2010 Report - Pennsylvania Public Utility Commission

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Figure 3 PJM RTO service territoryOn April 1, 2002, PJM West becameoperational, broadening the regional scope ofthe electric grid operator for the Mid-AtlanticRegion, to include Allegheny Power andmarking the first time, nationally, that twoseparate control areas were operated under asingle energy market and a single governancestructure.On May 1, 2004, PJM began managing the flowof wholesale electricity over CommonwealthEdison’s 5,000 miles of transmission lines inIllinois, making PJM the world’s largest gridoperator, meeting a peak demand of 87,000 MW. On Oct. 1, 2004, PJM began managingAmerican Electric Power’s (AEP’s) eastern control area, including 22,300 miles of high-voltagetransmission lines within a seven-state area and 23,800 MW of generating capacity. At the sametime, Dayton Power and Light integrated into the PJM RTO with 1,000 miles of transmission linesand 4,450 MW of generation. Also, 20 municipal electric companies, cooperatives and generatorsin the AEP area joined PJM. On Jan. 1, 2005, PJM began managing the wholesale flow ofelectricity for Duquesne Light Company, with 3,400 MW of capacity and 620 miles oftransmission lines. These entities, including Allegheny, comprise PJM West.Virginia Electric and Power (Dominion) was integrated into the PJM RTO on May 1, 2005.Dominion’s control area, covering parts of Virginia and North Carolina, operates separately underthe single PJM energy market as PJM South, including an additional 6,100 miles of transmissionlines and 26,500 MW of generating capacity.On Aug. 17, 2009, FirstEnergy Service Company filed a request with FERC to consolidate all ofits ATSI 15 transmission assets, currently operated by MISO, into the PJM RTO. ATSI has 32interconnections with PJM, but only three with MISO. Moving ATSI into the PJM RTO isexpected to reduce congestion and increase efficiency across both RTOs. The integration, whichwas approved by FERC on Dec. 17, 2009, will become effective June 1, 2011.On May 20, 2010, Duke Energy Corporation announced its desire to move its Ohio and Kentuckyutilities from MISO to the PJM RTO by Jan. 1, 2012, which would increase PJM’s generatingcapacity by 2,379 MW. The subsidiaries would also add 5,800 MW to PJM’s system peak load.PJM manages a sophisticated regional planning process for generation and transmission expansionto ensure the continued reliability of the electric system. PJM is responsible for maintaining theintegrity of the regional power grid and for managing changes and additions to the grid toaccommodate new generating plants, substations and transmission lines. In addition, PJManalyzes and forecasts the future electricity needs of the region. Its planning process ensures thatthe growth of the electric system takes place efficiently, in an orderly fashion, and that reliability15 American Transmission Systems Inc., a subsidiary of FirstEnergy Corporation, has assets located within the footprintof FirstEnergy’s Ohio and Pennsylvania (Penn Power) utilities, including 7,100 circuit miles of transmission lines withnominal voltages of 345 kV, 138 kV and 69 kV.6Pennsylvania Public Utility Commission
is maintained. PJM also develops innovative programs, such as demand response initiatives andefforts to support renewable energy, to help expand supply options and keep prices competitive.PJM coordinates the continuous buying, selling and delivery of wholesale electricity throughrobust, open and competitive spot markets. In operating the markets, PJM balances the needs ofsuppliers, wholesale customers and other market participants, and continuously monitors marketbehavior. PJM has administered more than $103 billion in energy and energy-service trades sincethe regional markets opened in 1997.PJM exercises a broader reliability role than that of a local electric utility. PJM system operatorsconduct dispatch operations and monitor the status of the grid over a wide area, using telemetereddata from 74,000 points on the grid. This gives PJM a big-picture view of regional conditions andreliability issues, including those in neighboring systems.Midwest Independent System OperatorThe Midwest Independent System Operator (MISO) is the nation’s first RTO approved by FERC.MISO, with control centers in Carmel, Indiana, and St. Paul, Minnesota, is responsible formonitoring the electric transmission system, ensuring equal access to the transmission system andmaintaining and improving electric system reliability in 13 Midwest states and the Canadianprovince of Manitoba. See Figure 4.Figure 4 MISO footprintUtilities with 93,600 miles of transmission linescovering 750,000 square miles from Manitoba,Canada, to Kentucky have committed toparticipate in MISO. Pennsylvania PowerCompany is currently the only Pennsylvania utilityin MISO; however, as previously indicated, allFirstEnergy companies will be integrated into thePJM RTO by June 2011.On Dec. 10, 2008, Duquesne Light Companyannounced that it will not transition to MISO, asindicated earlier. Duquesne has decided to remainwith PJM, a decision which was approved by FERC on Jan. 29, 2009.Transmission Line ExpansionEffective Oct. 5, 2007, the U.S. Department of Energy (DOE) designated all or major portions ofWest Virginia, Pennsylvania, Maryland, Delaware, the District of Columbia, New Jersey, NewYork and Virginia, as well as minor portions of Ohio, as the Mid-Atlantic Area National InterestElectric Transmission Corridor under Section 1221 of the Energy Policy Act of 2005. Thedesignation will remain in effect until Oct. 7, 2019. The corridor includes 52 out of Pennsylvania’s67 counties. Section 1221 gives FERC authority to approve the construction or modification ofelectric transmission facilities within a designated corridor if the state does not approve anapplication within one year. 16 See Figure 5.16 On Feb. 18, 2009, the U.S. Court of Appeals for the Fourth Circuit issued a decision reversing, vacating andremanding key elements of FERC’s final rule implementing its backstop siting authority under Section 216 of theElectric Power Outlook for Pennsylvania 2009-2014 7
Page 2 and 3: ELECTRIC POWER OUTLOOKFOR PENNSYLVA
Page 4 and 5: adequate reserve margin. Net capaci
Page 6 and 7: Section 3 - Regional ReliabilityReg
Page 8 and 9: Regional Reliability OrganizationsI
Page 10 and 11: Figure 1 NERC regionsNote: The high
Page 14 and 15: Figure 5 Mid-Atlantic Area National
Page 16 and 17: Trans-Allegheny Interstate LineThe
Page 18 and 19: September 2009. A Recommended Decis
Page 20 and 21: suppliers or purchased power from t
Page 22 and 23: AECs are earned when a qualified fa
Page 24 and 25: Smart Meters and Time-of-Use RatesS
Page 26 and 27: Section 2 - Historic and Forecast D
Page 28 and 29: Figure 10 Pennsylvania aggregate no
Page 30 and 31: Most utilities have employed a comb
Page 32 and 33: Figure 13 Pennsylvania residential
Page 34 and 35: Figure 15 Pennsylvania industrial u
Page 36 and 37: Figure 17 Average deviation in peak
Page 38 and 39: Summary of EDC DataThe following se
Page 40 and 41: Figure 27 Duquesne Light Company pe
Page 42 and 43: 2000. Average annual use per reside
Page 44 and 45: Figure 32 Metropolitan Edison Compa
Page 46 and 47: Figure 33 Pennsylvania Electric Com
Page 48 and 49: percent and an industrial growth ra
Page 50 and 51: Figure 38 Pennsylvania Power Compan
Page 52 and 53: Figure 39 PPL Electric Utilities Co
Page 54 and 55: PECO's 2009 summer peak load, occur
Page 56 and 57: Figure 44 PECO Energy Company avera
Page 58 and 59: commercial (24.3 percent). Average
Page 60 and 61: Figure 48 West Penn Power Company a
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Figure 50 UGI Utilities Inc. peak l
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sales, followed by residential with
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Figure 53 Wellsboro Electric Compan
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system and to make recommendations
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• Innovative resource planning an
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Figure 54 RFC 2009-2018 reserve mar
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The MISO reserve margin for existin
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PennsylvaniaThe Pennsylvania electr
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GWh more than they generated. Figur
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Susquehanna Steam Electric Station,
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Table A01 Duquesne Light CompanyTab
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Table A09 Pennsylvania Electric Com
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Table A17 PPL Electric Utilities Co
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Table A25 West Penn Power CompanyTa
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Status of Pennsylvania's Plant Addi
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Appendix C - Existing Generating Fa
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Pennsylvania's Existing Electric Ge
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Nuclear Power Plants in Pennsylvani
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2010 Report - Pennsylvania Public Utility Commission

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