The following describes the different types of reliability projects and their cost allocation approach in PJM:
RTEP (Regional Transmission Expansion Plan) Reliability Projects Description and Cost Allocation[1] (Reliability Projects are Required Transmission Enhancements that are included in the RTEP to address one or more reliability violations or to address operational adequacy and performance issues) 1. Regional Facilities Required Transmission Enhancements included in the RTEP that are transmission facilities that: (a) are AC facilities that operate at or above 500 kV; (b) are double-circuit AC facilities that operate at or above 345 kV; (c) are AC or DC shunt reactive resources connected to a facility from (a) or (b); or (d) are DC facilities that meet the necessary PJM. Costs allocated using a hybrid cost allocation method – 50% allocated on a load-ratio share basis and 50% allocated using solution-based distribution factor (DFAX) method[2] 2. Necessary Lower Voltage Facilities Required Transmission Enhancements included in the RTEP that are lower voltage facilities that must be constructed or reinforced to support new Regional Facilities. Costs allocated using a hybrid cost allocation method – 50% allocated on a load-ratio share basis and 50% allocated using solution-based distribution factor (DFAX) method 3. Lower Voltage Facilities Required Transmission Enhancements that: (a) are not Regional Facilities; and (b) are not “Necessary Lower Voltage Facilities. 100% allocated using solution-based DFAX method 4. Local Planning (Form 715) Facilities Projects resulting from Annual Transmission Planning and Evaluation Report that any transmitting utility that operates integrated transmission facilities at or above 100 kV must file with the Commission. Form No. 715 requires submission of transmission planning reliability criteria that the transmission owner uses to assess and test the strength and limits of its transmission system. Allocated as Regional Facilities, Necessary Lower Voltage Facilities or Lower Voltage Facilities, depending into which category the Local Planning Facility fits.[3] In developing the RTEP, PJM identifies transmission projects to address different criteria, including PJM planning procedures, North American Electric Reliability Corporation (NERC) Reliability Standards, Regional Entity reliability principles and standards, and individual transmission owner Form No. 715 local planning criteria. [1] Per Schedule 12 of the PJM OATT [2] The Solution-Based DFAX method evaluates the projected relative use on the new Reliability Project by the load in each zone and withdrawals by merchant transmission facilities, and through this power flow analysis, identifies projected benefits for individual entities in relation to power flows. [3] Compliance filing pending at FERC in Docket No. ER15-1344.
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Dr. Paul DumaisCEO of Dumais Consulting with expertise in FERC regulatory matters, including transmission formula rates, reactive power and more. Archives
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