2010 Report - Pennsylvania Public Utility Commission

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Regional Reliability OrganizationsIn Pennsylvania, all major electric distribution companies are interconnected with neighboringsystems extending beyond state boundaries. These systems are organized into regional entities –regional reliability councils – which are responsible for ensuring the reliability of the bulk electricsystem.North American Electric Reliability CorporationIn 1968, electric utilities formed the North American Electric Reliability Council (NERC) topromote the reliability of the electricity supply for North America. Since its formation, NERC hadoperated as a voluntary organization, dependent on reciprocity and mutual self-interest. Due to therestructuring of the electric utility industry, NERC was subsequently transformed from a voluntarysystem of reliability management to one that is mandatory, with the backing of U.S. and Canadiangovernments. The mission of the new organization is to develop, promote and enforce reliabilitystandards for the bulk electric system.On July 20, 2006, NERC was certified as the Electric Reliability Organization (ERO) in the UnitedStates, pursuant to Section 215 of the Federal Power Act of 2005. Included in this certificationwas a provision for the ERO to delegate authority for the purpose of proposing and enforcingreliability standards by entering into delegation agreements with regional entities.Effective Jan. 1, 2007, NERC and the North American Electric Reliability Corporation merged,with the latter being the surviving entity (also referred to as NERC). As of June 18, 2007, theFederal Energy Regulatory Commission (FERC) granted NERC the legal authority to enforcereliability standards, and made compliance with those standards mandatory.NERC oversees the reliability of a bulk power system that provides electricity to 350 millionpeople, has a total demand of 830,000 megawatts (MW), has 211,000 miles of high-voltagetransmission lines (230,000 volts and greater), and represents more than $1 trillion worth of assets.NERC’s members currently include eight regional reliability councils. Members of these regionalcouncils include investor-owned utilities, federal and provincial entities, rural electric cooperatives,state/municipal and provincial utilities, independent power producers, independent systemoperators, merchant electricity generators, power marketers, and end-use electricity customers, andaccount for virtually all the electricity supplied in the United States, Canada, and a portion of BajaCalifornia Norte, Mexico. The regional council operating in Pennsylvania is ReliabilityFirstCorporation, which is the successor organization to three former NERC Regional ReliabilityCouncils: MAAC, ECAR and MAIN.NERC’s North American Transmission Forum, formed in 2007 to improve the operations andreliability of the electric power systems in North America, has recently organized as anindependent non-profit corporation. The Forum’s membership has grown to 54 transmissionowning utilities in the United States and Canada, representing 70 percent of the countries’ totalelectricity demand. Members include Allegheny Power, Duquesne Light, Exelon, FirstEnergy,PJM Interconnection and PPL.2Pennsylvania Public Utility Commission
NERC establishes criteria, standards and requirements for its members and all control areas. Allcontrol areas must operate in a manner such that system instability, uncontrolled system separationand cascading outages will not occur as a result of the most severe single contingency.As of Dec. 31, 2009, NERC had 1,950 active violations, the majority of which were being assessedand validated; others were in settlement negotiations, or were being addressed in a Notice ofPenalty filing with FERC. During 2009, NERC filed 221 enforcement actions with FERC.Enforcement actions are designed to ensure and improve bulk power system reliability bymitigating risk; ensuring transparent, efficient and fair processing; and communicating lessonslearned to the industry. 11NERC defines the bulk electric system as follows:As defined by the Regional Reliability Organization, the electrical generationresources, transmission lines, interconnections with neighboring systems, andassociated equipment, generally operated at voltages of 100 kV or higher. Radialtransmission facilities serving only load with one transmission source are generallynot included in this definition. 12On March 18, 2010, FERC issued a Notice of Proposed Rulemaking 13 directing NERC to includeall electric transmission facilities of 100,000 volts (100 kV) or more in its definition of whatconstitutes the “bulk electric system” subject to mandatory reliability standards under the EnergyPolicy Act of 2005. The proposal is intended to eliminate the discretion that regional entities haveto define the transmission facilities that comprise their “bulk electric systems,” but allow regionalcouncils to seek NERC and FERC approval if they wish to make variations from the 100 kVstandard. FERC notes that there is a strong technical justification for a standard 100 kV threshold,pointing out that facilities rated at 115 kV and 138 kV have either caused or contributed tosignificant bulk electric system disturbances and cascading outages. FERC has determined that thedefinition needs to be modified in order to protect the reliability of the Nation’s Bulk-PowerSystem.Figure 1 provides a map of the eight NERC Regions.11 NERC, Annual Report 2009, May 2010.12 “Glossary of Terms Used in Reliability Standards,” adopted by NERC Board of Trustees: Feb. 12, 2008.13 Docket No. RM09-18-000.Electric Power Outlook for Pennsylvania 2009-2014 3
Page 2 and 3: ELECTRIC POWER OUTLOOKFOR PENNSYLVA
Page 4 and 5: adequate reserve margin. Net capaci
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Page 10 and 11: Figure 1 NERC regionsNote: The high
Page 12 and 13: Figure 3 PJM RTO service territoryO
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
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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
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commercial (24.3 percent). Average
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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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