IEEE Power & Energy Magazine - July/August 2016 - 66

The competitive solicitation process is implemented
The process has been described as a sponsorship model in
that PJM gives developers the freedom to propose solutions through a series of proposal windows, conducted over the
for identified system needs, with the most cost-effective of course of a biennial planning cycle, that collectively address
these-as determined by PJM-designated to the proposer, a comprehensive analysis of reliability, market efficiency,
or sponsor, of that project. As a possible alternative to this and public policy needs with respect to the PJM grid (Figprocess, PJM could identify the best solution through stake- ure 2). Each unique need, for which a solution will be solicholder-vetted engineering analysis and then solicit proposals ited through one of these windows, is identified in a body of
for constructing that solution; in fact, other regional trans- analysis performed by PJM.
Market-efficiency and public-policy needs are evalumission organizations and independent system operators
have implemented some variation of this model. However, ated, along with long-term reliability criteria issues, over
PJM believed that opening up the process for developers to the course of a 24-month cycle. Due to the complexity
provide alternative solutions would result in more creative, of these drivers and the potential for interaction, a fourmonth proposal window follows a thorough vetting of
technically innovative, and cost-effective solutions.
PJM's Regional Transmission Expansion Plan (RTEP) need-analysis results.
Near-term (five years and sooner) reliability criteria viohas been driven primarily by reliability needs related to compliance with North American Electric Reliability Corpora- lations are evaluated annually to ensure continued complition (NERC), PJM, and local transmission-owner criteria. ance with NERC planning standards. To enable the resoluThe process also has considered market-efficiency drivers tion of these near-term issues by the end of a given year,
related to the relief of congestion in the energy market and proposal windows related to these violations are limited to
30-45 days.
price separation in the capacity market.
Regardless of length, the window process is the same. It
An important aspect of Order 1000 is the incorporation of state public policy into the planning process. Within begins with issuing a detailed problem statement to developPJM, there are 14 jurisdictions (13 states and the District of ers, along with the provisions of all needed power-flow models,
Columbia) with widely different approaches to energy policy related contingency files, under the protection of appropriate
goals involving renewables, energy efficiency, and demand CEII procedures.
Competition among proposals is based, first, on project
response. The goals can be satisfied through actions taken
either within a state or externally and can span multiple performance compared against the identified need, followed
years. This makes ascertaining the exact resource mix that by a range of considerations involving cost and constructawill satisfy each goal very uncertain. An analysis of impacts bility issues. The latter covers all aspects of each proposal's
associated with state public policy required the PJM plan- complexity, associated risks, and likelihood of successful
completion. Project sponsors are required to submit modning process to implement a scenario-planning approach.
PJM has worked with the states and other stakeholders eling details sufficient to allow analysis of the electrical
to identify scenarios for examination during each planning cycle.
Each scenario is scrutinized using
Baseline Reliability Upgrades
the same tools and procedures to
ensure compliance with NERC
Market Efficiency Upgrades
standards when performing reliState Public Policy Upgrades
ability analyses.
As needs are identified, PJM
Multidriver
uses the same competitive soliciUpgrades
tation process to identify potential
transmission solutions to facilitate
satisfying state policy goals. At
State Agreement
the end of the process, however,
Approach
each state must make its own decision with respect to the transmisReview and Evaluate Solution Options
sion required to satisfy its public
policy. This has proven somewhat
Suggest Solution Options
challenging because developing
Review of Analysis Results
proposals to satisfy divergent state
policy objectives-as well as each
Input to and Review of Assumptions and Scenarios for Analysis
state's perspective regarding how
best to satisfy its objectives-is
very difficult.
figure 2. The overall RTEP decision matrix.
july/august 2016

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