International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC Power Grid Operations Advances through Technology Phillip G. Harris President and CEO PJM Interconnection International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC California 45,597 ERCOT 60,279 Midwest ISO 131,434 PJM RTO 134, 017 New England 26,972 ISOs/RTOs New York 32,075 SPP 45,248 International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC PJM as Part of the Eastern Interconnection KEY STATISTICS PJM member companies 350+ millions of people served 51 peak load in megawatts 135,000 MWs of generating capacity 165,738 miles of transmission lines 56,070 GWh of annual energy 700,000 generation sources 1,082 square miles of territory164,260 area served 13 states + DC International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC Advanced Technology Massive data quantities needed for reliability Significant technology investments Few entities are large enough to invest in best practices technology. RTOs are designing and driving advances in software and hardware for reliable operation International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC Public Information Markets Prices Available transfer capability Transmission limits & flows Forecasts Data trends PJM transforms data to information in real time Data to Information Traditional Processes Models Forecasts Actual Markets Reports Investigative Data Silos Agencies Customers Generators Transmission Owners Utilities Environmental Regulatory 6,000,000,000,000 Items 3,000 Items Key User- Selected Data Aggregated prices Specific prices Available transfer capability Transmission limits Forecasts Loads 10 Items PJM systems process International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC Advanced Technology Applications Real-time Contingency analysis Generation dispatch Real-time voltage Analysis Advanced Unit Commitment Visualization Technology International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC AC 2 Objectives PJM is working with key vendors to leverage leading developments in the next generation of systems to address business continuity and increase productivity requirements cost effectively. Development of a common platform will permit economies of scale and allow interoperability between multi-vendor applications. International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC AC 2 Technology Architecture Future State eSuite MMS Enterprise Service Bus Primitive Historian UCS Auto. Gen Control Generator DB Network Apps Comm System SCADA Fin Trans Rights DMT Energy Management System (EMS) MMS Security Layer eDART eSched eMeter EES GADS OASIS eCAP UDS Market System SPREGO Portal Settlements Benefits Path to the future (Evergreen) Security built-in Interoperability Lower Total Cost of Ownership International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC AC 2 Business Principles Minimalist Architecture Principle: Make decisions with alacrity It Must Be Done Principle: Include decisions that can be enforced. Overall Architecture Principles: Enhance Individual Employee Productivity Provide flexible tools that individuals can use to perform their roles more effectively Encourage Collaboration and Partnerships Form alliances with other areas, vendors, RTO's, etc Manage Technology as an Investment View technology as an investment, rather than an annual expense, that will yield a return in exchange for up-front expenditures and assumption of risk Focus on Outcomes Measure and assess people, projects and teams by what they accomplish Strive for Simplification Develop tools that can be flexibly applied to reduce the complexity of PJM's business processes. International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC PJM Load Response Programs EMERGENCY ECONOMIC Designed to provide an incentive to customers or curtailment service providers to reduce consumption when PJM LMP prices are high Two options: Day-Ahead Option Real-Time Option Designed to provide a method by which end- use customers may be compensated by PJM for voluntarily reducing load during an emergency event. International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC PJM Load Response Programs PJM Programs 2003 MWs Registered 2004 MWs Registered 2005 MWs Registered PJM Economic Load Response Program 7241,8111,940 PJM Emergency Load Response Program 6591,479 PJM Active Load Management Resources (all zones) 1,2071,806 PJM Active Load Management Resources included in the Load Response Program Total PJM Programs2,1454,7794,908 International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC PJM Provides Current Pricing Information eData Participants use eData for real-time pricing and operational information International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC LMP Contours and 3-D Visualizations LMP Value ($) International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC PJM Environmental Information Service, Inc. PJM EIS was formed to provide environmental tracking services to its subscribers in support of portfolio standard and other information disclosure requirements. Users of the GATS enter into a user agreement with PJM EIS for access to use the system. The user agreement defines the: 1.user fee structure, 2.terms of use, and 3.business rules. International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC PJM formed PJM-EIS as an equitable way to implement the Generator Attribute Tracking System. PJM EIS is capitalized independently of PJM, L.L.C. GATS cost borne solely by GATS users FERC has advised that the GATS is non- jurisdictional. International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC PJM Environmental Information Service, Inc. PJM Environmental Information Services, Inc. (PJM EIS) owns and administers the Generation Attribute Tracking System (GATS). PJM EIS is a wholly-owned subsidiary of PJM Technologies, Inc. International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC The future requires a higher sophistication in acknowledging and dealing with differences Peter F. Drucker International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC PJM Challenges International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC PJM The Future Challenges & Opportunities Advanced Technology Standards Visualization Changes to Workforce Dynamic International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC Standardized EMS Platform & Open Architectures Common information architecture Common core system functions Common look and feel to system Interchangeable plug and play applications International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC Wide Area Overview Data collection, monitoring, and analyzing interconnection-wide operations Data and informational exchange with neighbors Crisis-response status and visualization techniques International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC Challenges of Workforce Demographics The fastest growing segment of the U.S. workforce is the 50 and older age group. The number of Americans trained in critical skill fields continues to drop even as college graduation rates increase. More than 34 percent of workers in aerospace, energy/utility, and high technology industries are 45 years and older. PJMs Average age = 42. Approximately 40 percent of the workforce in the gas and electric industry will be eligible to retire over the next four years. PJM = 85 people (15%). International Meeting of Very Large Power Grid Operators 2005 Beijing, PRC