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Energy Managed

FAQs

Consider price, contract flexibility, supplier reputation, customer service, and alignment with your sustainability goals. Evaluate offers based on both short-term cost savings and long-term benefits.

A PPA is a contract between a buyer and an energy generator to purchase electricity at a fixed price for a set period. It is often used to secure renewable energy and hedge against future energy price volatility.

Fixed-rate contracts lock in energy prices for the contract duration, providing cost predictability. Variable-rate contracts fluctuate with market prices, offering potential savings but increased risk.

Energy price risk arises from market volatility in energy prices. It can be managed through hedging strategies, long-term contracts, or participation in demand response programs.

Businesses can hedge through fixed-price contracts, financial derivatives, energy efficiency upgrades, and diversifying energy sources, including renewables.

Demand response programs allow businesses to reduce energy consumption during peak periods, lowering costs and earning incentives. This helps manage price risks during times of high demand.

Companies can measure their carbon footprint by assessing emissions across Scope 1 (direct), Scope 2 (indirect from purchased energy), and Scope 3 (supply chain) using tools like the Greenhouse Gas Protocol.

Carbon offsets are credits purchased to compensate for emissions by funding projects that reduce or capture emissions elsewhere, such as reforestation or renewable energy initiatives.

Energy efficiency involves using technology to perform tasks with less energy (e.g., LED lighting). Energy conservation involves behavioral changes to reduce energy usage (e.g., turning off lights).

Businesses can implement sustainable energy practices by:

  • Investing in energy-efficient equipment.
  • Adopting renewable energy sources.
  • Conducting energy audits to identify inefficiencies.
  • Educating employees about conservation practices.
  • Setting sustainability goals and tracking progress.

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Energy Managed

Energy 101 Explained

A

Actual Load
A load serving entity's total load per electric distribution company zone, as determined through meter readings and electric distribution company load profiling methods.
Adjacent System or Adjacent Control Area
Any control area directly interconnected with another control area.
Agent
An entity appointed by a PJM member to do business in PJM on behalf of the member.
Aggregate
A group of more than one individual bus into a pricing node (pnode) that is considered as a whole in the Energy Market and other various systems and Markets within PJM.
Alternating Current
The movement of an electric charge that periodically reverses direction. This is compared to the flow of electric charge in direct current, which moves in only one direction. Electric power is delivered to homes and businesses through alternating current.
Analog Control
A signal which, with respect to time, varies continuously in proportion to the measured quantity.
Ancillary Services
Ancillary services help balance the transmission system as it moves electricity from generating sources to ultimate consumers. PJM operates several markets for ancillary services: the Synchronized Reserve Market, the Non-Synchronized Reserve Market, the Day-ahead Scheduling Reserve Market and the Regulation Market. There are also several other nonmarkets for ancillary services such as black start service and reactive service.
Annual Demand Resources
Can be called on an unlimited number of times any day of the delivery year, unless on an approved maintenance outage.
Area Control Error (ACE)
A measure of the imbalance between sources of power and uses of power within the PJM RTO. The ACE calculation uses the difference between scheduled and actual net interchange plus the PJM RTO frequency bias contribution.
Area Regulation Signal
A signal generated by the PJM Control Center and sent to the plants, stations and/or PJM members scheduled to provide regulation to change generation quickly to keep PJM’s area control error within allowable limits. It is used to control for small fluctuations in load.
Auction Revenue Rights (ARR)
Entitlements allocated annually to Firm Transmission Service Customers that entitle the holder to receive an allocation of the revenues from the Annual FTR Auction.
Automatic Generation Control (AGC)
Equipment that automatically adjusts a control area's generation to maintain its interchange schedule plus its share of frequency regulation.
Available Flowgate Capability
A measure of the flow capability remaining on a flowgate for further commercial activity over and above already committed uses. It is defined as total flowgate capability less existing transmission commitments, less a capacity benefit margin, less a transmission reliability margin, plus postbacks, and plus counterflows.
Available Transfer Capability (ATC)
The amount of energy above "base case" conditions that can be transferred reliably from one area to another over all transmission facilities without violating any pre- or post-contingency criteria for the facilities in the PJM control area under specified system conditions.

B

Balancing Authority
The responsible entity that integrates resource plans ahead of time, maintains demand and resource balance within a balancing authority area, and supports interconnection frequency in real time.
Balancing Authority Area
A balancing authority area is the collection of generation, transmission and loads within the metered boundaries of the balancing authority. The balancing authority maintains load-resource balance within this area.

C

Capacitor
An electronic component that stores an electric charge and releases it when required. A capacitor is a device for storing a large quantity of electric charge. When connected to the power system, capacitors will provide reactive power and thereby increase the voltage on the system.
Capacity Benefit Margin (CBM)
The portion of PJM’s emergency import capability that is deducted from total transfer capability to determine available transfer capability. CBM is reserved to import capacity assistance from external areas under emergency conditions. CBM allows a system to reduce its installed generating capacity below that which may have otherwise been required if transmission interconnections did not exist.
Capacity Emergency Transfer Limit (CETL)
The capability of the transmission system to support deliveries of electric energy to a given area experiencing a localized capacity emergency as determined in accordance with the PJM manuals.
Capacity Emergency Transfer Objective (CETO)
The amount of electric energy that a given area must be able to import in order to remain within a loss of load expectation of one event in 25 years when the area is experiencing a localized capacity emergency.
Capacity Factor
The ratio of the total energy generated by a generating unit for a specified period to the maximum possible energy it could have generated if operated at the maximum capacity rating for the same specified period, expressed as a percent.
Capacity Interconnection Rights
The rights to input generation as a generation capacity resource into the transmission system at the point of interconnection.
Capacity Performance Resource
A generating unit, demand resource, energy efficiency resource or aggregate resource that has met the qualification requirements to participate in the PJM capacity market.
Capacity Resource
A generating unit, demand resource, energy efficiency resource or aggregate resource that has obligated itself to deliver electricity or reduce load whenever PJM determines it is needed to meet power system emergencies.
Capacity Transfer Rights (CTR)
A method of allocating the economic value of transmission import capability that exists in a constrained load serving area to load serving entities.
Carrying Charges
Typically the cost of the time value of money associated with a project (i.e., allowance of funds used during construction). It also may include other short-term costs such as costs associated with storing a physical commodity, holding a financial instrument over a defined period of time, insurance or interest charges on borrowed funds.
Charging Current
The current that flows into a capacitor when a voltage is first applied.
Circuit
A system of conductors and its component parts through which an electrical current flows or is intended to flow.
Circuit Breaker
A circuit breaker is a switching device capable of starting, carrying and stopping electrical currents under normal circuit conditions. It also can start and carry currents for a specified time and stop currents under specified abnormal conditions such as a short circuit.
Coincidental Peaks
The unrestricted load of a zone, load-serving entity or end-use customer, coincident with one of the five highest loads used in the weather normalization of the PJM seasonal peak. Five coincidental peak values are used in the allocation of the PJM and zonal normalized peaks.
Combined Cycle
An electric generating technology in which electricity and process steam are produced from otherwise lost waste heat exiting from one or more combustion turbines. The exiting heat is routed to a conventional boiler or to a heat recovery steam generator for use by a conventional steam turbine in the production of electricity. This process increases the efficiency of the electric generating facility.
Combustion Turbine
A generating unit in which a combustion turbine engine is the prime mover for an electrical generator. It is typically used for peak-shaving operation due to quick response capability.
Congestion
A condition that arises on the transmission system when one or more restrictions prevents the economic dispatch of electric energy from serving load.
Congestion Cost
The price that represents the inability to use the least expensive generation to meet the electricity demand due to transmission limitations. Congestion Cost is one of the three components of Locational Marginal Pricing.
Consensus Based Issue Resolution (CBIR) Process
A group structured problem-solving process in which stakeholders develop, and agree to support a proposal in the best interest of the whole; used at all levels of the stakeholder process, including on complex, multiparty issues. The process allows various stakeholders to work together to develop a mutually acceptable solution.
Contingency
An event, usually involving the loss of one or more elements, that affects the power system at least momentarily.
Contract Path
A predetermined transmission service electrical path between contiguous transmission providers established for scheduling and commercial settlement purposes that represents the continuous flow of electrical energy between the parties to a transaction.
Control Area (Balancing Authority)
An electric power system or combination of electric power systems bounded by interconnection metering and telemetry to which a common generation control scheme is applied. PJM operates as one control area.
Control Zone
One or more transmission zones or multiple contiguous zones as defined in PJM manuals.
Converter
Any device for changing alternating current to direct current, or direct current to alternating current.
Coordinated Transaction Scheduling (CTS)
CTS transactions are interchange transactions between neighboring RTOs/ISOs designed to increase scheduling efficiencies across the seam using forward pricing information. Transactions leverage the differences in price projections, thereby resulting in price convergence and efficiency in flow direction.
Cost of New Entry
Averaged revenue required ($/MW-year) to build a reference combustion turbine in a specific area of PJM.
Cost-Based Offers
Offers that shall not exceed the variable cost of producing such energy or other service, as determined in accordance with the Cost Development Guidelines. Cost-based offers are used by PJM to schedule generation in cases in which structural market power is found to exist.
Critical Energy Infrastructure Information (CEII)
Specific engineering, vulnerability or detailed design information about proposed or existing critical infrastructure (physical or virtual) that relates details about the production, generation, transmission or distribution of energy; could be useful to a person planning an attack on critical infrastructure; is exempt from mandatory disclosure under the Freedom of Information Act; and gives strategic information beyond the location of the critical infrastructure.
Current
The movement of an electric charge.
Curtailment
A reduction in transmission service or generation as a result of system reliability conditions.
Customer Account
One or multiple accounts belonging to a single PJM member that allow the member to separate transactional activity and PJM business tool access. When a PJM member chooses to set up multiple accounts, these are often referred to as subaccounts. If a member creates separate accounts, PJM settlements calculations, invoicing and reporting would follow based on the activity in each account, though financial settlement is still accomplished through a single net payment to or from the member for each invoice period. Each account has a unique account name, account short name and account numerical identifier.

D

Daily Unforced Capacity Obligation
A load-serving entity's daily assignment in megawatts of the zonal unforced capacity obligation. It is calculated as the obligation peak load in the zone/area * the final zonal RPM scaling factor * the forecast pool requirement in a zone/area.
Day-Ahead Demand
The demand bids cleared in the PJM Day-Ahead Energy Market, inclusive of fixed and price sensitive demand, virtual bids and transactions.
Day-Ahead Energy Market
A day-ahead hourly forward market in which PJM market participants may submit offers to sell and bids to buy energy. The results of the Day-Ahead Energy Market are posted daily by 1:30 p.m. and are financially binding. The Day-Ahead Energy Market is based on the concept of locational marginal pricing and is cleared using least price security-constrained unit commitment and dispatch programs.
Day-Ahead Scheduling Reserve (DASR) Market
Voluntary, offer-based market for 30-minute (supplemental) reserves that can be provided by both generation and demand resources. It clears the day-ahead 30-minute reserve requirement, and is co-optimized with the Day-Ahead Energy Market.
DCS
Disturbance Control Standard (DCS) is the NERC DCS measures the ability of a control area to return Area Control Error either to zero or to its initial value following the loss of a large generating unit.
Dead (De-energized)
Free from any electrical connection to a voltage source and from an electric charge; not having a potential different from that of ground.
Decrement Bids
An hourly bid, expressed in megawatt-hours, to purchase energy in the PJM Day-Ahead Energy Market if the day-ahead locational marginal price is less than or equal to the specified bid price. This bid must specify hourly quantity, bid price and location (nodes where generation, load or interchange transactions are settled or at trading hubs).
Delivery Year
The 12 months beginning June 1 and extending through May 31 of the following year. Delivery year may also be referred to as planning year or planning period.
Demand (Load)
Demand is the usage or consumption of electricity on a power system. Demand is generally expressed in kilowatt-hours or megawatt-hours.
Demand Bid (Fixed)
An hourly bid, expressed in megawatt-hours, that may be submitted into the Day-Ahead Energy Market to purchase a certain amount of energy at day-ahead locational marginal price. Fixed demand bids must specify hourly quantity and location (transmission zone, aggregate or single bus).
Demand Bid (Price-Sensitive)
An hourly bid, expressed in megawatt-hours, that may be submitted into the Day-Ahead Energy Market to purchase a certain amount of energy at day-ahead locational marginal price only if the day-ahead LMP value is less than or equal to the specified bid price. Price-sensitive demand bids must specify hourly quantity, bid price and location (transmission zone, aggregate or single bus).
Demand Resource
A resource with a capacity commitment to reduce load when dispatched by PJM. A demand resource may be an existing or planned resource.
Demand Resource Factor (DR Factor)
Used to determine the reliability benefit of demand resource products and to assign an appropriate value to demand resource products. The DR factor is calculated by PJM and is approved and posted by February 1 prior to its use in the capacity auction for the delivery year.
Demand Resource Modification (DR Mods)
Transaction used by PJM to track an increase or decrease of the nominated value of the demand resource in a party’s resource portfolio in the Capacity Exchange tool.
Demand Response
Program that allows end-use customers to reduce their electricity usage during periods of higher power prices. In exchange, end-use (retail) customers are compensated through PJM members known as Curtailment Service Provider for decreasing their electricity use when requested by PJM.
Demand Side Management
Demand Response and energy efficiency measures used by end-use (retail) customers to modify or reduce load.
Demand Side Response
A change in electricity usage by a customer in response to price or an emergency event affecting grid reliability.
Direct Current (DC)
The movement of an electric charge from negative to positive that flows in only one direction. This is compared to an alternating current, which periodically reverses direction.
Disconnect Switch
A mechanical switching device used for changing the connections in a circuit or for isolating a circuit or equipment from a voltage source.
Dispatch Rate
The control signal, expressed in dollars per megawatt hour, calculated and transmitted continuously and dynamically to direct the output level of all generation resources dispatched by PJM in accordance with the offer data.
Dispatchable Generation
Generation that can follow dispatch instructions between economic minimum and economic maximum.
Distribution
Distribution is the final stage of delivering electricity to an end user. A distribution system steps down electricity from the higher voltage levels on the transmission system to deliver it directly to homes or businesses.
Distribution Factor
The term is generally applied to the percentage of power flowing on Element A that will be picked up (or backed down) on Element B as a result of an outage on Element A or a shift on generation.
Dynamic Reserves
Used during system restoration to ensure the system will remain stable following the loss of the largest energy contingency. Dynamic reserve consists of two components:
  • Reserve on generators available via generator governor action during a frequency disturbance
  • System load with under-frequency relay protection enabled
Dynamic Schedule
A telemetered value that is updated in real time and included in the interchange schedule in the area control error equation. It is commonly used for generation or load to or from another control area.
Dynamic Transfer
The provision of the real-time monitoring, telemetering, computer software, hardware, communications, engineering, energy accounting (including inadvertent interchange) and administration required to electronically move all or a portion of the real energy services associated with a generator or load out of one balancing authority area into another.

E

Eastern Interconnect Data Sharing Network (EIDSN)
A network for the sharing of operating reliability data, including both Supervisory Control and Data Acquisition (SCADA) and synchrophasor data, among appropriate entities to promote the reliable and efficient operation of the Eastern and Quebec Interconnections.
Economic Demand Response
Ability for end-use customers to participate in the wholesale energy and ancillary service markets through a Curtailment Service Provider when it is economic for them to participate in the market(s).
Economic Dispatch
The short-term determination of the optimal output of generation facilities, to meet the system load, at the lowest possible cost, subject to transmission and operational constraints.
Economic Generation
Units producing energy at an offer price less than, or equal to, LMP.
Economic Maximum Generation
The highest incremental MW output level a unit can achieve while following economic dispatch.
Economic Minimum Generation
The lowest MW output level a unit can achieve while following economic dispatch.
Electric Cooperative
A business jointly owned by its customers and operated as a pooled resource; engaged in the generation, transmission, and/or distribution of electric energy.
Electric Utility
An electric utility is an entity involved in the generation, transmission, or distribution of electricity for sale and for use by the general public. An electric utility can be investor-owned, cooperatively owned, or government-owned such as a municipal system.
Electrical Energy
The generation or use of electric power by a device over a period of time, expressed in kilowatt-hours (kWh), megawatt hours (MWh), or gigawatt hours (GWh).
Emergency Demand Response
A commitment to reduce load or consume electricity only up to a certain level when PJM needs assistance under expected emergency conditions (also called Load Management).
Emergency Maximum Generation Limit
The maximum output of energy a generating unit can produce and still maintain a stable level of operation.
Emergency Minimum Generation Limit
The least amount of energy a unit can produce and still maintain a stable level of operation.
End-Use (Retail) Customer
One of PJM's defined sectors for voting purposes.
Energy
Broadly defined, energy is the ability to do work. Electrical energy is produced by a generator, which converts other forms of energy into electrical energy that is then transmitted through the electric transmission and distribution systems. It is measured in kilowatt-hours and megawatt-hours.
Energy Imbalance Service
Used to supply energy for mismatch between scheduled delivery and actual loads that have occurred over an hour.
Energy Management System (EMS)
Provides real-time monitoring of operational information for all critical electrical equipment - information that is central to reliable operation of the bulk power system.
Energy Market
An energy market is a type of spot market in which energy is sold or purchased for immediate delivery. PJM's energy market functions at a wholesale level, operating daily to match supply and demand at optimal prices.
Energy Market Opportunity Cost
The value associated with an externally imposed environmental run-hour restriction on a generation unit. Examples include regulatory emission limits or operational permits restricting running hours or heat input.
Equivalent Demand Forced Outage Rate (EFORd)
A measure of the probability that a generating unit will not be available due to forced outages or forced deratings when there is a demand on the unit to generate.
Equivalent Demand Forced Outage Rate (EFORd-5)
An EFORd determined based on five years of outage data through Sept. 30 prior to the Delivery Year.
Equivalent Forced Outage Factor (EFOF)
The proportion of hours in a year that a unit is unavailable because of forced outages.
Equivalent Load
The sum of a market participant's net system requirements to serve its customer load in the PJM footprint, plus its net bilateral transactions.
Equivalent Planned Outage Factor (EPOF)
The proportion of hours in a year that a unit is unavailable because of planned outages.
Event Analysis
Utilization of a systematic approach to analyze an event which had negative consequences, with the goal of finding the causal factors of the event and developing recommendations to prevent a recurrence.
Exempt Wholesale Generator (EWG)
Independent power facilities generating electricity for sale in wholesale power markets that do not meet the size, efficiency, or ownership requirements for Qualifying Facility status. The Federal Energy Regulatory Commission determines EWG status.
Exports
External transactions where PJM is the point of receipt.
Extended Summer Demand Resources
Demand Resources which can be called on as many times as needed from 10 a.m. to 10 p.m. any day from June through October and the following May of that delivery year.
External Resource
A generation resource located outside the metered boundaries of the PJM RTO.
External Transaction
An energy transaction between two parties in which the path of the energy crosses a PJM RTO border.
Extra High Voltage (EHV)
Refers to 345 kV transmission lines and above on the PJM system.

F

Fault
A physical condition that results in the failure of a component or facility of the transmission system to transmit electrical power in the manner for which it was designed.
Federal Energy Regulatory Commission
FERC is an independent regulatory agency within the U.S. Department of Energy. FERC regulates the transmission and wholesale sales of electricity in interstate commerce. FERC also administers accounting and financial reporting regulations and conducts oversight of jurisdictional companies.
Final Zonal RPM Scaling Factors
Applied to a load-serving entity's daily obligation peak load for purposes of calculating its daily unforced capacity obligation.
Financial Transmission Right (FTR)
A financial instrument awarded to bidders in the FTR auctions that entitles the holder to a stream of revenues (or charges) based on the hourly day-ahead congestion price differences across the path.
Firm Point-to-Point Transmission Service
A transmission service intended to be available at all times to the maximum extent practicable, subject to emergencies, unexpected facility failures, or other events beyond the control of the facility owner or operator, or PJM.
First Contingency Basis
The operation of the bulk power electric supply system in a manner intended to protect against the consequences of a single facility failure or malfunction, ensuring that prior to a contingency:
  • Loading on all facilities remains within normal continuous ratings.
  • Voltages are maintained at predetermined normal levels.
Immediately following a single facility failure or malfunction:
  • Loading on all remaining facilities stays within emergency ratings.
  • System stability is maintained.
  • An acceptable voltage profile is preserved.
Fixed Resource Requirement
An alternative method for an eligible load-serving entity to meet its capacity obligations with its own resources rather than relying on PJM to procure capacity through RPM auctions.
Forced Transmission Outage
The immediate removal from service of a designated transmission facility due to an unplanned event.
Forecast Pool Requirement
The PJM installed reserve margin expressed in unforced capacity terms. The FPR is applied to a peak load forecast to establish the level of unforced capacity necessary for acceptable reliability.
Frequency Bias
A value, usually expressed in megawatts per 0.1 Hertz (MW/0.1 Hz), that approximates a balancing authority area's response to interconnection frequency errors.
Frequency Disturbance
A system frequency deviation from normal, caused by a generation/load imbalance.
Frequently Mitigated Unit (FMU)
A unit that was offer-capped for more than a defined proportion of its real-time run hours in the most recent 12-month period. FMU thresholds are 60%, 70%, and 80% of run hours. Such units are allowed a defined adder to their cost-based offers instead of the usual 10% adder.
FRR Capacity Plan
An FRR entity's advance commitment of capacity resources to satisfy its unforced capacity obligation and any specific locational or product-type resource requirements for a delivery year.
FTR Auction
A PJM-administered market for FTRs, allowing participants to submit offers to sell and bids to buy on-peak, off-peak, or 24-hour FTRs. FTRs awarded in these auctions can have terms ranging from one month to three years.
Fuel Cost
The cost of fuel used by a unit, expressed in $/MMBTU. This value, when multiplied by the unit's incremental heat rate (MMBTU/MWh), determines the incremental fuel cost ($/MWh).
Full Requirements Service
A term used by electric distribution companies, typically entailing a commitment to supply all of a customer's wholesale load requirements.

G

Generation
The process of producing electrical energy from other forms of energy (e.g., burning coal or using wind) or the amount of electrical energy produced, typically expressed in kilowatt-hours or megawatt-hours.
Generation Dispatcher
Member personnel who participate in the real-time operations of the PJM system by dispatching generation and performing other generation-related real-time duties as outlined in the PJM Generation Dispatcher Task List.
Generation Offer
Schedules of megawatts offered and their corresponding offer prices.
Generation Owner
One of PJM's defined sectors for voting purposes.
Generator
A machine that converts various forms of energy into electrical energy. Examples include coal-fired power plants, solar panels, wind turbines, and hydroelectric dams. PJM supports a diverse generation mix, including nuclear, natural gas, coal, and renewable sources.
Generator Operator
The entity responsible for operating generating facilities and supplying energy and interconnected operating services.
Geo-Magnetic Disturbance (GMD)
Events caused by solar activity that emit charged particles, disturbing Earth's magnetic field. These can generate unwanted currents in electrical transmission systems, potentially causing damage.
Gigawatt (GW)
A unit of power equal to one billion watts or 1,000 megawatts. One gigawatt can power between 800,000 and one million homes.
Gigawatt-hour (GWh)
A unit of measurement describing the amount of electricity produced or consumed. One gigawatt-hour equals one billion watt-hours or 1,000 megawatt-hours.
Grid
An interconnected network of generation, transmission, and distribution elements delivering electricity from suppliers to consumers.

H

Hertz (Hz)
The unit of frequency measurement in electricity systems. In U.S. electric markets, frequency is 60 Hz; in Europe, it is 50 Hz.
Hub
A grouping of multiple individual buses into a regional pricing node (pnode) to produce a stable price signal in the Energy Market and other PJM systems.
Human Performance
How people perform tasks to achieve goals and results. The focus is on reducing the frequency of human error and preventing errors from leading to negative events.

I

Immature Unit
A unit having between zero and five full calendar years of operating experience for reliability calculations.
Imports
Imports are external transactions where PJM is the point of delivery. Capacity imports from external units must be certified as deliverable using firm transmission and nonrecallable by any external party.
Inadvertent Interchange
The difference between net actual energy flow and net scheduled energy flow into or out of a control area.
Increment Bids (Increment Offers)
An hourly bid, expressed in megawatt-hours, to sell energy in the PJM Day-Ahead Energy Market if the Day-Ahead locational marginal price is less than or equal to the specified bid price. This bid must specify hourly quantity, bid price, and location (nodes where generation, load, or interchange transactions are settled or at trading hubs).
Incremental Auctions
First, second, and third incremental auctions allow for capacity suppliers to purchase replacement capacity and for PJM to adjust previously committed capacity levels due to reliability requirement increases or decreases.
Incremental Capacity Transfer Rights
A method of allocating the economic value of transmission import capability that exists into a constrained locational deliverability area to eligible transmission facility upgrades.
Incremental Cost
The incremental energy cost is the cost per megawatt-hour to produce all of the energy segments above the economic minimum level. It is calculated by summing the cost of each segment of energy in the unit’s incremental cost curve up to the generation level. This cost is a dollar per megawatt-hour rate.
Inframarginal Unit
A unit that is operating, with an accepted offer that is less than the clearing price.
Installed Capacity (ICAP)
A megawatt value based on the summer net dependable capability of a unit and within the capacity interconnection right limits of the bus to which it is connected.
Installed Reserve Margin (IRM)
A percentage value used to establish the level of installed capacity resources required to satisfy reliability criteria. The IRM is expressed as a percent of the forecasted 50/50 peak load.
Instantaneous Reserve Check
A PJM survey to obtain the current actual available megawatt reserves on the system. It is an activity performed and recorded daily, typically just prior to the morning and evening peaks, by dispatch in conjunction with generator owners.
Interconnection Reliability Operating Limit (IROL)
A system operating limit that, if violated, could lead to instability, uncontrolled separation, or cascading outages that adversely impact the reliability of the bulk electric system.
Inter-Control Center Protocol (ICCP)
An industry standard protocol used to communicate real-time data between control centers. PJM uses this to send and receive operations analog data measurements and digital measurements.
Interface
The specific set of transmission elements between two areas or between two areas constituting one or more electrical systems.
Internal Bilateral Transaction (IBT)
A transaction for the physical transfer of energy between two parties in which the path of the energy remains inside the PJM RTO borders. IBTs for energy are reported to PJM by participants using the PJM InSchedule tool.

J

Joint and Common
MISO and PJM Interconnection have developed complementing system operations and a robust, non-discriminatory wholesale electricity market to meet the needs of all customers and stakeholders within both regions. The market was developed through an open stakeholder process, designed to serve residents regardless of whether they reside in states with bundled or unbundled retail rates.
Joint-Owned Unit
A generating unit owned by two or more member systems whose output is dispatched as a pool resource, with each owner receiving a share of output for billing purposes on the percentage of ownership.

K

Kilowatt
A unit of power that is equal to 1,000 watts. The power output of many electric motors or heaters is typically expressed in kilowatts.
Kilowatt-hour
Monthly electricity bills for residential consumers show the kilowatt-hours that were used. One thousand kilowatt-hours equals one megawatt-hour.

L

Limited Demand Resources
Demand Resources which can be called on during weekdays (other than NERC holidays) from noon to 8 p.m. for at least 10 times from June through September.
Load (Demand)
The overall consumption of electricity. Load is generally expressed in kilowatt-hours or megawatt-hours.
Load Curtailment
Completely or partially reducing consumer electricity consumption.
Load Management
A resource with a capacity commitment to reduce load when dispatched by PJM. A demand response resource may be an existing or planned resource.
Load Management Subzone
A collection of zip codes within a transmission zone where any one location on the demand response registration is located within a zip code. Those within these locations should respond to the PJM dispatch signal, unless otherwise notified by PJM. Registrations based on residential and small commercial direct load control programs not having operational capability to respond to a transmission subzone dispatch signal. These do not need to respond to a transmission subzone dispatch signal, unless instructed by PJM requesting all direct load control related registrations.
Load Pick-up Factor
The amount of load (expressed in terms of percentage of generator rating) that a generator can pick up without incurring dynamic frequency decay below a level that will cause under-frequency load shed relays to operate or trip online generation. It is used during the system restoration process.
Load Serving Entity
Any entity (or the duly designated agent of such an entity), including a load aggregator or power marketer that: (a) serves end users within the PJM control area and (b) is granted the authority or has an obligation pursuant to state or local law, regulation or franchise to sell electric energy to end users located within the PJM control area.
Locational Constraints
Localized capacity import capability limitations within the PJM footprint that are caused by transmission facility limitations or voltage limitations that are identified for a delivery year in the PJM Regional Transmission Expansion Planning Process prior to the delivery year's capacity auction.
Locational Deliverability Area (LDA)
Sub-regions within PJM used in evaluating locational constraints. LDAs include transmission zones, sub-zones and combinations of zones.
Locational Marginal Price (LMP)
The marginal price for energy at the location where the energy is delivered or received. LMP is a pricing approach that addresses transmission system congestion and loss costs, as well as energy costs.
Locational Price Adder
A component of the resource clearing price that represents the additional price value of capacity resources located in a constrained locational deliverability area.
Locational Reliability Charge
Fee applied to each load-serving entity that serves load in PJM during the delivery year. It is equal to the LSE's daily unforced capacity obligation multiplied by the applicable final zonal capacity price.
Long-Term Firm Point-to-Point Transmission Service
Firm Point-to-Point Transmission Service with a term of one year or more.
Loss of Load Probability (LOLP)
The probability of system load exceeding available capacity over a defined period of time.
Losses
The power that is lost as dissipated heat when power flows in transmission lines and transformers.
Loss-of-Load expectation (LOLE)
Defines the adequacy of capacity for the entire PJM footprint based on load exceeding available capacity, on average, only once in 10 years.
Lost Opportunity Cost (LOC)
In general, the foregone revenues resulting from: 1) following PJM's dispatch instructions to provide some type of ancillary service or 2) reliability or transmission constraints. Lost opportunity costs are calculated for generating units participating in many PJM markets.

M

Manual Load Dump
The removal of electric load from a system by manually opening circuit breakers. Also known as load shedding.
Marginal Losses Cost
The price that represents the power lost when power moves across the transmission system. Marginal losses cost is one of the three components of locational marginal pricing.
Market-Clearing Price (MCP)
The price that is paid by all load and paid to all suppliers for the service received or provided.
Marketer
An entity that has the authority to take title to electrical power generated by itself or another entity and re-market that power at market-based price.
Markets Operations Center (MOC)
The equipment, facilities and personnel used by or on behalf of a market participant to communicate and coordinate with PJM in connection with transactions in the PJM Energy Market or the operation of the PJM RTO.
Mature Unit
A unit that has at least five years of operating experience for reliability calculations.
Megawatt (MW)
A unit of power equaling one million watts (1 MW = 1,000,000 watts) or one thousand kilowatts (1 MW = 1,000 kW). To put it in perspective, under nonsevere weather conditions, one MW could power roughly 800 to 1,000 average-sized American homes.
Megawatt-hour (MWh)
A unit of measurement used to describe the amount of electricity produced or consumed. It is equal to 1 million watt-hours or 1,000 kilowatt-hours.
Member
Any entity that has completed an application and satisfies the requirements of the PJM Operating Agreement to conduct business with PJM, including transmission owners, generating entities, load serving entities and marketers.
Metered
Refers to facilities or market entities that are within the PJM RTO.
Metered Value
A measured electrical quantity that may be observed through telemetering, supervisory control and data acquisition (SCADA) or other means.
Mileage
Absolute summation of movement requested by the regulation control signal a resource is following. It is calculated for the market hour and on a five-minute basis for each regulation control signal (i.e., RegA and RegD).
Minimum Offer Price Rule (MOPR)
A provision that imposes a minimum offer screening process to determine whether an offer from a new resource is competitive and prevents market participants from submitting uncompetitive, low new entry offers in capacity auctions to artificially depress auction clearing prices.
Monitoring Analytics
Established in 2008, created by spinning off the Market Monitoring Unit of PJM Interconnection. Monitoring Analytics continues to serve as the independent market monitor for PJM under a long-term contract. Monitoring Analytics also has extensive experience producing reports on a variety of market topics.
Monthly Energy Reconciliation
Billing for the difference between the hourly load responsibility initially reported to PJM and the actual hourly load. Hourly load responsibilities including load reconciliation quantities are reported by electric distribution companies using the PJM InSchedule tool.
Mothballed Unit
A mothballed unit is a generating unit placed on inactive status for a defined amount of time (e.g., one to two years). This unit would be deactivated but not retired.
Must-Run Generation
Self-scheduled to run by the member company. The unit can elect to follow or not follow PJM's economic signal.

N

Net Capability
The number of megawatts of electric power that can be delivered by an electric generating unit of a system under conditions and criteria specified by Manual 21. Net capabilities for all units are determined for both summer and winter operating conditions.
Net Energy & Ancillary Services (E&AS) Offset
A value representing historical energy revenue and Tariff-defined ancillary services revenue ($/MW-year) for a reference combustion turbine, which is used to offset the value of cost of new entry in order to determine the net value of the cost of new entry.
Net Interchange (energy)
Net interchange is gross import volume less gross export volume in MWh.
Net Tie Flow (Telemetered)
Summation of the flows on all ties between PJM and neighbors. Flows into PJM RTO are positive (+); out of PJM are negative (-).
Network Integration Transmission Service
Allows a transmission customer to integrate, plan, economically dispatch and regulate its network resources to serve its network load in a manner comparable to that in which the transmission provider utilizes its transmission system to serve its native load customers. Network integration transmission service also may be used by the transmission customer to deliver nonfirm energy purchases to its network load without additional charge.
Network Service Peak Load (NSPL)
A load's contribution to the zone's metered annual peak load.
New Entry Pricing
Allows planned generation resources that satisfy the requirement criteria to recover the amount of their initial base residual auction cost of entry-based offer for up to two additional consecutive delivery years.
Nominated DR Value
The installed capacity value of committed load reduction. The value cannot exceed the customer's peak load contribution in the summer or winter peak load during the winter.
Non-Coincident Peak
Non-coincident Peak is a transmission zone's, load-serving entity's or end-use customer's peak load during a stated period of time, whether or not it occurs at the same time as the overall system peak.
Non-economic Generation
Non-economic generation describes units producing energy at an offer price greater than the locational marginal price.
Non-Firm Point-to-Point Transmission Service
Point-to-point transmission service under the Tariff is reserved and scheduled on an as-available basis and is subject to curtailment or interruption. Non-firm point-to-point transmission service is available on a stand-alone basis for periods ranging from one hour to one month.
Non-PJM-Designated Transmission Facilities
Non-PJM-designated transmission facilities within the PJM RTO that are not designated for PJM operation. These are also referred to as local non-designated transmission facilities.
Non-retail Behind the Meter Generation
Behind the Meter Generation that is used by municipal electric systems, electric cooperatives, and electric distribution companies to serve load.
North American Electric Reliability Corporation
NERC operates as an electric reliability organization to improve the reliability and security of the bulk power system in North America. To achieve that, NERC develops and enforces reliability standards; monitors the bulk power system; assesses future adequacy; audits owners, operators and users for preparedness; and educates and trains industry personnel. As an Electric Reliability Organization, NERC is subject to audit by the U.S. Federal Energy Regulatory Commission and governmental authorities in Canada.

O

Obligation Peak Load
The obligation peak load is the summation of the peak load contributions (PLCs) of end-use customers that a load-serving entity is responsible to serve in a zone on an operating day.
Off Peak
Off-peak is a period of time when consumers typically use less electricity - normally on weekends, holidays, or times of the day when many businesses are not operating (typically from 11 p.m. to 7 a.m.).
Off-Cost
Out-of-merit dispatch operation that may necessitate expensive resources coming online or economic resources decreasing their output to relieve a transmission constraint.
Offer Data
Generator data including availability, operational limits, cost data, etc., specified for submission to the PJM Interchange Energy Market that is necessary to schedule and dispatch generation resources to meet the reliability and security of the Transmission System in the PJM RTO.
On-Peak
A period of time when consumers typically use more electricity - normally on weekdays, when many businesses are operating. PJM typically considers weekdays from 7 a.m. to 11 p.m. on-peak, except for holidays.
Operating Day
The daily 24-hour period beginning at midnight EPT for which transactions on the PJM Interchange Energy Market are scheduled.
Operational Flow Order (OFO)
A mechanism to inform the public of potential constraints of a natural gas pipeline.
Outage
"Outage" has multiple meanings in PJM. First, an outage is a short- or long-term loss of electric power to an area. It can also refer to planned or unplanned intervals of time when either transmission lines or power plants are temporarily brought out of service.
Outage Transfer Distribution Factor (OTDF)
The OTDF is the electric power transfer distribution factor with a specific system facility removed from service (outage). The OTDF applies only for the post-contingency configuration of the systems under study.

P

Parameter Limited Schedules (PLS)
Schedules containing pre-determined limits that could be imposed on the parameters in generation offers when certain operational circumstances exist. Cost-based offers are parameter limited. Price-based offers can be parameter limited or not.
Peak Demand
The highest electric requirement occurring in a given period of time. In PJM there are hourly, daily, monthly, seasonal, and yearly peaks.
Peak Load Contributions (PLCs)
An end-use customer's contribution to the zone's weather-normalized summer peak load, as determined by the zone's electric distribution company.
Peak Season
Those weeks containing the 24th through 36th Wednesdays of the calendar year. Each such week begins on a Monday and ends on the following Sunday, except for the week containing the 36th Wednesday, which ends on the following Friday.
Peak Season Maintenance
Planned outages and maintenance outages during the peak season.
Peak-Period Equivalent Forced Outage Rate Peak (EFORp)
A measure of the probability that a generating unit will not be available due to forced outages or forced deratings when there is a demand on the unit to generate during the defined critical peak hour periods.
Percentage Internal Resources Required
Determines the amount of resources located in a locational deliverability area that must be committed to a fixed resource retirement capacity plan.
Performance-Based Regulation (PBR)
Aligns compensation with the actual performance and benefits each resource provides to the power system. Resources are provided compensation for their accuracy, speed, and precision of response in providing regulation service to the system.
Phase Angle Regulator (PAR)
A power system transformer that has tap-changing capability and can change the phase angle across the transformer and thereby increase or decrease power flow.
Phasor Measurement Unit
Measures the electrical waves on an electricity grid to determine the health of the system. In power engineering, these are also commonly referred to as synchrophasors and are considered one of the most important measuring devices in the future of power systems.
PJM Control Center
The equipment, facilities and personnel used by PJM to coordinate and direct the operation of the PJM RTO and to administer the PJM Interchange Energy Market, including facilities and equipment used to communicate and coordinate with the market participants in connection with transactions in the PJM Interchange Energy Market or the operation of the PJM RTO.
PJM Electronic Reporting Compliance System (PERCS)
A PJM Tool used by Member TO for data and evidence submittals.
PJM Environmental Information Services, Inc. (PJM-EIS)
A wholly-owned subsidiary of PJM Connext that was formed to provide environmental and emissions attributes reporting and tracking services to its subscribers in support of renewable portfolio standards and other information disclosure requirements that may be implemented by government agencies. PJM-EIS owns and administers the Generation Attribute Tracking System.
PJM Interchange Energy Market
The regional competitive market administered by PJM for the purchase and sale of spot electric energy at wholesale in interstate commerce and related services established in the PJM Operating Agreement.
PJM Interchange Net Interchange (Spot Market Energy Settlements)
The difference between a participant's total energy resources (including both generation and purchased energy) and its total energy demand (including both load and energy sale obligations). Net interchange for this purpose is calculated separately for the Day-ahead Energy Market and the Real-Time Energy Market.
PJM Manuals
The instructions, rules, procedures and guidelines established by PJM for the operation, planning, and accounting requirements of the PJM RTO and PJM Interchange Energy Market.
PJM Region
The PJM Region represents the aggregate of all the PJM transmission zones.
PJM Reliability Facilities
Those facilities above 100kV which are monitored as part of the NERC BES set of facilities but are not included in the LMP calculations for congestion management.
PJM Reliability Only Facilities
Those facilities above 100 kV that are monitored as part of the NERC bulk electric system set of facilities but are not included in the locational marginal price calculations for congestion management.
PJM RTO
The control area recognized by NERC 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.
PJM Settlement, Inc.
A subsidiary of PJM Interconnection, LLC, that provides member settlement transaction activities for those participating in PJM's markets. The subsidiary acts as a counterparty to members' pool transactions and provides a clearly defined legal standing to collect unpaid balances of a member if the member should declare bankruptcy. All current PJM members are also members of PJM Settlement, Inc. PJM Settlement, Inc. is a Pennsylvania nonprofit corporation that has a service agreement with PJM to provide and retain services, including PJM staff support.
Planned Demand Resource
A demand resource that does not currently have the capability to provide a reduction in demand or to otherwise control load, but that is scheduled to be capable of providing a reduction or control on or before the start of the delivery year for which the resource is to be committed.
Planned Outage
The scheduled removal from service, in whole or in part, of a generating unit for inspection, maintenance or repair with approval of PJM.
Planned Transmission Outage
Any transmission outage scheduled for the performance of maintenance or repairs or the implementation of a system enhancement that is planned in advance for a pre-determined duration and that meets the notification requirements for such outages as specified by PJM.
Planning Period
The 12 months beginning June 1 and extending through May 31 of the following year. Planning period may also be referred to as planning year or delivery year.
Planning Year
The 12 months beginning June 1 and extending through May 31 of the following year. Planning year may also be referred to as planning period or delivery year.
PMAX
Maximum real power (WATTS) that can be achieved by a resource.
Point(s) of Delivery (POD)
Point(s) on the transmission provider's transmission system where capacity and energy transmitted by the transmission provider is made available to the receiving party.
Point(s) of Receipt (POR)
Point(s) of interconnection on the transmission provider's transmission system where capacity and energy are made available to the transmission provider by the delivering party.
Point-to-Point Transmission Service
Point-to-point transmission service is the reservation and transmission of capacity and energy on either a firm or non-firm basis from the point(s) or receipt to the point(s) of delivery.
Pool-Scheduled Resource
A resource that the seller has turned over to PJM for scheduling and control.
Pool-Wide Average EFORd
Average of the forced outage rates based on five years' history, weighted for unit capability and expected time in service, attributable to all units that are planned to be in service during the delivery year.
Posted Path
A posted path is any control area-to-control area interconnection; any path for which service is denied, curtailed or interrupted for more than 24 hours in the past 12 months; and any path for which a customer requests to have available transfer capability or total transfer capability posted (defined in FERC Order 889).
Power
The rate at which energy is transferred, used or transformed. It is measured in watts.
Power Transfer Distribution Factor
A measure of the responsiveness or change in electric loading on system facilities due to a change in electric power transfer from one area to another, expressed in percent (up to 100 percent) of the change in power transfer in the pre-contingency configuration of a system under study.
Price Node (Pnodes)
A single point or subset of points where a physical injection or withdrawal of energy is modeled and for which a locational marginal price (LMP) is calculated and used for financial settlements.
Price Responsive Demand (PRD)
End-use customer commitment to only consume a certain amount of electricity when energy prices are high. PRD commitment will reduce the amount of capacity needed to ensure the reliability of the customer because their load will be lower when energy prices are high.
Primary Reserve
Reserve capability that can be converted fully into energy within 10 minutes from the request of PJM. The primary reserve requirement is met with synchronized reserves and non-synchronized reserves.
Pseudo Tie
A time-varying energy transfer that is updated in real-time and included in the actual net interchange term (NIA) in the same manner as a tie line in the affected balancing authority's reporting area control error equation (or alternate control processes).

Q

QMAX
Maximum reactive power (VAR) that can be achieved by a resource.
Qualifying Transmission Upgrade (QTU)
A proposed enhancement or addition to the transmission system that may be offered into the base residual auction if such upgrade increases the capacity emergency transfer limit into a locational deliverability area by a megawatt quantity certified by PJM.

R

Ramp Rate
The rate, expressed in megawatts per minute, at which a generating unit can change output level.
Reactive Limits
The maximum power flow possible into or through some particular part of the system to maintain post contingency system bus voltage within operating criteria.
Reactive Power
The product of voltage and the out-of-phase component of alternating current. Reactive power, usually measured in units of volt-amperes reactive (VAR), is produced by capacitors and overexcited generators and absorbed by reactors and other inductive devices.
Reactive Service
Maintains transmission voltages within acceptable limits. Generators whose active energy output is altered at the request of PJM for the purpose of maintaining reactive reliability are credited hourly for lost opportunity costs if their output is reduced or suspended and credited in accordance with balancing operating reserve credit calculations if their output is increased. Generators operating as synchronous condensers for the purpose of maintaining reactive reliability at the request of PJM are credited for each hour (or partial hour) of condensing.
Real Power
The maximum power flow possible into or through some particular part of the system to maintain post contingency system bus voltage within operating criteria.
Real-Time Energy Market
A balancing market in which the clearing prices are calculated every five minutes based on the actual system operations security-constrained economic dispatch. The Real-Time Energy Market is based on the concept of locational marginal pricing and is settled based on actual five-minute quantity deviations from day-ahead scheduled quantities and on real-time prices calculated every five minutes.
Recallability
The right of a transmission provider to interrupt all or part of a transmission service for any reason, including economic, that is consistent with Federal Energy Regulatory Commission policy and the transmission provider’s transmission service tariffs or contract provisions.
Redispatch Cost
The cost to increase and/or decrease output from generation to manage transmission congestion.
RegA-Regulation Control Point
The regulation signal point that is used for traditional regulating resources with physical characteristics that limit ramp rate. This regulation signal takes into account the RTO frequency and tie error.
RegD-Dynamic Control Point
Used for regulating resources with no physical characteristics that limit ramp rate. This signal is derived from the same algorithms as the RegA; however, the main difference is the use of dynamic time constants that allow for faster cycling.
Regional Transmission Expansion Planning (RTEP) Process
PJM's comprehensive annual process that examines the three interrelated components of electric power system reliability: load, generation and transmission. The RTEP process employs a range of planning study tools and methodologies to analyze and assess each component to ensure that reliability remains firm. The RTEP process is designed to meet established reliability criteria, keep markets robust and competitive, and ensure stable operations.
Regulation
The capability of a specific resource with appropriate telecommunications, control and response capability to increase or decrease its output in response to a regulating control signal to control for frequency deviations.
Regulation Market Capability Clearing Price (RMCCP)
The five-minute jointly co-optimized regulation price to reserve MWs. It is set by finding the difference between the regulation market clearing price and the regulation market performance clearing price.
Regulation Market Clearing Price (RMCP)
The price of supplying the last megawatt of regulation needed to satisfy the regulation requirement. The RMCP is calculated every five minutes through joint co-optimization of regulation, synchronized reserve, non-synchronized reserve and energy to achieve the lowest cost alternative. The RMCP is used with the regulation market performance clearing price to calculate the regulation market capability clearing price.
Regulation Market Performance Clearing Price (RMPCP)
The five-minute jointly co-optimized regulation price to move megawatts. It is calculated as the highest adjusted performance offer from the set of cleared resources. In settlements, five-minute regulation market performance clearing prices are used in the calculation of regulation performance credits.
Regulation Signals
Signals generated by PJM control center and sent to controllable entities to automatically adjust generation or consumption quickly to keep PJM’s area control error within allowable limits. PJM employs two types of regulation signals. The RegA, or traditional, signal is typically followed by regulating resources with physical characteristics that limit ramp rate. The RegD, or dynamic, regulation signal is faster than RegA and is typically followed by regulating resources with no physical characteristics that limit ramp rate.
Reliability Must Run (RMR)
Refers to a generating unit that is slated to be retired by its owners but is needed to be available for reasons of reliability. Typically, it is requested to remain operational beyond its proposed retirement date until transmission upgrades are completed.
Reliability Pricing Model (RPM)
PJM's capacity market design that includes a series of auctions to satisfy the reliability requirements of the region PJM serves for a delivery year.
Reliability Principles and Standards
The principles and standards established by NERC or ReliabilityFirst ensure the reliability of the bulk power system.
Reliability Requirement
The reliability requirement is a target level of capacity resources (in MWs) required to meet reliability principles and standards.
Renewable Portfolio Standard
A regulation or law that requires a defined amount of energy to be delivered from renewable resources. Many states within the PJM service area have renewable portfolio standards.
Reserved Transmission Capability
The maximum amount of capacity and energy reserved or agreed to be transmitted for the transmission customer over the PJM RTO transmission service facilities between the point(s) of receipt and the point(s) of delivery. Reserved transmission capability shall be expressed in terms of whole megawatts on a 60-minute interval (commencing on the clock hour) basis.
Reserves
The megawatts (MW) or megavolt-amperes reactive (MVAR) available to quickly replenish the loss of real or reactive power due to the loss of an energy source or transmission facility.
Resource Clearing Price
A locational and product-specific clearing price paid to a resource that clears in an RPM auction.
Resource Specific Benefits Factor
Each resource providing RegD is assigned a unique benefits factor that translates a fast-moving resource's megawatts into traditional (RegA) megawatts or effective megawatts. The benefits factor equal to 1 means the RegD resource is equivalent to a traditional (RegA) resource
Retail Customer
The end use customer that purchases electricity from a state licensed distribution company or a state licensed alternate supplier at a retail rate.
Retail Load Responsibility
A type of energy transaction in the PJM InSchedule tool between a load-serving entity serving retail load and the electric distribution company for the applicable service territory. The RLR transaction is used to report the hourly real-time megawatt-hours of load responsibility for the load-serving entities and includes losses.
Retail Market
End-use customers purchase electricity through a retail market. In some retail markets, there may be only one choice of an electric distribution company in an area through which customers can purchase electricity, while other markets may have multiple choices.
Retail System User
An end-user of electric energy within the PJM RTO.
Right of First Refusal (ROFR)
Incumbent transmission owners have the right to construct, own and propose cost recovery for any new transmission project that is located within their service territory and approved for inclusion in a transmission plan developed through FERC guidelines. FERC has stated in Order 1000 that it is unjust and unreasonable to grant incumbent transmission providers a federal right of first refusal with respect to certain transmission projects because doing so may result in the failure to consider more efficient or cost-effective solutions to regional needs and, in turn, result in the inclusion of higher-cost solutions in the regional plan.
RTO Unforced Capacity Obligation
Represents the net amount of unforced capacity megawatts cleared in delivery year capacity market auctions on behalf of load-serving entities.
RTO Weather Normalized Summer Peak
The sum of the Zonal Weather Normalized Summer Coincident Peaks.

S

Secondary Reserve
Reserve capability that can be converted fully into energy within a 10- to 30-minute interval following the request of PJM. Equipment providing secondary reserve need not be electrically synchronized to the power system.
Secondary Transmission Provider
Any customer who offers to sell transmission capacity it has purchased.
Sector
One of five divisions of the PJM Members Committee, which are: the Generation Owners Sector, Other Suppliers Sector, Transmission Owners Sector, Electric Distributors Sector and End-Use Customers Sector.
Self-Scheduled Resource
A generating resource that is turned on by the operating company and committed into the energy market by the operating company. Self-scheduled resources are also known as "running for company."
Shadow Price
The incremental reduction in congestion cost achieved by relieving a constraint by 1 MW. The shadow price multiplied by the flow (in megawatts) on the constrained facility during each hour equals the hourly gross congestion cost for the constraint.
Shared Reserves
An agreement between PJM and another balancing authority to assist the opposite pool in faster recovery from a sudden loss of generation or energy purchase than it would otherwise have achieved without outside assistance.
Short-Term Firm Point-to-Point Transmission Service
Firm Point-To-Point Transmission Service under Part II of the PJM RTO Open Access Tariff with a term of less than one year.
Sink
The balancing authority in which the load is located for an interchange transaction. (This will also be a receiving balancing authority for the resulting interchange schedule.)
Source
The balancing authority in which the generation is located for an interchange transaction. (This will also be a sending balancing authority for the resulting interchange schedule.)
Spot Market Energy
Energy bought or sold by market participants through the PJM Interchange Energy Market at locational marginal prices.
Static Var Compensator (SVC)
A static Var compensator is an electrical device for providing fast-acting, reactive power compensation on high voltage electricity transmission networks.
Substation
Changes energy from one amount of voltage to another, often in the direction of a higher voltage to a lower voltage. A high-voltage transmission line will connect to a substation to move electricity into a low-voltage distribution system on its way to consumers.
Summer Peaking Zone
A system whose maximum one-hour load during the period of June through September exceeds its winter peak.
Surge
A transient variation of current, voltage or power flow in an electric current.
Synchronized Reserve Market
Provides PJM participants with a market-based system for the purchase and sale of the Synchronized Reserve ancillary service. Resources must have capability that can be converted fully into energy within 10 minutes or customer load that can be removed from the system within 10 minutes of the request from the PJM dispatcher, and must be provided by equipment electrically synchronized to the system. Resource-specific offers are optimized in Ancillary Service Optimizer to determine hourly commitments of inflexible Synchronized Reserves. In real time, the remaining RTO reserve needs are optimized simultaneously with energy and regulation to calculate a clearing price for Synchronized Reserve every five minutes based on current system conditions.
Synchronous Condenser
A synchronous machine that operates without mechanical load to supply or absorb reactive power for voltage control purposes.
System Operating Limit (SOL)
The value (such as MW, MVAR, amperes, frequency or volts) that satisfies the most limiting of the prescribed operating criteria for a specified system configuration to ensure operation within acceptable reliability criteria. System Operating Limits are based upon certain operating criteria.

T

Telemetering
The process by which measurable electrical quantities from substations and generating stations are instantaneously transmitted using telecommunication techniques.
Tie Line
A circuit connecting two or more control areas or systems of an electric system.
Transformer
An electromagnetic device for transforming energy from one circuit to another of different voltage levels as in an alternating current system.
Transmission Constraints
Limitations on a transmission line or element that may be reached during normal or contingency system operations.
Transmission Facilities
Facilities within the PJM Region that have been approved by, or meet the definition of transmission facilities established by, FERC; or have been demonstrated to the satisfaction of the Office of Interconnection to be integrated with the PJM Region transmission system and integrated into the planning and operation of the PJM Region to serve all of the power and transmission customers within the PJM Region.
Transmission Loading Relief
A NERC procedure developed for the Eastern Interconnection to mitigate overloads on the transmission system by allowing reliability coordinators to request the curtailment of transactions that are causing parallel flows through their system.
Transmission Owner
A member that owns or leases, with rights equivalent to ownership, transmission facilities. Taking transmission service is not sufficient to qualify a member as a transmission owner.
Transmission Reliability Margin
A reliability margin is applied to a flowgate in the available flowgate capability calculation to account for the inherent uncertainty of system conditions, including the uncertainty of load forecasts, sources of loop flow and variations in generation dispatch.
Transmission Service Request
A request made by a participant for transmission service over PJM designated facilities. Typically the request is for either short-term or long-term service, over a specific path for a specific megawatt amount. PJM evaluates each request and determines if it can be accommodated, responding back to the requesting parting in a time frame outlined in the PJM transmission tariff.
Transmission System
The facilities owned, controlled or operated by the transmission provider within the PJM RTO that are used to provide transmission service.

U

Unaccounted for Capacity
The capacity reported on the load and capacity printout, minus the calculated operating capacity, minus scheduled capacity not available in 30 minutes. This is the amount of capacity that is reported available at the time of the instantaneous reserve check (IRC), but cannot be accounted for based on system conditions at the time of the IRC.
Unavailable Capability
Generation that is out of service due to forced, maintenance or planned outages.
Unconstrained Posted Path
Any posted path not determined to be a constrained posted path (defined in FERC Order 889).
Unforced Capacity (UCAP)
The megawatt value of a capacity resource in the PJM capacity market. For generating units, the unforced capacity value is equal to installed capacity of the unit multiplied by (1 – unit's EFORd). For demand resources and energy efficiency resources, the unforced capacity value is equal to demand reduction multiplied by the forecast pool requirement.
Up-To-Congestion (UTC) Transaction
A bid in the Day-ahead Energy Market to purchase congestion and losses between two points. The UTC bid consists of a specified source and sink location, megawatt quantity and a “bid spread” that identifies how much the market participant is willing to pay for a congestion and loss position between the source and the sink.

V

Variable Resource Requirement Curve
An administratively determined demand curve (defining prices for various levels of resource procurement) for the PJM Region or a locational deliverability area that is used in a capacity market auction.
Voltage
If the flow of electricity through a wire were like the flow of water through a pipe, voltage would be akin to the difference in water pressure between two points in the pipeline. It is measured in volts.
Voltage Reduction
Lowering voltage on the distribution system to reduce customer demand and increase megawatt reserves.

W

Watt
A unit of power that measures the rate at which energy is transferred or converted. A 100-watt light bulb, for example, is rated to consume 100 watts of power when turned on.
Weekday Period
The period of the week that begins at 0800 on Monday and ends at 2200 on Friday.
Weekend Period
The period of the week that begins at 2200 on Friday and ends at 0800 on Monday.
Wheeling
The contracted use of electrical facilities of one or more entities to transmit electricity for another entity.
Wheel-through
An energy transaction – flowing through a transmission grid – whose point of receipt and point of delivery are outside of that transmission grid.
Wholesale Customer
An entity that purchases electric energy for resale, or uses transmission service for such transactions, within the PJM RTO.
Wholesale Load Responsibility
A type of energy transaction in the PJM InSchedule tool between a load-serving entity serving wholesale load and the electric distribution company for the applicable service territory. The WLR transaction is used to report the hourly real-time megawatt-hours of load responsibility for the load-serving entity and includes losses.
Wholesale Market
Like other commodities, electricity is bought and resold multiple times before being delivered to the end-use customer. These transactions form the wholesale electricity market. Suppliers that sell electricity to retail consumers or other large-scale consumers purchase energy through the wholesale market. PJM operates a competitive wholesale market for electricity in the region PJM serves.
Winter Peak Period
The period from December 1 through February 29 of the planning period.
Winter Peaking Zone
A system whose reduced winter peak is greater than its maximum one-hour load during the period of June through September.

Z

Zonal Capacity Price
The price charged to a load-serving entity for their unforced capacity obligation in a zone based on the results of capacity market auctions for the delivery year.
Zonal CTR Credit Rate
The rate applicable to zonal CTRs allocated to load-serving entities in the zone, expressed as dollars per megawatt-hour of unforced capacity obligation.
Zonal CTR Settlement Rate
The rate applicable to zonal CTRs allocated to load-serving entities in the zone, expressed as dollars per megawatt of CTRs.
Zonal Unforced Capacity Obligation
The zonal unforced capacity obligation is a zone's assignment in megawatts of the RTO unforced capacity obligation for the delivery year.
Zone
A transmission owner's area within the PJM Region.