Capacity Shortages RE Module. Interconnection Training Program PJM State & Member Training Dept.

Disclaimer This training presentation is provided as a reference for preparing for the PJM Certification Exam. Note that the following information may not reflect current PJM rules and operating procedures. For current training material, please visit: http://pjm.com/training/training-material.aspx PJM 2014

Capacity Shortages RE Module Interconnection Training Program PJM State & Member Training Dept. 1

Agenda Basics Alerts Warnings/Actions Statistics Emergency Procedure Website 2

Emergency Procedures An emergency in PJM is defined as: An abnormal system condition requiring manual or automatic action to maintain system frequency, prevent loss of firm load, equipment damage or tripping of system elements that could adversely affect reliability of an electric system or the safety of persons or property Capacity deficiency or capacity excess conditions A fuel shortage requiring departure from normal operating procedures Abnormal natural events or man-made threats to reliability Including events external to PJM that may require PJM action Many emergencies involve a shortage of reserve generation OR inability to deliver generation to load 3 2009 PJM 3

Emergency Procedures Manual Reference 4

Emergency Procedures Manual Reference 5

Emergency Procedures Manual Reference 6

Emergency Procedures Manual Reference 7

Emergency Procedures PJM Control Area Carried out together across PJM RTO up to Load Dump assuming no transmission or other operating limitations. Will be directed by PJM Procedures may be issued by control zone if transmission limitations exist When procedures get to load dump, the control zone(s) that is capacity deficient will shed load. Determination of who is capacity deficient will be each control zone comparison of their generation with load Adjusted based on zone s net capacity position Adjusted based on any external purchases allocated to a control zone 8

Emergency Procedures PJM Manual M-13 - Page 14 The PJM dispatcher has the flexibility of implementing the emergency procedures in whatever order is required to ensure overall system reliability. The PJM OI dispatcher has the flexibility to exit the emergency procedures in a different order than they are implemented when conditions necessitate. Each procedure related to one side of the scale or the other: Maximizing supply OR Minimizing demand Categories Alerts Warnings Actions 9

NERC Energy Emergency Alerts (EEA s) Documentation found in Attachment 1 of NERC Standard EOP- 002 (Capacity and Energy Emergencies) Issued by Reliability Coordinator (via the Reliability Coordinators Information System - RCIS) for capacity and energy shortages Three Levels Provides common terminology for Reliability Coordinators to use when explaining energy emergencies to each other Levels may be declared in whatever order necessary, no need to proceed sequentially 10

NERC Energy Emergency Alerts EEA Level 1 Issued when a Control Area foresees or is experiencing conditions where all available resources are committed Concern about being able to sustain required Operating Reserves When does PJM issue? Max Emergency Generation Alert 11

NERC Energy Emergency Alerts EEA Level 2 Issued when a Control Area foresees or has implemented procedures up to but excluding interruption of firm load commitments Public Appeals, Voltage Reduction, Load Management, Interruption of Non-firm contracts When does PJM issue? Emergency Mandatory Load Management Reductions Action, or a Voltage Reduction Action (whichever issued first) 12

NERC Energy Emergency Alerts EEA Level 3 Issued when a Control Area foresees or has implemented firm load obligation interruption Prior to declaring: All generation on-line, regardless of cost All purchases made, regardless of cost All non-firm sales recalled All contractually interruptible load curtailed When does PJM issue? Manual Load Dump Action 13

Agenda Basics Alerts Warnings/Actions Statistics Emergency Procedure Website 14

Maximum Emergency Generation Alert Emergency Levels Alerts Primary Reserve Alert Voltage Reduction Alert Primary Reserve Warning Warnings Actions Voltage Reduction Warning Reduction of Non-critical Plant Load Manual Load Dump Warning Maximum Emergency Generation Emergency Mandatory Load Management Reductions Emergency Voluntary Energy Only Demand Response Reductions Voltage Reduction Curtailment of Non-essential Building Load All capacity related Alerts/Warnings/Actions are to be communicated vial the All-Call to local Transmission and Generation Owners and posted to the Emergency Procedure website Manual Load Dump 15

Capacity Shortage Alerts Alerts are issued in advance (Day-ahead) of a scheduled load period to allow sufficient time for members to prepare for anticipated initial capacity shortages The intent of the alert is to keep all affected system personal aware of the forecast and/or actual status of the PJM RTO Maximum Emergency Generation Alert Primary Reserve Alert Voltage Reduction Alert 16

Capacity Shortages - Alerts Maximum Emergency Generation Alert Primary Reserve Alert Voltage Reduction Alert EEA(Energy Emergency Alert) NERC EEA 1 ISSUED Maximum Emergency Generation Alert Purpose To provide an early alert that PJM Emergency Procedures may be required Trigger When Maximum Emergency Generation is called into the operating capacity Operating Reserve Requirement is greater than scheduled Operating Reserve. 17

Estimated Operating Reserve Less than Operating Reserve Objective ME Gen Econ Gen & Imports Pri Reserve Objective Op Reserve Objective Load 122 121 120 119 118 117 116 115 114 113 112 111 110 109 108 Load and Capacity Profile 9:00 10:00 11:00 12:00 13:00 14:00 18 15:00 16:00 17:00 18:00 19:00 Hour ending

Capacity Shortages - Alerts Maximum Emergency Generation Alert PJM Actions Notifications Internal PJM Management External Members; Issue NERC EEA Level 1 Performs a situation analysis and prepares capacity/load/interchange/ reserve projections for that day and future periods -- Issues the alert to members, stating the amount of estimated operating reserve and the requirement -- Reports any significant changes in the estimated operating reserve capacity -- Sets up Supplementary Status Report if required May not request until operating day for which alert is in effect 19

Capacity Shortages - Alerts Maximum Emergency Generation Alert PJM Actions Review the level of dependency on External Transactions to serve PJM load and to determine if the need to implement Capacity Benefit Margin is required 20

Capacity Shortages - Alerts Maximum Emergency Generation Alert Member Actions Notifications Management, generating stations, key personnel Review plans to determine if any maintenance or testing, scheduled or being performed, on any monitoring, control, transmission, or generating equipment can be deferred or halted Report any, or all fuel/environmental limited facilities as they occur and update PJM Dispatch as needed Suspend any high risk testing of generating or transmission equipment 21

Capacity Shortages Alerts Maximum Emergency Generation Alert Primary Reserve Alert Voltage Reduction Alert Primary Reserve Alert Purpose To alert members of the anticipated shortage of operating reserve capacity for a future critical period Trigger When the estimated operating reserve is less than the forecasted primary reserve requirement 22

Estimated Operating Reserve Less than Primary Reserve Requirement ME Gen Econ Gen & Imports Pri Reserve Objective Op Reserve Objective Load 122 121 120 119 118 117 116 115 114 113 112 111 110 109 108 Load and Capacity Profile 9:00 10:00 11:00 12:00 13:00 14:00 23 15:00 16:00 17:00 18:00 19:00 Hour ending

Capacity Shortages - Alerts Primary Reserve Alert PJM Actions Notifications to PJM management and member companies States the amount of estimated operating reserve capacity and the requirement Report significant changes in estimated operating reserve capacity Consider the need to obtain a temporary variance from environmental regulators for specific generators to assist in preventing load shed 24

Capacity Shortages - Alerts Primary Reserve Alert Member Actions Notifications Management, generating stations, key personnel Review plans to determine if any maintenance or testing, scheduled or being performed, on any monitoring, control, transmission, or generating equipment can be deferred or halted 25

Capacity Shortages - Alerts Maximum Emergency Generation Alert Primary Reserve Alert Voltage Reduction Alert Purpose To alert Members that a Voltage Reduction may be required in a future critical period Trigger When the estimated operating reserve capacity is less than the forecasted synchronized reserve requirement Voltage Reduction Alert 26

Capacity Shortages Alerts Voltage Reduction Alert PJM Actions Notifications Internal PJM Management External Members Give LCC s estimated hour of implementation Member Actions Notifications Management, generating stations, key personnel Take any necessary steps to expedite implementation of voltage reduction, should one become necessary (Transmission Dispatch/LSE s) SOS members consider issuance of Public Appeals PJM marketers proceed on heightened awareness regarding potential need for Emergency Energy purchases 27

Public Appeals Issued via media outlets (radio,tv) to inform and request customer conservation SOS Transmission determines when to release and scope PJM and member Communications depts can tailor messages for specific situations Messages give instructions for conservation to public Lower thermostats, close blinds Reduce appliance usage during peak hours 28

Public Appeals Draft messages are in Manual 13 Attachment A Level 1 Cold/Hot Weather Advisory (C1) (H1) Level 2 Statement/News Release for Cold/Hot Weather Emergency (C2) (H2) Released following Load Management programs Level 3 Statement/News Release for Cold/Hot Weather Emergency (C3) (H3) Released following Voltage Reduction Level 4 Statement/News Release for Cold/Hot Weather Emergency (C4) (H4) Released following Manual Load Dump Messages for exiting emergencies 29

Agenda Basics Alerts Warnings/Actions Statistics Emergency Procedure Website 30

Capacity Emergency Warnings/Actions Warnings and Actions are issued in real-time Warnings are issued to inform members of actual capacity shortages or contingencies that may jeopardize reliability A Warning typically precedes an associated Action Warnings keep all affected system personnel aware of the forecast and/or actual status of the PJM RTO M-13 combines the Warnings and Actions in their most probable sequence based on notification requirements during extreme peak conditions 31

Capacity Shortages - WARNINGS Warnings are issued during present operations To inform Members of actual capacity shortages and contingencies that may affect the reliability of the PJM Control Area Three Warnings: Primary Reserve Warning Voltage Reduction Warning and Reduction of Non-Critical Plant Load Manual Load Dump Warning 32

Capacity Shortage Actions Five Actions Maximum Emergency Generation Emergency Mandatory Load Management Reductions Emergency Voluntary Energy Only Demand Response Reductions Voltage Reduction/Curtailment of Non-Essential Load Manual Load Dump 33

Actions Actions Maximum Emergency Generation Emergency Mandatory Load Management Reductions Emergency Voluntary Energy Only Demand Response Reductions Voltage Reduction Curtailment of Non- Essential Building load Short Lead Time Long Lead Time Load Management Manual Load Dump 34 2009 PJM 34

Emergency Mandatory Load Management Reductions Restrictions Applies to any site registered in the PJM Demand Response Program as a: - Capacity resource of interruptible load for reliability - Demand resource of interruptible load for reliability Issued to provide additional load relief using controllable load management programs (Load relief is expected to be issued after initiating Maximum Emergency Generation Participating customers receive capacity credits and/or reduced retail rates for reducing load during emergencies PJM and/or Transmission Operator controlled and directed 35

Emergency Mandatory Load Management Reductions - Types PJM recognizes three types of Load Management: Direct Load Control (DLC) Load management which is initiated directly by the LSE s market operations center, employing a communication signal to cycle equipment Firm Service Level (FSL) Load management achieved by a customer reducing its load to a pre-determined level (the Firm Service Level), upon notification from the LSE s market operations center Guaranteed Load Drop (GLD) - Load management achieved by a customer reducing its load by a pre-determined amount (the guaranteed load drop), upon notification from the LSE s market operations center 36

Emergency Mandatory Load Management Reductions Restrictions PJM Actions: - Notifications to PJM management, public information personnel, and member companies - Use of public appeals to conserve electricity usage - Via the PJM All-Call, PJM requests Curtailment Service Providers to implement curtailment procedures - Via the RCIS, PJM issues a NERC Energy Emergency Alert Level 2 37

Emergency Mandatory Load Management Reductions Restrictions PJM Member Actions: - Member Curtailment Service Providers implement load reductions as requested by PJM - Notify member company management and consider the use of public appeals - Notify government agencies - Long Lead Time: curtailment achieved in 1-2 hours - Short Lead Time: curtailment achieved in 1 hour or less 38

Emergency Mandatory Load Management Reductions Restrictions Program Restrictions: Interruptible by PJM for 10 times during planning period (June May) From June through September, interruptible for up to six hours in duration from 12:00 to 20:00 on non-holiday weekdays From October through May, interruptible for up to six hours in duration from 14:00 to 22:00 on non-holiday weekdays Able to be implemented within 2 hrs Not used to assist adjacent Control areas 39

Primary Reserve Warning Primary Reserve Warning Voltage Reduction and Reduction of Non-critical Plant Load Manual Load Dump Warning Primary Reserve Warning Purpose To warn the Local Control Centers that the Primary Reserve is less than required and operations are getting critical Trigger Issued when the Primary Reserve is less than the Primary Reserve requirement but greater than the Synchronized Reserve requirement 40

Primary Reserve Warning PJM Actions: - Issues a warning to members and PJM management stating the amount of adjusted primary reserve capacity and the requirement - Notifies PJM public information personnel - Assure that all available equipment is scheduled and requested supplemental reserve has been brought into the primary reserve - Ensures all deferrable maintenance or testing on the communications and control systems has halted 41

Primary Reserve Warning PJM Actions: - Obtain a temporary variance from environmental regulators for specific generators to assist in preventing load shedding - Cancel warning when appropriate 42

Primary Reserve Warning PJM Member Actions: - Notify management - Advise all stations and key personnel - Prepare to load primary reserve, if required - Ensure all deferrable maintenance or testing affecting capacity or critical transmission is halted - PJM Marketers remain on a heightened awareness regarding regarding PJM conditions and the potential need for Emergency Energy Purchases 43

Actions Maximum Emergency Generation Emergency Mandatory Load Management Reductions Short Lead Time Actions Emergency Voluntary Energy Only Demand Response Reductions Voltage Reduction Curtailment of Non- Essential Building load Long Lead Time Load Management Manual Load Dump 44 2009 PJM 44

Maximum Emergency Generation Purpose To increase generation above the maximum economic level Trigger Real-time Generation is needed to meet the load demand that is greater than the highest incremental cost level 45

Load Exceeds Maximum Economic Generation Levels ME Gen Econ Gen & Imports Load 122 121 120 119 118 117 116 115 114 113 112 111 110 109 108 Load and Capacity Profile 9:00 10:00 11:00 12:00 13:00 14:00 46 15:00 16:00 17:00 18:00 19:00 Hour ending

Maximum Emergency Generation Action PJM Actions: - Issue the Maximum Emergency Generation Action - Notify PJM management, PJM public information personnel, and member dispatchers - Implements the Emergency Bid Process, requesting bids by posting messages to selected PJM web-sites, RCIS, and contacting neighboring Control Areas - Suspend regulation on all resources except for hydroelectric - Recalls off-system capacity sales from network resources 47

Maximum Emergency Generation Action PJM Actions: - Declares Maximum Emergency Generation and begins to load Maximum Emergency or start purchases of Emergency Energy bids based on economics and availability - Loads Maximum Emergency Generation incrementally as required (Max Emergency CT s are loaded prior to Max Emergency Steam in order to preserve synchronized reserve - Initiate scarcity pricing based on the loading of Maximum Emergency Generation or acceptance of Emergency Energy Purchases in the appropriate Scarcity Pricing Region 48

Maximum Emergency Generation Action PJM Member Actions: - Notify management - Recall off-system capacity sales that are recallable - Suspend regulation, as requested, and load all units to the Maximum Emergency Generation level, as required - Notify PJM of any Maximum Emergency Generation loaded prior to PJM requesting Maximum Emergency Generation be loaded 49

Maximum Emergency Generation Emergency Bid Process Member is responsible for delivery and transmission service PJM attempts to provide 60 minutes notice before energy is required Fax bid form and call to verify receipt Manual 13 Attachment D 50

Emergency Bid Process Bids may also be called into a pre-assigned, recorded voice line that should be structured as follows: - Time of energy available - Amount of energy available - Price of energy - Duration (hours) energy is available and limits on minimum time required to take - Notification time to cancel/accept - PJM Member identification - Interface and contract path 51

Emergency Bid Process PJM accepts offers and schedules the energy using the following guidelines: - Energy is accepted based on economics; based on energy price and minimum hours - Energy schedules will be adjusted to correct economics if time permits - Similarly priced offers are selected based on timestamps; first in, first selected Bids do not set the Locational Marginal Price 52

Scarcity Pricing Implementation Pricing in the entire Scarcity Pricing Region will be set equal to the highest market-based offer price of all generating units operating under PJM direction to supply either energy or reserves on a real-time dispatch basis No offer capping for transmission constraints may be initiated or continued in the Scarcity Pricing Region while Scarcity Pricing is in effect Generation in the Scarcity Pricing Region shall remain subject to the overall offer cap of $1,000/MWh A generator outside of the SPR that is used to control for the transmission constraint that caused Scarcity Pricing shall be paid the higher of the Scarcity Region Price or its offer price 53

Scarcity Pricing Implementation - Issued for the following trigger points: - Online generators, partially designated as Max Emergency, dispatched into emergency output levels - Online generation, entirely designated as Max Emergency, dispatched above designated minimum load points, if they are currently on-line and operating at their minimum load points because of restrictive operating parameters associated with the generators - Offline generation, entirely designated as Max Emergency, dispatched having start-up and notification times less than or equal to 30 minutes 54

Scarcity Pricing Implementation Issued for the following trigger points: - Voltage Reduction action - Emergency Energy purchases - Manual Load Dump action Whenever any of the above actions trigger Scarcity Pricing, PJM will post the message on the Emergency Procedure Website describing the action and include in the posting the Scarcity Pricing Region for which the action is taken 55

Scarcity Pricing Implementation In defining scarcity conditions, PJM will consider generators that have been classified as Maximum Emergency only if they in one of the following categories: - Environmental limits: hard cap on its run hours that will temporarily limit temporarily limit its availability - Fuel limitations: physical event beyond the control of the unit s owner resulting in a temporary interruption of fuel supply and there is limited on-site fuel storage - Temporary emergency physical conditions (Continued) 56

Scarcity Pricing Implementation Temporary megawatt additions: provide additional MW s on a temporary basis by: 1. Oil topping 2. Boiler overpressure 3. Other techniques and such MW s are not otherwise available 57

Scarcity Pricing Implementation Scarcity Pricing Criteria: - Consist of at least two entire transmission zones - Consist of transmission zone and sub-zones with common boundaries - Transmission import or transfer must be limited by EHV (500 kv or greater) constraints - Consist of pricing nodes that have a 5% or greater positive power distribution factor (dfax) relative to the constraints 58

Scarcity Pricing Implementation If a Maximum Emergency Generation Alert is issued prior to 1800 hrs on the day prior to the operating day, the only units for which all or part of their capability may be designated as Maximum Emergency are those meeting the criteria in the previous slide If a Maximum Emergency Generation Alert is issued during the operating day for which the alert is effective, generation owners are responsible for removing any unit availability from the Maximum Emergency Generation category that does not meet the criteria within 4 hours of the issuance of the alert 59

Scarcity Pricing Implementation Scarcity Pricing will be terminated in a Scarcity Region when demand and reserves can be fully satisfied with generation that is not designated as Max Emergency Scarcity conditions will not be terminated if the following conditions exist in the Scarcity Region: - Voltage reduction action - Emergency energy purchases from offers that do not have minimum purchase requirements of greater than 30 minutes attached to the offer - Manual load dump action 60

Emergency Voluntary Energy Only Demand Response Reductions Purpose - To request end-use customers who participate in the Emergency Voluntary Energy Only Demand Response Reductions to reduce load during emergency conditions Trigger - Additional load relief is still needed Program criteria: - Any site registered in the PJM Demand Response Program as an emergency energy only resource - Reductions are strictly voluntary 62

Emergency Voluntary Energy Only Demand Response Reductions PJM Actions: - Issues action via the All-Call and posts message on website - Notifies PJM management, PJM public information personnel, and PJM Markets personnel - Have Curtailment Service Providers with Demand Resources reduce load PJM Member Actions: - Notify management of the emergency procedure 63

Voltage Reduction & Reduction of Non-Critical Plant Load Primary Reserve Warning Voltage Reduction Warning and Reduction of Non-Critical Plant Load Manual Load Dump Warning Voltage Reduction Warning (& Reduction of Non-critical Plant Load) Purpose To inform the Member Companies that Synchronized Reserve is less than required and present operation has deteriorated such that voltage reduction may be required Trigger When actual Synchronized Reserve is less than the Synchronized Requirement All secondary and primary reserve (except MW s in Max Emergency) are first moved to Synchronized Reserve status 64

Voltage Reduction & Reduction of Non-Critical Plant Load PJM Actions: - Issues the warning to members and PJM management stating the amount of adjusted synchronized reserve capacity and the requirement - Notification of PJM public information personnel - Notification of the Department of Energy - Cancels the warning, when appropriate 65

Voltage Reduction & Reduction of Non-Critical Plant Load PJM Member Actions: - Notification to member company management - Notification to government agencies - Advise all stations and key personnel - Order all generating stations to curtail non-essential station light and power - Prepare for implementation of a Voltage Reduction Action - Implement load management programs, in addition to interrupting curtailable customers - Awareness of need for Emergency Energy Purchases 66

Manual Load Dump Warning Primary Reserve Warning Voltage Reduction Warning and Reduction of Non-Critical Plant Load Manual Load Dump Warning Manual Load Dump Warning Purpose To warn Member Companies of increasingly critical system conditions that may require manually dumping load Trigger When the Primary Reserve is less than the largest generating unit or the loss of a transmission facility jeopardizes reliability after all possible measures have been taken to increase reserves - Amount of load and the areas of location are specified 67

Manual Load Dump Warning PJM Actions: - Issue the warning to members and PJM Management, stating the estimated amount of load relief needed - Notification to PJM public information personnel - Notification to include the FERC Division of Reliability - Establish an awareness with Transmission Operators of the need for action with minimum delay - Examine EHV bus voltages 68

Manual Load Dump Warning PJM Member Actions: - Notification to member management - Notification to government agencies - Advise all station and key personnel - Review local procedures and prepare to dump load in the amount requested - Reinforce internal communications so that load dumping can occur with a minimum delay - Marketers remain on a heightened awareness of the potential need for Emergency Energy Purchases 69

Actions Actions Maximum Emergency Generation Emergency Mandatory Load Management Reductions Emergency Voluntary Energy Only Demand Response Reductions Voltage Reduction Curtailment of Non- Essential Building load NERC EEA 2 ISSUED Short Lead Time Long Lead Time Manual Load Dump 70

Voltage Reduction Action Purpose To reduce load to provide a sufficient amount of reserve to maintain tie flow schedules and preserve limited energy resources OR to increase transmission system voltages Trigger Load relief still needed to maintain ties Curtailment of non-essential building load may be implemented prior to, but no later than the voltage reduction. 71

Voltage Reduction Action Voltage is reduced at distribution levels by 2.5% to 5% of nominal values depending on the area Increases transmission voltages Produces a 2-3% decrease in system load Generally not noticed by customers Lights dimmer, slower heating City of Chicago limited to 2.5% voltage reduction 72

Effects of Voltage Reduction in BC/PEPCO in 2005 Reduction in MW Load Reduction in VAR Load 73

Effects of Voltage Reduction in BC/PEPCO in 2005 74

Voltage Reduction Action PJM Actions: - Notification to PJM Management, PJM public information personnel, and member companies - Advise members to use public appeals for conservation of energy - Notification to the Department of Energy - Issue a system-wide or Control Zone-specific Public Media Message H-3 - Investigates loading of shared reserves with neighboring systems prior to a voltage reduction 75

Voltage Reduction Action PJM Actions: - Issues the order for a 2.5% to 5% voltage reduction - Issues a NERC Energy Emergency Alert Level 2 via the RCIS - Initiates Scarcity Pricing based on the issuance of a voltage reduction in the appropriate Scarcity Pricing Region - Cancels the reduction, when appropriate 76

Voltage Reduction Action PJM Member Actions: - Notification of member company management - Notification of government agencies - Consider the use of public appeals to conserve energy - Take steps to implement a voltage reduction 77

Curtailment of Non-Essential Building Load Purpose: - The purpose is to provide additional relief, to be expedited prior to, but no later than the same time as the voltage reduction 78

Curtailment of Non-Essential Building Load PJM Actions: - Notification to PJM Management, PJM public information personnel, and member companies - Advise members to utilize public appeals to conserve energy - Issue the request to curtail non-essential building load - Cancel the request, when appropriate 79

Curtailment of Non-Essential Building Load PJM Member Actions: - Notification of member company management - Notification of government agencies - Consider the use of public appeals to conserve energy - Switch off all non-essential light and power in companyowned commercial, operations, and administration offices 80

Manual Load Dump Action Issued to provide relief when all other possible means of supplying internal load have been exhausted to prevent a catastrophe within PJM or to maintain tie schedules so as not to jeopardize the reliability of other interconnected regions Implemented when PJM cannot provide adequate capacity to meet load or critically overloaded transmission lines or equipment cannot be relieved in any other way and/or low frequency operation occurs within a part(s) of the RTO 82

Manual Load Dump Action PJM Actions: - Verifies that separations have not occurred and that load dumping is desirable on the system being controlled - Instructs members to suspend all remaining regulation - Determines which Control Zone(s) are capacity deficient and the relative proportion of deficiency - Estimates the total amount of load to be dumped - Orders appropriate members to dump load - Notification to PJM Management, PJM public information personnel, and member companies 83

Manual Load Dump Action PJM Actions: - Advise members to consider the use of public appeals to conserve energy - Notification to other Control Areas through the RCIS - Notifications to DOE, FEMA, and NERC offices - Notification to FERC via the FERC Division of Reliability s electronic pager system - Issue a NERC Energy Emergency Alert Level 3 - PJM Management issues a system-wide or Control Zone specific Public/Media Notification Message H-4 (Should be issued prior to Manual Load Dump Action) 84

Manual Load Dump Action PJM Actions: - Initiates Scarcity Pricing based on the issuance of a Manual Load Dump Action in the appropriate Scarcity Pricing Region - Cancels the action and restores required regulation, when appropriate - If a partial restoration of the load dumped is requested by PJM, confirmation of restored load by each member must be made prior to any further load restoration - If UFLS is insufficient to return frequency to acceptable ranges, PJM will dump sufficient load to restore system frequency 85

Manual Load Dump Action Member Actions: - Suspend regulation, as required, prior to load dump - Notification member company management of the procedure - Notification of government agencies - Consider the use of public appeals to conserve energy - Promptly dump load equal to or in excess of the company s allotment of load dump - Maintain the requested amount of load relief until the load dump order is cancelled by PJM - Load dump plan should consider/recognize priority/critical load - Report amount of load curtailed/restored upon implementation 86

Manual Load Dump Action Process described here pertains only to capacity deficient situations For transmission constraints or voltage problems, load dump will be ordered in areas where it is most effective If Mid-Atlantic region is deemed deficient, total load shed must be further broken down by Manual Load Dump Allocation Tables Manual M-13 Attachment E Manual Load Dump last utilized in PJM on January 19, 1994 87 2009 PJM 87

Manual Load Dump Action 88

Agenda Basics Alerts Warnings/Actions Emergency Procedure Website 89

Access to PJM Emergency Procedure Messages Emergency Procedures Messages can be accessed by using any of the following: PJM Website Homepage edata OASIS esuite 90

2008 PJM 91

Emergency Procedure Application 92 2009 PJM 92

Emergency Procedure Application 93 2009 PJM 93

Summary Know where your emergency procedures are. Know your part as a System Operator. KEEP THE LIGHTS ON! 94

Questions 95

Disclaimer: PJM has made all efforts possible to accurately document all information in this presentation. The information seen here does not supersede the PJM Operating Agreement or the PJM Tariff both of which can be found by accessing: http://www.pjm.com/documents/agreements/pjmagreements.aspx For additional detailed information on any of the topics discussed, please refer to the appropriate PJM manual which can be found by accessing: http://www.pjm.com/documents/manuals.aspx 96

Resources and References PJM Manual 13 Emergency Procedures 97