IEEE Power & Energy Magazine - July/August 2016 - 65
developers to identify and cost out a solution for consideration by PJM.
Over the last two years, as many different projects have
gone through the process, PJM has accumulated a significant
amount of information. In late 2014, PJM began a lessonslearned discussion with its stakeholders to capture feedback on the process and suggestions for its improvement.
In this article, we discuss PJM's experiences implementing
the Order 1000 process and some ways being considered to
improve the process moving forward so as to better achieve
the goals set forth by the FERC.
About PJM
PJM Interconnection is a regional transmission organization
that coordinates the movement of wholesale electricity in all
or parts of Delaware, Illinois, Indiana, Kentucky, Maryland,
Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of
Columbia. Acting as a neutral, independent party, PJM operates a competitive wholesale electricity market and manages
the high-voltage electricity grid to ensure reliability for more
than 61 million people.
PJM's long-term regional planning process provides a
broad, interstate perspective that identifies the most effective and cost-efficient improvements to the grid for ensuring
reliability and economic benefits on a system-wide basis.
Background on FERC Order 1000
In the introduction to its Order 1000 Final Rule (item 7), the
FERC summarized its objective as follows:
The reforms herein are intended to improve
transmission planning processes and cost allocation
mechanisms under the pro forma Open Access Transmission Tariff (OATT) to ensure that the rates, terms
and conditions of service provided by public utility
transmission providers are just and reasonable and not
unduly discriminatory or preferential.
In issuing Order 1000, the FERC sought to build upon its
previous Order 890, which required open planning processes to facilitate the identification and construction of
needed transmission facilities. With Order 1000, the FERC
added the requirement that planning processes allow for
transmission projects to be "awarded" to an entity other than
the incumbent utility.
By opening the process to more participants, the FERC
expects that the competitive process necessarily will result
in a more cost-effective solution and that the presence of
nonincumbent developers in the process will ensure selection of the best solution.
PJM's Implementation of Order 1000
In its response to Order 1000 and subsequent compliance
filings, PJM outlined the process illustrated in Figure 1.
RTEP Proposal Window Evaluation Process
PJM Company
Evaluation
Window Participants
Prepare and Submit
Project Packages
Variable Proposal
Window ~30 to ~120 Days
Designated
Entity Selection
PJM
Recommendation
to Board
PJM
Constructability
Evaluation
Project
Selection
PJM
Analytical
Evaluation
Project(s)
Presented and
Reviewed
at the
Transmission
Expansion
Advisory
Committee
Analytical evaluation assesses proposals in terms of
performance with respect to the specific, identified needs.
* Reliability analyses evaluate transient stability, voltage, thermal
and short circuit performance, per established NERC reliability
planning criteria. Similarly, analyses are performed for operational
performance issues encountered in real time.
* Market efficiency analyses evaluate a proposed project's ability
to relieve transmission congestion consistent with established
benefit-to-cost metrics.
* Public policy analyses evaluate a proposal's performance with
respect to its ability to satisfy public policy objectives and
requirements, such as the delivery of renewable energy to
customer load within a given state.
figure 1. PJM's Regional Transmission Expansion Plan proposal window evaluation process.
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july/august 2016
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