2010 Report - Pennsylvania Public Utility Commission

Section 3 – Regional ReliabilityRegional Reliability AssessmentsThe passage of the Pennsylvania Electricity Generation Customer Choice and Competition Actsubstantially changed the Commission's jurisdiction as well as the Commission’s ability to compiledata from the generation sector. As a result, most information on generation and transmissioncapacity is regional. Therefore, this section summarizes the regional reliability assessments ofNERC, RFC and PJM for generation and transmission capability.The reliability of the interconnected bulk power system is defined in terms of two basic andfunctional aspects. Adequacy is the ability of the bulk power system to supply the aggregateelectrical demand and energy requirements of the customer at all times, taking into accountscheduled and reasonably expected unscheduled outages of system elements. OperatingReliability is the ability of the bulk power system to withstand sudden disturbances such as electricshort circuits or unanticipated loss of system elements from credible contingencies. Adequacy canbe expressed in terms of either reserve margin or capacity margin. Reserve margin is thedifference between available resources and net internal demand (total demand less dispatchable,controllable capacity demand response), expressed as a percentage of net internal demand.Capacity margin is the difference between available resources and net internal demand, expressedas a percentage of available resources.North American Electric Reliability CorporationThe North American Electric Reliability Corporation’s (NERC’s) mission is to ensure thereliability of the bulk power system in North America. To achieve this objective, NERC developsand enforces reliability standards; monitors the bulk power system; assesses and reports on futuretransmission and generation adequacy; and offers education and certification programs to industrypersonnel. NERC is a non-profit, self-regulatory organization that relies on the diverse andcollective expertise of industry participants that comprise its various committees and sub-groups. Itis subject to oversight by governmental authorities in Canada and the United States. NERCassesses and reports on the reliability and adequacy of the North American bulk power systemaccording to eight regional areas. The users, owners, and operators ofthe bulk power system within these areas account for virtually all theelectricity supplied in the United States, Canada, and a portion of BajaCalifornia Norte, Mexico.Reliability Assessment65 NERC, 2009 Long-Term Reliability Assessment, October 2009.The 2009 Long-Term Reliability Assessment 65 represents NERC’sindependent judgment of the reliability and adequacy of the bulkpower system in North America for the coming 10 years. NERC’sprimary purpose in preparing this assessment is to identify areas ofconcern regarding the reliability of the North American bulk powerElectric Power Outlook for Pennsylvania 2009-2014 61