A System Operator s Resilience Wish List Tom Bowe

• System Operations in 90 Seconds • Who is PJM? • How has

Grid Operations Fundamental Principle - BALANCE Load to Gen Trans Limits BALANCE Load =

Summer Load Curve www. pjm. com 4 PJM© 2014

PJM as Part of the Eastern Interconnection • 27% of generation in Eastern Interconnection • 28% of load in Eastern Interconnection • 20% of transmission assets in Eastern Interconnection www. pjm. com 5 KEY STATISTICS PJM member companies 900+ millions of people served 61 peak load in megawatts 165, 492 MWs of generating capacity 183, 604 miles of transmission lines 62, 556 2013 GWh of annual energy 791, 089 Eastern generation sources Interconnection 1, 376 square miles of territory Largest 243, 417 area served 13 states + Synchronized 4/1/2014 As of DC externally facing tie lines Machine PJM© 2014 191

The Distribution of Power www. pjm. com 6 PJM© 2014

PJM Backbone Transmission www. pjm. com 7 PJM© 2014

The Grid vs. Nature www. pjm. com 8 PJM© 2014

10/29/12 (initial 12 -24 hrs) - Outage Map www. pjm. com 11 PJM© 2014

January 2014 Low (& Wind Chill) vs Historic Temperatures Unseasonably Cold Weather in January Region Week of Jan 6 Week of Jan 20 Week of Jan 27 Avg Jan Low Temp All-Time Record Low Philadelp hia 4° (1/7) -18° WC 4° (1/22) 10° (1/30) -17° WC -3° WC 25. 5° -7° (1982 & 84) -16° & -33° WC Richmond 10° (1/7) -8° WC 7° (1/23) -2° WC 28. 4° -12° (1940) WC N/A 4° (1/30) 4° WC -11° All temperatures are in Fahrenheit and WC denotes Wind Chill -16° (1/6) -6° (1/24) Chicago www. pjm. com -41° WC -24° WC (1/28) -30° WC 12 16. 3° -27° (1985) -57° WC PJM© 2014

Slide 6: PJM RTO Highest Historic Winter Demands www. pjm. com 13 PJM© 2014

Slide 2: January 7 – Peak Load vs. Typical Load www. pjm. com 14

2014 Morning Peak Outaged ICAP% www. pjm. com 15 PJM© 2014

Detailed Outage Causes www. pjm. com 16 PJM© 2014

January 2014 Total Balancing Operating Reserve Credits January 2014 www. pjm. com 17 PJM©

Resilience Definition www. pjm. com 18 18 PJM© 2014

Electricity Critical Infrastructure NERC and Industry Actions Strategic direction, coordinated action Vision 19 www. pjm. com Goals Risk Priorities 19 Scenariobased Approach Coordinated Action Plan PJM© 2014

Some “Wishes” Linked to Identified Priorities • The Caveat – One individual’s take on

Priority 1 – Manage the Risk • Risk Management – A process that examines and evaluates policies, plans, and actions for reducing the impact of a hazard or hazards on people, property and the environment. 1. Managing expectations – Potential New Normal 2. Resilience for All Hazards 3. Drill/Train for Creativity in Crisis www. pjm. com 21 PJM© 2014

Priority 2 – Cost Effective Strengthening 1. Identify the greatest Interdependencies of the Critical Infrastructures – Communications – Fuel Delivery 2. Develop & Implement the solutions which strengthen these points for the greatest operational ROI www. pjm. com 22 PJM© 2014

Priority 3: Increase System Flexibility and Robustness • Additional transmission lines increase power flow capacity 1. How do you Justify? To a Commission? To a Community? 2. Reliability Criteria but what of Resilience Criteria? • Micro Grids 1. Fully understanding the impact of not being interconnected 2. Decision Criteria Developed & People Drilled • Market Solutions and Coordination www. pjm. com 23 PJM© 2014

Priority 4: Increase Visualization and Situational Awareness • SMART Meters and outage notification capability coupled with automated feeder switching, • Synchrophasor technology 1. Ensure Reality = Reputation 2. Reduce State Estimation 3. Parallel Data Inputs & Solutions www. pjm. com 24 PJM© 2014

Priority 5: Deploy Advanced Control Capabilities – blackouts illustrate that real-time monitoring tools were inadequate to alert operators to rapidly changing system conditions and contingencies – Providing operators with new tools that enhance visibility and control of transmission and generation facilities could help them manage the range of uncertainty caused by variable clean electricity generation and smart load, thus enhancing the understanding of grid operations 1. Solutions to Harden Model Stability – with imperfect and incomplete data www. pjm. com 25 PJM© 2014

• Priority 6: Availability of Critical Components and Software Systems • Transformers Study

A System Operator’s Resilience “Wishes” - Summary 1. Work to develop repeatable Resilience ROI quantification methodologies. VALUE = X 2. Integrate Resilience Solutions to address - All Hazards frameworks (Weather to Terrorists) for far greater ROI. VALUE = 2 X 3. Coordinate Resilience Solutions across the highly interdependent critical infrastructures VALUE = 2 X Squared? www. pjm. com 27 PJM© 2014