes) ccur under cnditins where activatin assists in reducing a sustained lad/generatin mismatch Tw r mre resurce lsses belw 500 MW (300 MW fr Maritimes) within 1 hur f each ther. Perids f significant mismatch f lad and generatin The participating systems in NPCC shared reserves are the ISO New England (ISO NE), the New Yrk Independent System Operatr (NYISO), PJM East Cntrl Zne, Maritimes, New Brunswick and Independent Electricity Market Operatr (IESO frmerly IMO f Ontari). The bjective is t prvide faster relief f the initial stress n the intercnnected transmissin system. The NPCC Operating Reserve Plicy and the Operating Reserve Plicies f all NPCC areas and f the PJM Mid-Atlantic Cntrl Zne are nt changed by any f the prvisins f this plan. The NYISO acts as the plan crdinatr. PJM Actins If the lss f generatin/purchase is lcated in the NPCC: The NYISO supervising dispatcher assigns the PJM Mid-Atlantic Cntrl Zne a share f reserve pick-up. NYISO indicates the amunt f participatin. PJM dispatcher manually adjusts regulatin, lads generatin, r Synchrnized Reserve in selected areas r acrss the entire PJM Mid-Atlantic Cntrl Zne based n transfer limitatins. This assistance is implemented at a zer time ramp rate immediately fllwing allcatin ntificatin. Respnse by assisting balancing areas shall respnd as quickly as pssible, assuming the same bligatin as if the cntingency ccurred within the balancing area. This shuld be implemented via manually adjusting regulatin if pssible. PJM dispatcher ntifies the NYISO supervising dispatcher that PJM Mid-Atlantic Cntrl Zne's reserve pick-up is cmpleted. When the cntingent system satisfies its ACE requirements, they ntify the NYISO supervising dispatcher, wh requests all participants t cancel their shared reserve allcatins (nrmally ten minutes, but n lnger than 30 minutes) when the generatr lss is replaced. The assistance prvided by the PJM Mid-Atlantic Cntrl Zne is ramped ut at a ten-minute ramp rate. Revisin: 38, Effective Date: 04/20/2018 PJM

43 Sectin 4: Prviding Ancillary Services When the PJM Mid-Atlantic Cntrl Zne cmpletes its reserve pick-up, PJM dispatcher ntifies the Lcal Cntrl Centers t cancel Synchrnized Reserve lading. If the lss f generatin/purchase is lcated in the PJM Mid-Atlantic Cntrl Zne: PJM dispatcher activates 100% Synchrnized Reserves and ntifies the NYISO supervising dispatcher f generatin lss, and includes any special requests. Fr example, fr the lss f a large eastern unit, PJM dispatcher may request IMO nt t participate. The NYISO supervising dispatcher activates shared reserves and ntifies PJM dispatcher, via cnference call, f the ten-minute reserve amunt that NPCC members cntribute. PJM dispatcher terminates shared reserves (nrmally ten minutes, but n lnger than 30 minutes) when the generatin lss is replaced Payback Currently, payback mwhs are nt required fr NPCC Shared Reserve Events. PJM Member Actins Nne Restring Reserves By cntinuusly mnitring reserves, PJM dispatcher ensures that reserve levels are maintained in accrdance with NERC BAL Standards. During nrmal peratin, PJM dispatcher lads the system based n ecnmy while mnitring the available reserves. If, hwever, based n the best judgment f PJM dispatcher after evaluating the results f the IRC, reserve deficiencies exist n the system, the fllwing actins are taken, dependent n the deficiency: Synchrnized Reserve Deficiency Nrmally, restratin f Synchrnized Reserve is accmplished by cndensing CTs, ntifying interruptible lad resurces, r lading Nn- Synchrnized Reserve r Supplemental Reserve t a minimum level t prvide sufficient Synchrnized Reserve r t the ecnmic energy level t allw equipment (i.e., steam units) t back dwn t prvide sufficient Synchrnized Reserve. Primary Reserve Deficiency When PJM dispatcher is assured that the Synchrnized Reserve bjective is cvered, PJM dispatcher attempts t eliminate any Primary Reserve deficiency. Restratin is accmplished by any cmbinatin f the fllwing actins: Lading Supplemental Reserve t Primary Reserve status r prviding additinal Primary Reserve n ther equipment. Bringing additinal equipment which is available but nt scheduled t perate int the Primary Reserve status. That prtin f the Primary Reserve deficiency that is due t an adjustment t the internal PJM Primary Reserve as a result f a net nn-capacity interchange scheduled int PJM can be tlerated prvided system reliability is nt degraded. On these ccasins, PJM dispatcher ensures that sufficient shutdwn CT and/r hydr capability are readily available t cver the amunt f the deficiency. Revisin: 38, Effective Date: 04/20/2018 PJM

44 Sectin 4: Prviding Ancillary Services Operating Reserve Deficiency When PJM dispatcher is assured that bth the Synchrnized and Primary Reserve bjectives are cvered, PJM dispatcher attempts t eliminate any deficiency in Operating Reserve. Sufficient reserve is maintained fr cverage f lad-frecast uncertainty and prbable additinal failure r malfunctin f generating equipment. The decisin f whether t replenish Operating Reserve is based n PJM dispatcher s best judgment. PJM dispatcher may chse t replenish all, sme, r nne f the Operating Reserve during the perating day. 4.3 VACAR Reserve Sharing PJM, n behalf f Dminin-Virginia Pwer, participates in the VACAR reserve sharing grup, which cnsists f Dminin-Virginia Pwer, Duke Pwer, Suth Carlina Electric and Gas, Prgress Energy-Carlinas, and Suth Carlina Public Service Authrity. The purpse f the agreement is t share reserves t enhance reliability and t decrease the cst f maintaining reserves fr each system. Upn the telephne request f a member, the respnding member will prvide reserve energy fr a perid f up t 12 hurs t supprt the needs f the requesting member. PJM Actins Respnd t requests fr assistance due t a cntingency event, as requested by anther member, by scheduling delivery f VACAR reserve energy t the requesting member fr delivery at the brder between PJM and the CPL balancing area. Request the scheduling f VACAR reserve energy frm ther VACAR members if needed. Energy will be received at the CPL balancing area brder with PJM. Dminin-Virginia Pwer Actins Perfrms billing and prvide cmpensatin, as applicable, fr reserve energy received by PJM called fr n behalf f Dminin r prvided by PJM n behalf f Dminin t anther VACAR member. 4.4 Regulatin The PJM RTO is a single Balancing Area cnsisting f multiple Cntrl Znes. Resurce wners prviding Regulatin are required t cmply with standards and requirements f Regulatin capability and dispatch, as described in this sectin. PJM requires that all regulating generatin resurces be equipped with an Autmatic Generatr Cntrl (AGC) scheme t receive, prcess and respnd t regulatin signals. Demand respnse resurces prviding regulatin must have a similar cntrl system PJM RTO Regulatin Market Obligatins The Regulatin Requirement fr the PJM RTO can be fund in this manual in Sectin Determining Regulatin Assignment. The resurces assigned t meet this requirement must be capable f respnding t the AR signal immediately, achieve their bid capability within five minutes and must increase r decrease their utputs at the ramping rates that are specified in the data that is submitted t PJM. Revisin: 38, Effective Date: 04/20/2018 PJM

45 Sectin 4: Prviding Ancillary Services The PJM RTO requires that the Regulatin range f a resurce is at least twice the amunt f Regulatin assigned, and that the resurce can symmetrically prvide the ttal amunt f Regulatin assigned (a full raise and lwer f assigned regulatin frm set-pint) as illustrated in Exhibit 12 belw. Demand Respnse resurces prviding Regulatin are required t fulfill the regulatin range requirements withut injecting energy int the Bulk Electric System (BES). Exhibit 12: Assigned Regulatin and Regulatin Range requirements A resurce capable f autmatic energy dispatch that is als prviding Regulatin reduces its energy dispatch range by the regulatin assigned t the resurce. This redefines the energy dispatch range f that resurce. (The resurce s assigned regulatin subtracted frm its regulatin maximum frms the upper limit f the new dispatch range, while the resurce s regulatin minimum plus its assigned regulatin frms the lwer limit f the new dispatch range.) Exhibit 13 illustrates the limit relatinship. Revisin: 38, Effective Date: 04/20/2018 PJM

46 Sectin 4: Prviding Ancillary Services Exhibit 13: Limit Relatinship fr Regulatin Resurce wners wishing t prvide Regulatin in the PJM balancing area are required t submit ffer data as detailed in Sectin 3.2 f Manual 11 Energy & Ancillary Services Market Operatins Regulatin Signals Resurce wners will receive frm PJM: Assigned Regulatin (ARegA r ARegD) This is the assigned hurly regulatin quantity (MW) that is cleared frm the regulatin market system. It is assigned fr each individual resurce that is qualified t regulate in the PJM market. This value, althugh typically static fr the hur, will be sent n a 10 secnd scan rate. Resurces will receive a separate assignment fr RegA and RegD if the regulating resurce is dual qualified, but the regulating resurce will be assigned t fllw nly ne signal fr the hur. Regulatin Cntrl Signals (RegA, RegD) Real-time instantaneus resurce wner fleet regulatin signal (+/- MW). This signal is used t mve regulating resurces in the wner s fleet within the fleet capability (+/- TReg). This value will be sent n a 2 secnd scan rate. RegA-is the lw filter ACE signal sent t traditinal regulating resurces RegD-is the high filter ACE signal sent t dynamic regulating resurces Revisin: 38, Effective Date: 04/20/2018 PJM

47 Sectin 4: Prviding Ancillary Services Resurce wners will send t PJM: Ttal Regulatin (TRegA r TRegD)-This is the real-time fleet regulatin capability (MW) that represents the active resurce wner s ability t regulate. Ideally the value f this quantity shuld be the sum f the resurce wner s nn-zer AReg quantities fr the majrity f the hur, but must reflect any reductins in regulating capability as they ccur (resurce s AGC limit restrictins, resurce ff cntrl cnditins, etc.). This value shall be calculated every 2 secnds and sent n a 2-secnd scan rate. A fleet wner must separate the fleet s resurces fllwing RegA reprt TRegA and resurces fllwing RegD reprt TRegD. Current Regulatin (CRegA r CregD) - This is the real-time fleet regulatin feedback (+/- MW) that represents the active psitin f the fleet with respect t the +/- TReg capability. Ideally, the value f this quantity will track the RegA signal if the regulating fleet is respnding as prescribed. This value shall be calculated every 2 secnds and sent n a 2-secnd scan rate. A fleet wner must separate the fleet s resurces fllwing RegA reprt CRegA and resurces fllwing RegD reprt CRegD. Fr hydr resurces that have n ecnmic ffer these resurces must submit the resurce(s) midpint. Demand Respnse resurces are expected t prvide PJM with a MW-value basepint (LOADBP) in which the resurce is regulating arund Resurce wners may send the fllwing t PJM if the resurce wner will be using a perfrmance grup as described in Sectin Perfrmance Grup f this manual fr evaluatin: Resurce Allcatin Individual unit allcatin may be sent t evaluate resurce respnse. Allcatin shuld be sent as percent allcatin fr each individual regulating resurce f the resurce AReg. When the resurce is nt assigned it will send either a 0 %. Resurces withut an assciated allcatin signal will be scred n a prprtinal basis. Operatinal Midpint the pint arund which the regulating resurce (unit, plant r registratin) perates. If the abve signals are nt sent, then PJM will use prprtinal allcatin and ecnmic setpint Determining Regulatin Assignment The PJM RTO s Regulating Requirement is 525 effective MW during nn-ramp hurs and 800 effective MW during ramp hurs. The ramp and nn-ramp perid will be determined seasnally, based n system cnditins, and psted n PJM.cm at: PJM dispatch may increase r decrease the regulatin requirements as needed t accmmdate system cnditins. Each LSE is required t prvide a share f the PJM Regulating Requirement. An LSE s actual hurly Regulatin bligatin is determined fr the hur, after-the-fact, based n the LSE s ttal lad in the PJM RTO, as fllws: Revisin: 38, Effective Date: 04/20/2018 PJM

48 Sectin 4: Prviding Ancillary Services An LSE may satisfy its Regulatin bligatin by any f the fllwing methds: Self-Scheduled Resurces An LSE can satisfy its Regulatin bligatin by selfscheduling Regulatin. Bilateral Transactin An LSE can make cntractual arrangements with ther PJM Members that are able t prvide Regulatin service. PJM Regulatin Market Purchases An LSE can purchase its Regulatin bligatin frm the PJM Regulatin Market, i.e., frm the excess Regulatin capability prvided t PJM by Resurce wners. All Regulatin ffers reprted t PJM must prvide Regulatin that has a quality standard f 75% r greater, as established by verificatin testing. PJM Actins PJM will ntify the Transmissin Owners and Generatin Owners via the PJM ALL-CALL f changes t the regulatin requirement and the expected duratin f such change. PJM Members Actins Each LSE determines its estimated Regulatin Obligatin fr the perating day based n its wn frecast lad and the infrmatin received via the PJM ALL-CALL. Resurce wners view the hurly regulatin market results via Markets Gateway (available at least a half an hur befre the perating hur) as t thse resurces t which regulatin has been assigned. Resurce wners that have self-scheduled Regulatin n any f their resurces infrm the PJM dispatcher when thse resurces are n line and able t prvide the self-scheduled Regulatin. Once regulatin n a resurce is self-scheduled by a resurce wner, it is n lnger eligible t participate as a pl assigned regulating resurce fr the current perating day. If purchasing Regulatin frm anther entity, the buyer and seller negtiate the transactin and the buyer submits the transactin thrugh the Regulatin Bilateral page f Markets Gateway. The seller must then cnfirm the transactin via Markets Gateway by 4:00pm the day after the perating day. The rules fr these transactins are described in mre detail later in this sectin f the manual Dispatching Regulatin PJM btains the mst cst efficient Regulatin Ancillary Service available, as needed, t meet the PJM RTO s Regulatin Requirement. PJM assigns Regulatin in ecnmic rder based n the ttal cst f each available resurce t prvide Regulatin, including real time pprtunity cst and the resurce s Regulatin ffer price. The AR signals are then autmatically sent t the Resurce Owners via Autmatic Generatr Cntrl (AGC). Resurce Owners are respnsible fr maintaining unit regulating capability. Exhibit 14 shws hw the Regulatin is assigned t the resurces. Revisin: 38, Effective Date: 04/20/2018 PJM

49 Sectin 4: Prviding Ancillary Services Exhibit 14: Area Regulatin Assignment PJM dispatcher re-assigns regulating capability as necessary t meet the PJM Balancing area s Regulating Requirement. Market Sellers must cmply with Regulatin dispatch signals that are transmitted by PJM. Market Sellers must perate their regulating resurces as clse t desired utput levels, as practical, cnsistent with Gd Utility Practices. Regulatin Deficiency After the initial Regulatin assignments are made, and thrughut the perating hur, PJM Members reprt changes t their resurce s regulating capabilities either by a phne call t PJM r by virtue f the TReg signal(s) each cmpany sends t PJM. If a resurce becmes unable t supply its assigned amunt f Regulatin, the PJM dispatcher must de-assign deficient resurces and assign replacement Regulatin t ensure that the ttal Regulatin requirement is met. Such assignments are made ecnmically based n each available resurce s ttal cst t prvide regulatin, including real time pprtunity cst and the resurce s regulatin ffer price. If, after assigning all available Regulatin, the PJM Regulating Requirement is still nt met, PJM dispatcher perates the system withut the required amunt f Regulatin, lgging such events. In the event there is a lss f EMS cmmunicatin between PJM and a resurce wner, Current Regulatin Assignments must be reassigned t anther Resurce Owner until EMS cmmunicatin is reestablished. Regulatin Excess If during the perid an excess in assigned Regulatin ccurs and the ttal PJM RTO Regulatin value exceeds the bjectives by 15 MW r mre, PJM dispatcher de-assigns Regulatin ecnmically based n each resurce s ttal cst t prvide regulatin, including real time pprtunity cst and the resurce s regulatin ffer price. PJM Actins PJM dispatcher cntinuusly mnitrs the Regulatin deviatin t assess Resurce Owner fleet capability and reassigns Regulatin as required. Revisin: 38, Effective Date: 04/20/2018 PJM

50 Sectin 4: Prviding Ancillary Services PJM s accunting staff determines the billing fr the regulating service, accrding t the prcedures in the PJM Manual fr Operating Agreement Accunting (M-28). PJM Member Actins When initial assignments and reassignments are made, each affected Resurce Owner dispatcher then updates the entity s regulating capability as defined by the Resurce Owner TReg value. Participants reprt t the PJM dispatcher changes (f at least +/- 1 MW fr duratin greater than 15 minutes) t assigned Regulatin capability. Bilateral Transactins One PJM Member may sell Regulatin Ancillary Service t anther PJM Member. The tw members participating in the Bilateral Transactins must perate in accrdance with PJM Manual 11 Sectin Regulatin Bilateral Transactins. 4.5 Qualifying Regulating Resurces In rder t ensure the quality f Regulatin supplied t cntrl the PJM RTO, a quality standard is develped. A resurce must meet the quality standard t be permitted t regulate. In general, there are tw phases t qualifying a regulating resurce: Certifying the resurce Verifying regulating capability An Area Regulatin (AR) test is used fr bth certifying and verifying regulating capability fr a resurce. Nte: It must be emphasized that the Regulatin test is nt intended t test a resurce s gvernr respnse t pwer system frequency changes. PJM Actins PJM Perfrmance Cmpliance will evaluate test results against the PJM RTO Regulatin Market Obligatins as described in Sectin &scre the test using the perfrmance scre calculatin as described in Sectin Perfrmance Scre Calculatin f this manual within three business days f the test. PJM Perfrmance Cmpliance will send results f test t the resurce wner within three business days. PJM maintains a histrical database f individual resurce Regulatin test results and calculates all apprpriate cmpliance infrmatin. Individual test results are prvided via t the participant within three business days t facilitate a review and validatin f results at the participant level. PJM Dispatcher determines if a self-scheduled test r PJM administered test can be perfrmed based n system cnditins. Revisin: 38, Effective Date: 04/20/2018 PJM

51 Sectin 4: Prviding Ancillary Services Regulatin Qualificatin Test Traditinal Resurce Test The AR test is run during a cntinuus 40-minute perid when, in the judgment f PJM test administratr, ecnmic r ther cnditins d nt therwise change the base lading f the resurces that are being tested. All resurces perfrming a regulatin test must set and hld fr the test duratin the MW-value base pint that the resurce is regulating arund. Changes in base lading fr a resurce during the test perid invalidates the test fr that resurce. A separate set f tests are required fr qualificatin fr the traditinal signal (RegA) and the dynamic signal (RegD). The test fllws a simulated regulatin signal. The test will last fr 40 minutes. Once an AR test is annunced, a Resurce Owner is nt permitted t change any resurce s Regulatin assignment. Fllwing the testing perid an initial evaluatin will be perfrmed t ensure all underlying regulatin bligatins and testing requirements have been met. This will include verifying the resurce (1) was prviding regulatin fr the duratin (40 minutes) f the test, (2) can achieve its full regulatin testing range (+/- TREG), (3) has held it s regulatin base lading fr the full duratin f the test and (4) that n ther resurces within the testing fleet were in the regulatin market during the testing perid. Scring the AR test is based n cmpliance t the Perfrmance Scre Calculatin as described in Sectin Perfrmance Scre Calculatin f this manual. The scre is evaluated n the entire 40 minute test perid. Dynamic Resurces The qualificatin test prcedures described abve fr resurces that will fllw the dynamic regulatin signal (RegD) are the same as the qualificatin test fr RegA. Fr each test, resurces will fllw a signal fr 40 minutes and be scred using the perfrmance scre calculatin. Resurces must cmplete a separate set f tests t qualify fr the traditinal signal (RegA) r the dynamic signal (RegD). Changes t the Signal Path Re-Test New Resurce Owner Fr previusly qualified resurces that are either purchased by a new resurce wner which wuld cnstitute a change in the regulatin signal path, resurce wners must cnduct a single, successful re-test t verify that each unit is able t respnd t the regulatin signal under the new resurce wner. This test will be PJM administered and must meet threshld fr certificatin as described in Sectins During the transitin resurces will nt be qualified t ffer regulatin. After the retest, the resurce perfrmance scre will be set t the retest qualificatin scre. Changes t the Signal Path Re-Test Existing Owner Fr previusly qualified resurces where an existing resurce wner wh makes changes t the Energy Management System (EMS) r Generatin Management System (GMS) r ther changes, which wuld cnstitute a change in the regulatin signal path, resurce wners must cnduct testing based n mutual agreement with PJM. This includes but is nt limited t EMS/GMS database, Inter-Cntrl Center Cmmunicatin Prtcl (ICCP) server, and Cmmunicatin Frnt End (CFE) replacements and/r upgrades. After system verificatin, the resurces histric perfrmance scre will be maintained. This test must be administered by PJM. Revisin: 38, Effective Date: 04/20/2018 PJM

52 Sectin 4: Prviding Ancillary Services PJM Actins PJM Perfrmance Cmpliance will certify a resurce after three cnsecutive successful tests f 75% r better. After this requirement has been met, the change will be made t enable regulatin ffers t reflect the new certificatin within 1 business day. PJM Member Actins Cntact PJM Perfrmance Cmpliance at least a day prir t testing stating a regulatin test will ccur and include the fllwing infrmatin: the resurce name and identificatin number, the time f the test, the amunt f MWs being tested, basepint, and what signal type the resurce will test n. Cntacts the PJM Dispatch at least 60 minutes in advance f a PJM administered test fr test scheduling and apprval. Cntacts PJM Perfrmance Cmpliance at least 24 hurs befre the start f the test t ensure that test can be scred by the Perfrmance Scre Calculatin Engine (PSCE). Fr a new resurce wner, schedules a re-test by cntacting RegulatinTesting@pjm.cm fr each unit in a manner similar t the guidelines abve when a new wner takes cntrl f an already qualified regulatin. Fr an existing resurce wner, schedules system verificatin by cntacting RegulatinTesting@pjm.cm based n mutual agreement with PJM Staff when an existing resurce wner changes the cntrl signal path (e.g. EMS r GMS is changed r upgraded) Certifying Regulating Resurce A resurce may be certified nly after it achieves three cnsecutive scres f 75% r abve. Resurces prviding dispatchable energy and regulatin service needs t prvide testing at the lw ecnmic and high ecnmic regulatin limits. The first f these tests may be perfrmed internally by the member fllwing the PJM Regulatin test prcedure. T perfrm a self-test the member must use the PJM test shape psted n the Markets and Operatins> Ancillary Services>Market Based Regulatin page fed int the resurce wner s EMS. Additinally, the member must ntify the PJM Perfrmance Cmpliance at least 24 hurs befre the test. The Resurce wner shuld als ntify PJM Dispatch wh will make a determinatin whether the test can be run. The resurce shuld be set t unavailable during the test, thugh the ther units may cntinue t regulate. Up t three self-administered tests may be perfrmed n a resurce each day. The remaining tests shuld be administered by PJM Dispatch. The resurce wner shuld cntact PJM Dispatch and PJM Perfrmance Cmpliance at least 24 hurs befre the test. Fr a PJM administered test, all resurce(s) will be taken ut f the regulatin market fr the specific signal. PJM Dispatcher makes the final determinatin abut whether a PJM administered test can be perfrmed. Only ne PJM administered test may be perfrmed n a resurce each day. PJM Actins PJM Perfrmance Cmpliance will certify a resurce after three cnsecutive successful tests f 75% r better. After this requirement has been met, the change will be made t enable regulatin ffers t reflect the new certificatin within 1 business day. Revisin: 38, Effective Date: 04/20/2018 PJM

53 Sectin 4: Prviding Ancillary Services PJM Member Actins Befre a self administered test, resurce wner ntifies PJM Perfrmance Cmpliance and PJM Dispatch. Befre a PJM administered test, the resurce wner ntifies PJM Perfrmance Cmpliance and PJM Dispatch 24 hurs prir t testing. Fr any tests perfrmed by the members fr the purpse f certificatin, the member will supply the resurce, the time f the test amunt f MW being tested, the MW-value basepint the unit will be regulating arund, and the signal type the resurce is fllwing t RegulatinTesting@pjm.cm. Resurce wner uses psted test shape n Markets & Operatins>Ancillary Services>Market Based Regulatin ancillary-services.aspx fr self administered test. Resurce wner will set the resurces specific peratin setpints fr each resurce t test arund Certifying Multiple Cmbustin Turbines r Hydr Units at a Single Site Cmbustin Turbines and Hydr-generatrs perating under a single plant cntrl system must have a minimum f three tests f the cntrl system. In additin, the perfrmance f the each f the units being certified must be demnstrated in at least ne f these tests. The test frmat must fllw PJM Regulatin test prcedure. High and lw band requirements d nt apply fr CTs and Hydr units being certified. The resurce will be evaluated based n the Operatinal Midpint f the gruped resurces and the Resurces Allcatin as described in Sectin Regulatin Signals f this manual Increasing Regulatin Capability n a Resurce One Regulatin Certificatin Test is required fr each market resurce t increase the Regulating Capability n the resurce. This test must be administered by PJM. Additinally, the member must ntify the PJM Perfrmance Cmpliance and PJM Dispatch at least 24 hurs befre the test. The resurce shuld be set t unavailable during the test, thugh the ther units may cntinue t regulate. PJM Actins PJM will update the regulatin bidding availability t reflect the new certificatin within 1 business day after ne successful test f 75% r better. PJM Member Actins The resurce wner ntifies PJM Perfrmance Cmpliance and PJM Dispatch befre a PJM administered test. Fr any tests perfrmed by the members fr the purpse f increasing certificatin, the member will supply the resurce, the time f the test, amunt f MW being tested, the MW-value basepint the unit will be regulating arund, and the signal type the resurce is fllwing t RegulatinTesting@pjm.cm. Resurce wner will set the resurces specific peratin setpints fr each resurce t test arund. Revisin: 38, Effective Date: 04/20/2018 PJM

54 Sectin 4: Prviding Ancillary Services Disqualificatin and Re-Qualificatin f a Regulatin Resurce Regulating resurces that have nt met perfrmance threshlds ver a specified time perid will be disqualified and must re-qualify t ffer int the regulating market fr applicable signal type (RegA r RegD). The disqualificatin threshld is based n the histric perfrmance scre. The histric perfrmance scre is a rlling average actual hurly perfrmance scre fr the last 100 hurs a resurce has perated r a weighted average f the average f the three initial r requalificatin scres that are then averaged with available actual hurly perfrmance scres. The hurly perfrmance scre calculatin is described in sectin Perfrmance Scre Calculatin f this manual. When the histric perfrmance scre falls belw 40% by signal type, PJM will ntify the resurce wner and the resurce will n lnger be eligible t ffer int the regulatin market fr the applicable signal type. The resurce wner may schedule a re-test as sn as practicable. When a regulating resurce re-tests it will fllw the testing prcedure described in Sectins f this manual. Upn successful cmpletin f requalificatin, the regulating resurce perfrmance scre starts a new rlling average withut any hurs frm the previus perid cunting twards the current perid s rlling average. When a regulating resurce has n histric perfrmance available, either because it is a new resurce r a resurce that has re-qualified, the average f the qualificatin test scres will be used as prxy fr the histric perfrmance rlling average as fllws: Where 100 X = Y and Y is the number f hurs after qualificatin. After 100 hurs f actual perfrmance scres X 0. PJM Actins Tracks rlling average f a regulating resurce s perfrmance scre by signal type. Alerts the regulating resurce s wner when perfrmance by signal type falls belw threshld f 40%. Blcks the disqualified resurce frm ffering int the market. Mnitrs re-testing f the regulating resurce Re-qualifies regulating resurce, Ntifies LSEs f a resurce s certificatin fr Regulatin within three business days. PJM Member Actins Schedules re-test t re-qualify as regulating resurce status, if desired, while adhering t regulatin testing guidelines Perfrmance Scre Calculatin PJM will calculate an hurly perfrmance scre which reflects a regulatin resurce s accuracy in increasing r decreasing its utput t prvide frequency regulatin service in respnse t PJM s dispatch signal. With the Perfrmance Scre Calculatin Engine (PSCE), PJM will cllect regulatin signal data every 10 secnds and resurce perating parameters that will be Revisin: 38, Effective Date: 04/20/2018 PJM

55 Sectin 4: Prviding Ancillary Services inputs int the perfrmance scre. The perfrmance scre calculatin (PSC) evaluates each resurce s accuracy in fllwing the AGC signal. PSCE Assumptins Unless a resurce wner elects t send additinal data t detail peratinal decisins, it is assumed that resurces are allcating the regulatin cntrl signal(s) prprtinally and perating arund the PJM Individual Generatr Dispatch (IGD) setpint. If a resurce elects t use ther than prprtinal dispatch the resurce must send Operatin Midpint and Resurce allcatin described in Sectin Regulatin Signals f this manual. Delay and Crrelatin Scre Fr each 10 secnd interval starting frm Time 0 +10, PJM will calculate a Delay Scre t quantify the delay in respnse between the regulatin signal (RegA) and the resurce change in utput. T calculate the match, use the statistical crrelatin functin (r), which measures the degree f relatinship between the tw signals. By shifting the time perids t cmpare the signals, delay (δ) is defined at the pint in time f the maximum crrelatin between the tw signals. This generates bth a Crrelatin and Delay Scre as: Where the Delay scre allws a 10 secnd latency fr signal prpagatin delay fr regulating resurces. Crrelatin and Delay are determined tgether by finding the 10 secnd interval with the highest cincident Crrelatin and Delay scre. The 10 secnd interval that will determine Crrelatin and Delay fr each scring perid is: Crrelatin during Perids f Zer Slpe If the standard deviatin f the regulatin signal is less than a threshld value, then the Crrelatin shall be calculated as the 1 - abslute difference between the slpe f the regulatin signal and the slpe f the respnse. The perfrmance scre fr Crrelatin and Delay will be calculated by using linear regressin t find the slpes f the regulatin signal and the resurce respnse. Precisin Scre Fr each 10 secnd interval starting frm Time 0 +10, PJM will calculate a Precisin Scre as a functin f the difference in the energy prvided versus the energy requested by the regulatin signal while scaling fr the number f samples. Fr each 10 secnd sample averaged ver an hurly basis, PJM calculates the Precisin Scre as the abslute errr (ε) as a functin f the resurce s regulatin capacity, as: Revisin: 38, Effective Date: 04/20/2018 PJM

56 Sectin 4: Prviding Ancillary Services Where n is the number f samples in the hur and the precisin allws a 10 secnd latency fr signal prpagatin delay fr regulating resurces. Perfrmance Scre Calculatin Fr each 10 secnd set f calculatins the perfrmance scre will be averaged ver a five minute perid fr PJM will determine a cmpsite Perfrmance Scre per resurce as a unitless scalar ranging frm 0 t 1. The Perfrmance Scre will be a weighted average f the perfrmance scre cmpnents, as: The cmpnent scalars will be weighted equally with each at ne-third (1/3). Fr perids when assigned regulatin is 0, n scre will be calculated. Crrelatin, Delay and Precisin will be calculated with all applicable samples. Null scres will nt be included in the hurly average perfrmance scre. PJM Actins PJM will calculate the Perfrmance Scre fr each regulating resurce after the peratinal hur and reprt the scre t resurce wners. PJM Member Actins Nne Use f Perfrmance Grups in the Perfrmance Scre Resurces may elect t use a perfrmance grup fr perfrmance scre evaluatin. Perfrmance grups can nly be created fr resurces that satisfy ne f the fllwing criteria: Resurces nt eligible fr LOC and ttal t less than r equal t 10 MWs acrss Transmissin Owner bundaries. A perfrmance grup can be any number f resurces nt eligible fr LOC inside a transmissin wner s bundary. Resurces within a fleet with equivalent applicable ffers and pint f intercnnectin. Resurces that are part f a perfrmance grup will send the Operatinal Midpints and Resurce Allcatin f the grup TReg fr the gruped resurces by signal type as described in Sectin Regulatin Signals. Each resurce will be metered independently. PJM Actins PJM will receive additinal cntrl data t be used in the Perfrmance Scre Calculatin t be reflected resurce wner s dispatch. PJM Member Actins Resurce wners will ntify PJM via RegulatinTesting@pjm.cm that they satisfy ne f the Perfrmance Grup criteria. Revisin: 38, Effective Date: 04/20/2018 PJM

57 Sectin 4: Prviding Ancillary Services Resurce wners will add required infrmatin t their data transfer link t PJM Perfrmance Scres fr Regulatin Resurces during a Synchrnized Reserve Event Regulatin Resurces chsing t respnd t a Synchrnized Reserve event will receive synchrnized reserve cmpensatin based n Manual 11, Sectin Resurces that chse t respnd t a reserve event fr their reserve zne in an hur when they are cleared r assigned regulatin are expected t return t their regulating band within 10 minutes f the end f the Synchrnized Reserve event. Frm the start f the event, thrugh the event, and fr the 10 minutes after the end f the event, the perfrmance scres fr all regulating resurces in the reserve zne where the Synchrnized Reserve Event takes place will be null. PJM Actins PJM lgs the time f the start and end f a Synchrnized Reserve event. PJM will scre perfrmance fr all regulating resurces as null fr the perid during the Synchrnized Reserve event and 10 minutes after the end f the event fr thse resurces in that reserve zne. PJM Member Actins If the resurce wner chses t respnd t an event the resurce will return t the regulating band as sn as pssible after the end f the reserve event Perfrmance Scres during Perids with Insufficient Data In rare cases f data disruptin, circumstances may arise when PJM des nt have sufficient data t calculate perfrmance scres. During these disruptins, PJM will calculate perfrmance scres fr all intervals with at least fifteen cntiguus minutes f sufficient data. All intervals with perfrmance scres, and nly thse intervals, will cntribute equally t the hurly perfrmance scre. In the event that an perating hur des nt cntain fifteen cntiguus minutes f sufficient data, the histrical scre will be used as the hurly perfrmance scre fr that perating hur. PJM will als use the histrical scre as the hurly perfrmance scre fr an perating hur when a partial-hur regulatin assignment des nt result in fifteen cntiguus minutes f sufficient data. PJM Actins PJM uses current perating day histrical perfrmance scre fr an perating hur where input data fr perfrmance scres calculatins lasts fr greater than 15 minutes. PJM will use perating day histrical perfrmance scre when partial hur regulatin assignment results in less than 15 minutes f data Perfrmance Scres fr Regulatin Assignments with Limited Ntificatin Perfrmance Scring will begin ten minutes after PJM Dispatch lgs a resurce t prvide regulatin service. This will nt impact the length f time a resurce is cnsidered t be prviding regulatin service fr settlement calculatins. Fr purpses f scring under sectin Revisin: 38, Effective Date: 04/20/2018 PJM

58 Sectin 4: Prviding Ancillary Services 4.5.9, the fifteen cntiguus minutes cnditin will begin ten minutes after PJM Dispatch lgs a resurce t prvide regulatin service. PJM Actins PJM Dispatch lgs the time f the start fr the regulatin assignment. PJM will scre perfrmance starting ten minutes after PJM Dispatch lg indicates resurce start time. 4.6 Black Start Service Black Start capability is necessary t restre the PJM transmissin system fllwing a blackut. Black Start Service shall enable PJM, in cllabratin with the Transmissin Owners, t designate specific generatrs whse lcatin and capabilities are required t re-energize the transmissin system. These designated resurces, called black start units, are generating units that are able t start withut an utside electrical supply r the demnstrated ability f a unit with a high perating factr (subject t PJM apprval) t remain perating, at reduced levels, when autmatically discnnected frm the grid. The planning and maintenance f adequate black start capability fr restratin f the PJM balancing area fllwing a blackut represents a benefit t all transmissin custmers. All transmissin custmers must therefre take this service frm PJM. Black Start Service can be prvided by units that participate in system restratin. Such units may be eligible fr cmpensatin under the Black Start Service. If a partial r system-wide blackut ccurs, Black Start Service generating units can assist in the restratin f the PJM balancing area Additinal PJM Requirements The fllwing is a summary f PJM Manuals that include infrmatin abut PJM requirements fr prviding Black Start Service: PJM Manual M12: Balancing Operatins Sectin 4: Prviding Ancillary Services, Black Start Service Attachment C: PJM Black Start Test Reprt Frm - includes link t frms n PJM website: PJM Black Start Test Frm PJM Aut Lad Reject Test Reprt Frm PJM Black Start Frmulaic Cst Data Frm PJM Black Start Actual Cst Data Frm PJM Manual M10: Pre-Scheduling Operatins Sectin 2: Outage Reprting, Planned Outage Restrictins fr Black Start Units PJM Manual M01: Cntrl Center Requirements Sectin 4: Meter Accuracy Standards Revisin: 38, Effective Date: 04/20/2018 PJM

59 Sectin 4: Prviding Ancillary Services PJM Manual M14D: Generatin Operatinal Requirements Sectin 10: Black Start Generatin Prcurement Attachment E: PJM Generatr Reactive Capability Testing PJM Manual M27: Open Access Transmissin Tariff Accunting Sectin 7: Black Start Service Accunting PJM Manual M36: System Restratin Sectin 6: Generatin Sectin 8: System Restratin Plan Guidelines Attachment A: Minimum Critical Black Start Requirement Restratin Assumptins Transmissin custmers must purchase black start capability frm PJM. Generatin resurces prviding this service must successfully pass the requirements fr black start capability. PJM, in cllabratin with the Transmissin Owners, is respnsible fr identifying the generating units that are critical fr PJM balancing area system restratin. During restratin activities, the Transmissin Owner manages and deplys the black start capability, as needed, depending n the specific situatin. The Transmissin Owners have develped and shall annually review the Restratin Plan. The annual update f the Transmissin Owner s restratin plan may highlight the need fr changes t the Black Start requirement. The Transmissin Owner will alert PJM f these situatins t allw PJM t acquire mre Black Start generatin, if needed, thrugh the Black Start Incremental RFP Prcess dcumented in Manual 14D. PJM is respnsible fr crdinating payments fr all black start capability directly t the generating facilities that prvide the service. Credits and charges are determined as described in PJM Manual 27: Open Access Transmissin Tariff Accunting. Cst recvery prvisins fr Black Start Service units are detailed in PJM Open Access Transmissin Tariff (OATT) Schedule 6A Black Start Service Jurisdictin Fllwing the cmplete lss f system generatin (blackut), it will be necessary t establish initial generatin that can supply a surce f electric pwer t ther system generatin and begin system restratin. These initiating generatrs are referred t as system black start generatrs. They must be able t self-start withut any surce f ff-site electric pwer and maintain adequate vltage and frequency while energizing islated transmissin facilities and auxiliary lads f ther generatrs. Generatrs that can safely reject lad dwn t their auxiliary lad r an islated island f lad are anther frm f black start generatr that can aid system restratin Definitins Black Start Unit A single generatr that is able t start withut an utside electrical supply r the demnstrated ability f a base lad unit t remain perating, at reduced levels, when autmatically discnnected frm the grid. Revisin: 38, Effective Date: 04/20/2018 PJM

60 Sectin 4: Prviding Ancillary Services Black Start Plant A plant that includes a unit that can black start. A Black Start Plant with black start units at different vltage levels (electrically separated) will be cnsidered multiple Black Start Plants Objectives f Determining Black Start Criticality Prvide sufficient amunt and redundancy f black start resurces t initiate an rderly restratin f critical transmissin system cmpnents and prvide cranking pwer t generatin facilities within PJM. Prvide sufficient ff-site pwer t ensure restart fr nuclear facilities within PJM within the acceptable time-frame. Prvide peratinal flexibility t address alternate system restratin scenaris as required by facility failures and utages. Critical black start generatin is used t restre generatr auxiliary lad r ther critical lad t facilitate the system restratin prcess Assumptins Once a black start unit is started, it can be used t facilitate startup f ther units (black start r nt) at the same plant. Designated critical black start generatin is identified as such in each Transmissin Owners restratin plan. Redundancy f critical black start units is desirable due t pssibility f unit failure t start r transmissin facility failures preventing black start units frm serving their intended lads Minimum Critical Unit Requirements The PJM System Restratin Manual (M-36), Attachment A: Minimum Critical Black Start Requirement defines the minimum critical black start by transmissin zne. In general, there must be sufficient critical black start t serve critical lad (plus a 10% margin) and a minimum f tw critical black start units fr each transmissin zne that has a critical lad requirement. Exceptins t this requirement will be heard n a case by case basis and must be apprved by PJM and seek endrsement by the PJM System Operatin Subcmmittee-Transmissin. PJM, in its rle as Transmissin Operatr (TOP), is respnsible fr selecting the Black Start resurces fr a system restratin plan. PJM wuld wrk clsely with the Transmissin Owners t identify these units based n: Critical Lad requirements Available Black Start resurces Minimum number f Black Start resurces allcated t a zne Pssible crss znal crdinatin pprtunities The Transmissin Owner will adjust its system restratin plan based n the Black Start units allcated t it frm this selectin prcess. The Transmissin Owner has the ptin f prcuring additinal Black Start resurces (if nt already prcured by PJM), but the csts f Revisin: 38, Effective Date: 04/20/2018 PJM

61 Sectin 4: Prviding Ancillary Services these resurces will be recvered, if necessary, utside f the PJM Open Access Transmissin Tariff (OATT). Shuld there be a disagreement abut the lcatin, amunt r number f Black Start resurces, r disagreement between the supplying Transmissin Owners, receiving Transmissin Owner, r PJM abut crss znal crdinatin, the fllwing prcess will be fllwed: The parties invlved wuld bring the issue t the SOS-T fr cnsultatin. If the parties cntinue t disagree, the issues wuld be referred t the Dispute Reslutin Prcess as detailed in Schedule 5 f the PJM Operating Agreement. General ntificatin f initiatin and result f Dispute Reslutin prcess will be given t the Operating Cmmittee Prduct Descriptin Black Start Service - A generating unit is defined as black start capable if the fllwing cnditins are met: The generating unit has the ability f being started and can clse an utput circuit breaker t a dead bus withut energy frm ther PJM generating units r demnstrated ability t perate at reduced levels upn autmatic islatin frm the grid in such a way that it meets all requirements stated in the Perfrmance Standards and Testing sectins f this dcument. The generating unit wner and PJM have agreed that the unit shuld be designated as black start capable. The generating unit is lcated where black start capability is determined by PJM and all affected Transmissin Owners t be useful t system restratin and will be incrprated int the restratin plans f all affected Transmissin Owners. The generating unit must have the ability t clse the utput breaker t a dead bus within three hurs f the request frm the lcal Transmissin Owner r PJM. PJM may require sme Black Start resurces t adhere t less than a three (3) hur start time given critical lad restratin timing requirements. These units will be ntified f this timing requirement and tested t it during annual Black Start testing. PJM recgnizes that Black Start resurces with three hur (3) start times may nt be apprpriate t meet nuclear pwer ff-site safe-shutdwn lad restratin requirements. PJM will allw exceptins t this three (3) hur start time requirement, if needed, n a case by case basis. A generating unit that is needed fr system restratin and participates in black start service tests and System Restratin Drills may be eligible fr cmpensatin under black start service Generatr Owner s Cmmitment The generatr wner shall be cmmitted t prvide black start capability: Generatrs shall cmmit initially fr at least tw years t prvide black start service frm the black start service implementatin date, with an annual right t terminate by each party (the generatr wner and the transmissin wner) with ne year s ntice. In the event that neither the Black Start Unit wner nr the Transmissin Owner exercises its right t terminate by prviding a ne year ntice f terminatin, the cmmitment Revisin: 38, Effective Date: 04/20/2018 PJM

62 Sectin 4: Prviding Ancillary Services t prvide Black Start Service autmatically will be extended fr an additinal year t maintain a rlling tw-year cmmitment. All succeeding annual cmmitments must be at least an additinal year t maintain a rlling tw-year cmmitment. Changes in cst may be made annually, but will becme effective in the secnd year f cmmitment. If due t an event f frce majeure a generatr wner cannt prvide Black Start Service, the cmmitment requirements stated abve shall nt be binding. In the event that a Black Start Unit fails t fulfill its tw year rlling cmmitment t prvide Black Start Service, the Black Start Unit wner shall frfeit the received mnthly Black Start Service revenues fr the perid f its nn-perfrmance nt t exceed revenues fr a maximum f ne year. A failure by a Black Start Unit t cmplete its applicable annual black start requalificatin test r failure f the annual test des nt serve as ntificatin f the Black Start Unit wner s intent t terminate Black Start Service nr des it serve as ntificatin t start the Black Start Replacement Prcess described in Manual 14D - Generatr Operatinal Requirements. Black Start Unit Owners shall cmmit t supplying an update t the Black Start Service cst frmula as detailed in Schedule 6A f OATT via edart uplad prcess using the Black Start Frms in Attachment C. Fr New Black Start Units entering the service: New Black Start Unit Owners recvering capital cst under either Capital Cst Recvery Rate in PJM s Open Access Transmissin Tariff Schedule 6A shall prvide PJM an estimated annual revenue requirement based n the mst current cst data at the time the unit enters Black Start Service. New Black Start Unit Owners will submit capital cst dcumentatin t PJM and the IMM within 3 mnths after entering Black Start Service. Acceptable dcumentatin may cnsist f: Third party invices supprting csts fr cntractr services and materials, Time sheets r ther prject tracking dcumentatin fr internal labr csts (cmpnents f labr rates) including rate sheets and applicable verheads. When applicatins and certificates fr payment are used t cnfirm cmpletin f any prtin f a prject, they must be signed and ntarized. The signature and ntarizatin must be visible n any cpies prvided. When internal csts are charged t the prject they must include dcumentatin supprting all csts which will be included and a breakdwn f hw the csts were develped. New Black Start Unit Owners will submit annual revenue csts including variable black start and fuel strage csts (if applicable) t PJM and the IMM within 3 mnths after entering Black Start Service. The annual Black Start revenue requirement may include annualized capital csts, Black Start O&M csts, existing unit level annual VOM cst, and NERC Standard cmpliance csts, all f which must include cmplete supprting dcumentatin. Revisin: 38, Effective Date: 04/20/2018 PJM

63 Sectin 4: Prviding Ancillary Services If the Black Start unit can be fired n il, additinal required dcumentatin include supprt fr the claimed Minimum Tank Suctin Level(s), size f tanks, fuel burn rates. If the tank is shared with ther resurces, a cmplete explanatin with all supprting data f hw tanks use is shared and the allcatin factr(s) used Perfrmance Standards Each black start unit shall meet the fllwing perfrmance standards: The ability t self-start withut any surce f electric pwer frm anther PJM Capacity Resurce within three (3) hurs r the time defined in the Transmissin Owner s system restratin plan, as demnstrated thrugh testing r the demnstrated ability t perate at reduced levels when autmatically discnnected frm the grid. The ability t clse int a dead (de-energized) bus. This may be demnstrated by (a) physically clsing the generatr breaker cnnected t a dead bus while the unit is running r (b) by a test that simulates clsing the generatr breaker while nly the generatr side f the breaker is energized r t a live bus. If the unit has the ability t perate at reduced levels when autmatically discnnected frm the grid, this may be demnstrated by {a} physically remving the unit frm the grid while the unit is running r {b} by a test that simulates remving the unit frm the grid. The capability t maintain frequency under varying lad. This may be demnstrated by (a) picking up an islated blck f lad, r (b) by apprpriate dynamic ff-line testing f the gvernr cntrls. The capability t maintain vltage under varying lad. This may be demnstrated by (a) picking up an islated lad, (b) by prducing bth leading and lagging VARs by varying the vltage setting while the unit is synchrnized t the system, r (c) by apprpriate dynamic ff-line testing f the vltage cntrls. Ability t maintain rated utput fr a duratin as identified by the Transmissin Owner s system restratin plan. Requirements fr supply t gas fueled black start units shuld be cnsidered in the Transmissin Owner s system restratin plan. Specific gas supply requirements include, but are nt limited t, electric feed t gas gate valves, r lcal gas cmpressrs needed t maintain gas supply during the restratin prcess. In additin t these unit-specific perfrmance standards, each black start generatin wner must maintain prcedures fr the startup f black start generatin at each black start generating statin. These standards shall remain in effect fr the duratin f the cmmitment PJM Obligatins Generatrs that cmmit t prvide Black Start Service shall nt have their black start capable designatin terminated within the time f their cmmitment. PJM shall prvide at least a twyear ntice t the wner r wners f generating units that are prviding Black Start Service prir t terminating that unit s designatin as black start capable. Designated black start generating units shall recgnize that PJM shall have the authrity t ensure a minimum amunt f black start capacity when deciding whether t apprve generatr utages. Critical black start units will have additinal planned utage restrictins as defined in the Sectin 2 f PJM Manual 10: Pre-scheduling Operatins. Revisin: 38, Effective Date: 04/20/2018 PJM

64 Sectin 4: Prviding Ancillary Services Testing Every generating unit that is prviding black start capability shall be tested t verify that it can be started and perated withut being cnnected t the PJM pwer system. Black start generating unit wners/peratrs shall annually schedule tests f resurces prviding black start capability t cnfirm the ability f such resurces t meet the applicable standards fr perfrmance and cntrl. Tests may be scheduled at the discretin f the generatin wner, hwever, tests must be prescheduled with PJM prir t the test. Cmpensatin fr energy utput delivered t the system shall be prvided fr the unit's minimum run time at the higher f the unit's cst-capped ffer r real-time LMP, plus start-up and n-lad csts fr up t tw start attempts, if necessary. Any unrecvered csts f Black Start Tests shuld be submitted in writing t the Manager f Market Settlements. Fr units with high perating rates with the ability t remain perating at reduced levels when autmatically discnnected frm the grid, an pprtunity cst will be prvided t cmpensate the unit fr lst revenue during the black start testing. Annual tests shall include: Starting and bringing the resurce t synchrnus speed withut assistance frm a system electrical feed r demnstrating the ability t remain perating at reduced levels when autmatically discnnected frm the grid. Testing f all cmmunicatin circuits. Simulating switching needed t cnnect the black start unit t the transmissin system fllwing a system blackut. Testing the features unique t each facility that relate t Black Start Service. Fr New Units: Fr a generatr that is a new Black Start Unit, revenue requirements must be submitted t PJM and the MMU thrugh the edart uplad prcess. Next, the unit must successfully pass a Black Start Service test accrding t their plant s prcedures (and restratin plan requirements), and submit the test results t PJM using the PJM Black Start Test Reprt Frm (Attachment C). Upn successful cmpletin f the Black Start Service test, the payment start date is the 1st day f the next mnth fllwing the receipt f bth test and cst data. Fr Units Integrating int PJM: Fr an existing Black Start Unit which has recently been integrated int the PJM Regin, the Black Start Unit wner must send revenue requirements t PJM and 0the MMU thrugh the edart uplad prcess at least ne mnth prir t jining PJM. The unit must successfully pass a Black Start Service test within 6 mnths f integratin then submit the test results t PJM using the PJM Black Start Test Reprt Frm (Attachment C). The payment start date is the 1st day f integratin. Fr Recertifying Units: After the Black Start Unit has been decertified due t failure t cmplete testing requirements, the Black Start Unit will be cnsidered a new unit fr purpses f testing, and must recertify by cnducting a successful Black Start Service test. Revisin: 38, Effective Date: 04/20/2018 PJM

65 Sectin 4: Prviding Ancillary Services PJM will reinstate the unit s payment in the next mnth after the successful test is perfrmed Testing and Training Standards and Recrds Each black start generating unit shall be tested t verify it can be started and perated withut being cnnected t the system. The black start generating unit wner/peratr shall annually test the start-up and peratin f each black start generating unit. Multiple tests may be attempted fllwing the identificatin and reprting f crrective actins (See the Nnperfrmance Issues sectin). Testing recrds shall include: Date(s) f test(s) Duratin f test(s) frm start f test until unit is n-line Test cnditins (ambient temperature, general weather cnditins) Indicatin f whether the unit was able t start withut being cnnected t the system r demnstratin f the ability t discnnect frm the grid autmatically and remain perating at reduced levels. Start time f Black Start unit frm beginning f start up until unit cnnects t dead bus. Indicatin f the ability t clse a circuit breaker int a dead bus Indicatin f the ability t remain stable and cntrl vltages while perating islated frm the transmissin grid and supplying the surce s wn auxiliary lad fr a perid f at least 30 minutes. Descriptin f the cranking path f the unit. Descriptin f startup f auxiliary equipment required fr startup and peratin f the next nn-black start unit. Descriptin f cmmunicatins and cntrl systems that are capable f allwing SCADA/ EMS data and vice cmmunicatins, as defined in the PJM Cntrl Center and Data Exchange Requirements Manual. Explanatin f failed test and crrective actins taken Descriptin f peratr training Dates f training Cpies f black start prcedures If the item is nt tested the Generatr Owner must submit an explanatin n the Black Start testing frm explaining why the item was nt tested. Dcumentatin f the test results f the start-up and peratin f each black start generating unit shall be prvided t PJM. PJM shall verify that the number, size, and lcatin f black start capable units are sufficient t meet PJM s restratin plan expectatins. Revisin: 38, Effective Date: 04/20/2018 PJM

66 Sectin 4: Prviding Ancillary Services Nte: If verificatin is dne thrugh simulatin, the analytical analysis must be the result f dynamic studies that include the capacitive effects f cranking path circuits, unit reactive capabilities, pssible steady-state and transient switching vltages, acceptable frequency, and prper mdeling f large auxiliary mtrs required in startup Nn-perfrmance T cllect mnthly black start revenues, a unit must have a successful black start test n recrd with PJM within the last 13 mnths. Once a generatr is qualified, they have until the end f the 13th mnth fllwing the last successful black start test date t submit dcumentatin f the next successful annual test t PJM. Units are encuraged t adpt an annual testing cycle allwing the extra mnth t be reserved fr retesting r scheduling cnflicts. If a unit fails a black start test, the unit is given a ten day grace perid within which it may retest withut financial penalty if within the thirteen mnth testing perid. If the unit des nt successfully pass a black start test within the ten day grace perid immediately fllwing ntificatin f PJM a failed test, mnthly black start revenues will be frfeited frm the time f the first day f the mnth in which the unsuccessful test ccurred until the first day f the first mnth AFTER the unit successfully passes a black start test. PJM Actins PJM Perfrmance Cmpliance Department will cllect and analyze the Black Start Test data as described abve frm each black start unit t determine each unit s eligibility fr Black Start Service payments. PJM will ntify the MOC r Unit wner, as applicable, within five business days f test submittal f unit s failure. PJM Perfrmance Cmpliance will ntify the LCC if a black start unit in their zne fails t cmplete a successful black start test in the required timeframe. PJM Perfrmance Cmpliance will als ntify the LCC when units that failed black start tests are again eligible after cmpleting a successful test. PJM Perfrmance Cmpliance Department will maintain the list f eligible black start units and frward any changes t PJM Market Settlements. PJM Market Mnitring Unit will analyze any requested generatr black start cst changes n an annual basis and frward all apprved revenue requirements t PJM Market Settlements. The apprved revenue requirements will be applied by PJM Market Settlements t Black Start Service payments starting with the mnth fllwing the submissin f the black start cst changes. PJM Member Actins Black Start Generatin Owners will ntify PJM Perfrmance Cmpliance Blackstart@pjm.cm, as well as the LCC in whse zne the black start unit perates, f expected black start test date. Black Start Generatin Owners will ntify PJM Operatins prir t start f black start test. Black Start Generatin Owners will reprt Black Start Test results using the PJM Black Start Test Reprt Frm displayed in Attachment C f this manual. Generatin Owners with Aut Lad Reject Units will reprt their testing results using the PJM Aut Lad Reject Test Reprt Frm in Attachment C f this manual. Cmpleted frms and ther Revisin: 38, Effective Date: 04/20/2018 PJM

67 Sectin 4: Prviding Ancillary Services requested data will be submitted t the PJM Perfrmance Cmpliance Department using the edart XLS Uplad Prcess. Black Start Generatin Owners may request changes t their Schedule 6A revenue requirements (frmulaic csts) annually by cmpleting the PJM Black Start Frmulaic Cst Data Frm displayed in Attachment C f this manual. Frmulaic cst data requests will be reviewed and apprved by the PJM Market Mnitring Unit. Alternatively, Black Start Generatin Owners may request changes t their actual csts annually by cmpleting the PJM Black Start Actual Cst Data Frm in Attachment C f this manual. Cmpleted cst data frms and ther requested data will be submitted with apprpriate dcumentatin t the PJM Market Mnitring Unit fr analysis using the edart XLS Uplad Prcess, hwever actual cst change requests must be filed t with apprpriate dcumentatin t the FERC fr apprval Terminatin f Black Start Service In the event a Black Start Unit intends t terminate Black Start Service, the Black Start Unit wner shall ntify PJM f its intent t terminate Black Start Service using the steps described in the Black Start Replacement Prcess described in Manual 14D. In accrdance with the prvisin f Schedule 6A, PJM OATT, the unit wner must give ne year s advance ntice f intent t terminate Black Start service t allw time fr the Black Start Replacement Prcess. PJM Member Actins Fllw actins fr the Black Start Replacement Prcess as described in Manual 14D- Generatin Operatinal Requirements. Revisin: 38, Effective Date: 04/20/2018 PJM

68 Sectin 5: Transmissin Facility Cntrl Sectin 5: Transmissin Facility Cntrl Welcme t the Transmissin Facility Cntrl sectin f the PJM Manual fr Balancing Operatins. In this sectin yu will find the fllwing infrmatin: Identifies majr prblems and the means f crrectin (see Crrective Cntrl Strategies ). Hw PJM cntrls fr reactive limits (see Reactive Limitatin Cntrl ). Hw PJM cntrls vltage (see Vltage Cntrl ). Hw PJM respnds t verladed transmissin facilities (see Thermal Overladed Transmissin ). Descriptin f reginal reliability crdinatin (see Reliability Crdinatin Plan ). 5.1 Crrective Cntrl Strategies Belw are the majr electrical netwrk prblems that can ccur in the PJM RTO and the primary (r mst effective) means f vercming these prblems. Exhibit 15 identifies the majr prblems as: Overlads (pre-pst cntingency/reactive) and excessive transfers between areas within the PJM RTO transmissin system lw vltage cnditins transmissin system high vltage cnditins pwer system lw frequency cnditins pwer system high frequency cnditins PJM RTO Prblems Typical Means f Cntrl Overlads & Excess Transfers Lw Transmissin Vltage High Transmissin Vltage Lw Frequency Cnditins High Frequency Cnditins Generatr Megawatt Adjustment Raise/Lwer MW Start Up Generatrs Shut Dwn Generatrs Phase Angle Regulatr Adjustment Increase/ Decrease Phase Angle PJM Interchange Schedule Adjustment Adjust Imprt/ Exprt MW Increase MW Flw Acrss PJM Balancing area Revisin: 38, Effective Date: 04/20/2018 PJM

69 Sectin 5: Transmissin Facility Cntrl PJM RTO Prblems Typical Means f Cntrl Overlads & Excess Transfers Lw Transmissin Vltage High Transmissin Vltage Lw Frequency Cnditins High Frequency Cnditins External Interchange Schedule Adjustment Adjust External Interchange Schedules Generatr Reactive Pwer Adjustment Transfrmer Tap Adjustment Shunt Capacitr Switching Shunt Reactr Switching Synchrnus Cndenser Adjustment Increase Excitatin Raise/Lwer Tap Psitin Cnnect t Grid Discnnect frm Grid Increase Excitatin Decrease Excitatin Raise/Lwer Tap Psitin Discnnect frm Grid Cnnect t Grid Decrease Excitatin Transmissin Line Switching Selected Line Switching Outage Pre-studied Lines Circuit Breaker Switching Change Netwrk Tplgy Change Netwrk Tplgy Change Netwrk Tplgy Pumped Strage Pump Operatin Change Pump Status Shut Dwn Pumps Start Up Pumps Shut Dwn Pumps Start Up Pumps Pumped Strage Generatr Operatin Change Generatr Status Start Up Generatrs Shut Dwn Generatrs Start Up Generatrs Shut Dwn Generatrs Custmer Lad Vltage Reductin Apply As Necessary Apply As Necessary Apply As Necessary Custmer Lad Shedding Apply As Necessary Apply As Necessary Apply As Necessary Exhibit 15: Crrective Cntrl Strategies Revisin: 38, Effective Date: 04/20/2018 PJM

70 Sectin 5: Transmissin Facility Cntrl Sme f these cntrls are autmatically applied by lcal clsed-lp cntrl while ther cntrls are acted n by the individual participants upn PJM request. PJM has n direct means f cntrlling the generatin/transmissin/distributin system. Resurce re-dispatch by PJM may be dne either electrnically r via phne call. The RT- SCED sftware is used t autmatically calculate ecnmic basepints fr resurces capable f fllwing its signals. The basepints prduced by the RT-SCED applicatin cnsider the impact f a specific resurce n a transmissin cnstraint such that by fllwing the RT-SCED basepint a resurce can relieve a transmissin cnstraint. Manual dispatch is required by PJM when either a resurce capable f fllwing the RT-SCED basepint is nt ding s, r, an effective resurce t relieve a transmissin cnstraint cannt fllw the RT-SCED basepint. Manual dispatch is typically nly used after ecnmic dispatch is cmpletely exhausted. PJM perfrms manual dispatch fr a transmissin cnstraint using the fllwing steps: The PJM Operatr identifies the cnstraint fr which further actin is required t cntrl a ptential r actual verlad. The PJM Operatr identifies the amunt f relief currently needed n the cnstraint and cnsiders the amunt f future relief needed depending n changes in lad, interchange, generatin patterns, utages, etc. The PJM Operatr validates that all ecnmic resurces available have been exhausted. The PJM Operatr runs a distributin factr reprt using the PJM EMS t determine the resurces that are effective t reslve a ptential r actual verlad. The PJM Operatr selects a set f resurces that are mst effective t relieve the transmissin cnstraint and based n the amunt f relief needed and the dfax, determines the amunt f curtailment required by each resurce. The PJM Operatr cntacts each resurce peratr and cmmunicates the amunt f curtailment required. The PJM Operatr determines the MW impact that regulating resurces have n the transmissin cnstraint and may manually de-assign regulatin frm resurces that adversely impact the cntrl f the cnstraint. The PJM Operatr re-assesses manual curtailments peridically and cmmunicates adjustments r the remval f such restrictins as necessary. Exhibit 16 shws the type f limits that apply t varius pwer system cnditins. Nuclear pwer plants at varius lcatins may have mre restrictive vltage limits, impsed by nuclear licensing bligatins. In these cases, such limits are t supersede the general guidance prvided in Exhibit 16 which details the PJM baseline values, any exceptins can be fund in Manual 3, Sectin Nte: Thermal and reactive cnstraint cntrl includes lading f ecnmic generatin (n cst) generatin. Revisin: 38, Effective Date: 04/20/2018 PJM

71 Sectin 5: Transmissin Facility Cntrl Types f Limits Pwer System Cnditins Pre-Cntingency Nrmal Cnditins Pst-Cntingency Emergency Cnditins Thermal Actual Flw < Nrmal Rating Cntingency Flw < Emergency Rating Reactive Transfer Equivalent MW Rating Equivalent MW Rating Vltage kv kv kv kv kv Max 8-10% kv Drp Vltage kv 500 kv kv 500 kv kv Max 5% kv Drp Vltage kv 328 kv kv 328 kv kv Vltage kv 219 kv kv 219 kv kv Vltage kv 131 kv kv 131 kv kv Vltage kv 109 kv kv 109 kv kv Vltage - Custmer ANSI Standard 97.5% - 105% 95% % Stability - Steady State Stability - Steady State Max 60 Difference fr 500 kv System Max 40 Difference fr Generatrs Max 50 Difference fr 500 kv System Max 30 Difference fr Generatrs Exhibit 16: Pwer System Limits The next subsectins describe the prcedures that are fllwed t implement cntrls in respnse t specific prblems. 5.2 Reactive Limitatin Cntrl This sectin prvides perating guidelines fr nrmal and emergency cntrl f transfer interfaces where a reactive limit is reached r exceeded. PJM Actins When a reactive limit is apprached r exceeded, and nn-cst mves are ineffective, ut-f-merit assignments are made in the mst effective areas t cntrl these limitatins. PJM dispatcher als evaluates the impact f the existing inter-area transfers and mdifies the transactin schedules that adversely affect the reactive transfer limit. Prir t ut f merit assignments transactin schedules that are nt willing t pay cngestin are curtailed. If insufficient generatin is available t cntrl these limitatins, the Emergency prcedures cntained in the PJM Manual fr Emergency Operatins are implemented. If the Emergency Prcedure steps (frm curtailing nn-firm cntracts Revisin: 38, Effective Date: 04/20/2018 PJM

72 Sectin 5: Transmissin Facility Cntrl thrugh Vluntary Custmer Lad Curtailment, including implementatin f the NERC TLR prcedure) are insufficient t cntrl the transfers, a Manual Lad Dump Warning is issued t all Generatin Owners/Transmissin Owners stating the mst serius limitatin and the estimated amunt f lad relief required. PJM dispatcher using all available tls, vltage drp curves, actual vltage cnditins, prximity t all the different reactive transfer limits, and Transmissin Owner impacts, determines the mst effective area fr lad dumping. PJM dispatcher discusses the lcatins and the amunt f lad drp required with the affected LSEs. If transfers exceed a reactive transfer limit and vltage cnditins are deterirating and PJM dispatcher determines that the system cannt withstand the ccurrence f the cntingency, PJM dispatcher rders a Manual Lad Dump in the mst effective area and in an amunt sufficient t return the transfers t within the reactive transfer limit. If transfers exceed the transfer limit (r a revised transfer limit, if applicable), due t the ccurrence f sme cntingency, but additinal actins ther than lad dumping are available and effective, these actins are first undertaken. If, hwever, transfers are nt returned t within the limits within 30 minutes f the ccurrence f the cntingency, the PJM Emergency Prcedures up t and including lad dumping are implemented. PJM Member Actins The Generatin Owner/Transmissin Owner dispatchers fllw actins prescribed in the PJM Manual fr Emergency Operatins. 5.3 Vltage Cntrl The PJM RTO is perated s that nrmal vltage prfiles are maintained at all lad levels. Under nrmal system cnditins, the fllwing criteria are used: Each LSE is able t supply its reactive lad and lsses lcally at all lad levels. The 500 kv system is perated s that all 500 kv bus vltages are maintained between 500 kv and 550 kv (494 kv and 540 kv in the Dminin area) n a pre-cntingency basis. Maximum vltage capabilities n individual 500 kv buses are given in Attachment B. The 345 kv and belw prtin f the bulk pwer transmissin system is perated s that all bus vltages are maintained within 5% f the nminal vltage n a pre-cntingency basis, unless use f a different bandwidth is required because f equipment design. N single cntingency utage shall exceed either f the fllwing limits at a 500 kv bus: A pst-cntingency vltage drp f five percent (0.20 PU in the Dminin area) n 500 kv facilities. A pst-cntingency angular difference which is ten degrees less than the setting f the synchr-check relay. Synchr-check relays are set t 60 fr 500 kv terminals and 40 fr generatrs. PJM regularly examines system cnditins fr ptential vltage prblems and advises PJM dispatcher f measures that must be taken t maintain the system within the criteria. Revisin: 38, Effective Date: 04/20/2018 PJM

73 Sectin 5: Transmissin Facility Cntrl The Generatin Owner/Transmissin Owner dispatchers establish system vltage cntrl by using cntrllable reactive surces and lad tap changers, including generatrs, synchrnus cndensers, and switched capacitrs. After the cntrllable reactive surces are utilized, Lad Tap Changing (LTC) transfrmers may be used t adjust 500 kv and 230 kv vltages Actin in a Lw-Vltage Situatin If vltages are, r are expected t be, belw the criteria, the fllwing actins are taken by PJM and the Generatin Owners/Transmissin Owners. PJM Actins PJM dispatcher requests all Generatin Owners/Transmissin Owners t implement the heavy-lad vltage schedule. PJM dispatcher requests that synchrnus cndensers and switchable capacitrs be placed in service unless studies indicate therwise. PJM dispatcher verifies that all units in peratin are supplying maximum MVAR capability. PJM dispatcher adjusts 500/230 kv transfrmer taps t ptimize system vltage. If system vltages are determined t be verly sensitive t slight increases in transfer levels, PJM dispatcher reduces pwer transfers int the reactive-deficient area t a value that stabilizes vltages. PJM dispatcher re-examines system cnditins and reduces the limit, until vltage stability is achieved. PJM Member Actins The Generatin Owner/Transmissin Owner dispatchers respnd prmptly t specific requests and directins f PJM dispatcher kv System Vltage Belw 500 kv If the 500 kv system vltage is belw 500 kv (r 494 kv in the Dminin area), the fllwing actins are taken: PJM Actins PJM dispatcher issues a Manual Lad Dump Warning and takes apprpriate Emergency prcedures (see PJM Manual fr Emergency Operatins), in the effective area. If the 500 kv system vltage has reached a level f, r is decaying tward 470 kv, r any ther level as determined by PJM peratins planning staff, PJM dispatcher rders sufficient lad dumping in the deficient area, s as t stabilize the system vltage at 490 kv r better t prtect the system frm a lss f a large unit. PJM dispatcher directs Transmissin Owners, via the PJM ALL-CALL, t avid taking any actins that adversely affect the 500 kv system vltage, withut first btaining apprval frm PJM dispatcher. If the 345 kv system r belw has reached a level f 90% f nminal and is cntinuing t decay, PJM dispatcher rders lad dumping in the deficient area, sufficient t return the system vltages t 95% r better. PJM Member Actins Revisin: 38, Effective Date: 04/20/2018 PJM

74 Sectin 5: Transmissin Facility Cntrl The Transmissin Owner dispatchers prmptly dump an amunt f lad equal t, r in excess f, the amunt requested by PJM dispatcher. The Transmissin Owner dispatchers reprt actins taken nce implemented Actin in a High-Vltage Situatin The fllwing items apply t vltage cntrl f the verall PJM 500 kv system. It shuld be nted that high vltage prblems f lcalized nature may be mre effectively cntrlled by selective measures in the particular area. PJM Actins PJM dispatcher requests the Transmissin Owners t discnnect all switchable capacitrs. PJM dispatcher requests system reactrs be placed in service where available. PJM dispatcher requests the Generatin Owners/Transmissin Owners t perate units t absrb reactive pwer. PJM dispatcher requests neighbring Balancing areas t assist in reducing vltage. PJM dispatcher requests the Transmissin Owners t adjust 500/230 kv transfrmer taps t ptimize system vltage. PJM dispatcher requests the Transmissin Owners t reset desired vltage n Static Var Cmpensatrs (SVCs). If the abve is nt sufficient, high-vltage prblems may pssibly be relieved by pening a 500 kv circuit. (Opening a circuit laded belw surge impedance lading, 850 MW, results in a net decrease in line charging). If using the EMS real-time prgram, PJM dispatcher determines that pening the 500 kv circuit causes n verlads, PJM dispatcher directs the Transmissin Owner t pen this line at bth terminals. PJM dispatcher determines if this actin has prduced the desired effect; if nt, PJM dispatcher directs the Transmissin Owner t reclse the line. PJM peratins planning staff rutinely prvide PJM dispatcher with a list f 500 kv circuits that may be pened withut degrading system reliability. PJM dispatcher may nt pen mre than ne 500 kv circuit fr vltage cntrl in an area. PJM Member Actins The Generatin Owner/Transmissin Owner dispatchers respnd prmptly t specific requests and directins f PJM dispatcher. 5.4 Thermal Overladed Transmissin This sectin describes the actins t be taken when there is thermal verlading f a transmissin facility (line r transfrmer) at r abve the Shrt-Term Emergency (STE) rating. These actins prvide prtectin f high vltage transmissin frm failure and damage due t verladed cnditins and preservatin f system reliability. The general prcedure is t first apply effective crrective actins that can be taken at little r n cst, fr example: Transfrmer tap adjustments Revisin: 38, Effective Date: 04/20/2018 PJM

75 Sectin 5: Transmissin Facility Cntrl Phase-angle regulatr adjustments Capacitr/reactr switching Pre-studied line switching Curtailment f nn-firm transactins nt willing t pay fr cngestin Transactin Curtailment PJM may curtail transactins fr which the transmissin custmer has nt indicated the desire t buy thrugh cngestin. These curtailments are accmplished in an rder based n: Distributin factr impact n the cnstrained facility Pririty f transmissin service Timestamp f the transmissin service request within each pririty level If the transactins which require curtailment are external t PJM, the NERC TLR prcedure is invked Generatin Redispatch In the event that further crrective actins are required, the utputs f effective generatrs are adjusted away (ff-cst) frm their nrmal assignments (n-cst). The generatin cntrl cst signal that is sent frm PJM t each Generatin Owner is established either autmatically by cmputer prgram r manually by PJM dispatcher (see Exhibit 5 f this PJM manual) Operating Mde Change Prcedure The fllwing prcedures are applied when the PJM RTO cnditins require a change in n/ffcst perating mdes: Frm On-Cst t Off-Cst When generatin redispatch is necessary, the PJM dispatcher ntifies all Generatin Owners/Transmissin Owners, via the PJM ALL-CALL, that particular Cntrl Znes will be perating ff-cst. Frm Off-Cst t On-Cst When cnditins permit the affected Generatin Owners/ Transmissin Owners t return t ecnmic dispatch (n-cst), PJM dispatcher ntifies all Lcal Cntrl Centers, via the PJM ALL-CALL, when the affected LSEs will return t n-cst peratins. A summary f PJM Cnstraint Cntrl guidelines is included as Attachment B. PJM Actins When a transmissin facility is laded abve the STE rating, but des nt exceed the lad dump rating (generally 115% f the STE rating), PJM dispatcher requests adjustments t cntrllable equipment within a maximum f 15 minutes, t bring the lading t equal r belw the STE rating. If the facility is nt reduced within 15 minutes, PJM dispatcher rders a lad dump t reduce the actual flw n the facility t be equal t r belw the STE rating. Revisin: 38, Effective Date: 04/20/2018 PJM

76 Sectin 5: Transmissin Facility Cntrl When a transmissin facility is laded abve the lad dump rating, PJM dispatcher r Transmissin Owner n the receiving end f the verladed facility, has up t a maximum f five minutes t analyze and relieve the verlad. If nt reduced t r belw the STE rating at the end f five minutes, PJM dispatcher rders a lad dump t relieve the facility. PJM dispatcher prmptly infrms the Transmissin Owner dispatcher f any verlads that have ccurred and crrective actins being taken. PJM Member Actins The Transmissin Owner dispatchers prmptly infrm PJM dispatcher f any verlads that have ccurred and crrective actins being taken. The Transmissin Owner dispatchers d nt pen any verladed transmissin, including inter-balancing area and intra-balancing area circuits, under disturbance cnditins unless pre-studied r pre-arranged fr specific cntingencies. If an verladed transfrmer r cable cannt be relieved by applying the previus criteria, the LCC dispatcher can pen the facility, while taking int accunt the system cnditins and the resulting cnsequences, versus the cnsequences f having the facility fail and incur damage Generatin Redispatch (Nn-Market Facilities) In the event that further crrective actins are required beynd nn-cst actins, PJM will issue a Pst-Cntingency Lcal Lad Relief Warning (PCLLRW). At the request f the Transmissin Owner, PJM will manually direct the redispatch f effective generatin. The effective generatin will be cst-capped but nt permitted t set LMP since the facility is nt a Market facility. PJM will cmmit effective generatin in rder t minimize the ttal MW cmmitted t cntrl the cnstraint. Nte: If pst-cntingency flws exceed the facility s Lad Dump limit, the Transmissin Owner s ptin t cntrl will n lnger apply. PJM will manually direct the redispatch f effective generatin t maintain the pst-cntingency flw belw the Lad Dump limit. Revisin: 38, Effective Date: 04/20/2018 PJM

77 Attachment A: PJM Instantaneus Reserve Check (IRC) Attachment A: PJM Instantaneus Reserve Check (IRC) IRC - Definitins f Terms / Calculatins Exhibit 17: PJM Instantaneus Reserve Check Terms & Relatinships Revisin: 38, Effective Date: 04/20/2018 PJM

78 Attachment A: PJM Instantaneus Reserve Check (IRC) Exhibit 18: Definitins f PJM Instantaneus Reserve Check Terms Nte: Reserve quantities must reflect current regulatin assignments. Revisin: 38, Effective Date: 04/20/2018 PJM

79 Attachment A: PJM Instantaneus Reserve Check (IRC) Exhibit 19: Sample Cmpleted Instantaneus Reserve Check Cmpany Unit Data IRC Frm Data Entry Guide 1. Reserve data pre-ppulated frm PJM Markets and EMS systems n a Unit by Unit basis. 2. The user has the ptin t acknwledge reserve values fr all units r n a per unit basis. 3. Any changes that actually impact IRC values shuld be submitted via edart r Markets Gateway, as applicable. Revisin: 38, Effective Date: 04/20/2018 PJM