Residual ARRs Clause Samples

Residual ARRs. If ARR allocations are reduced as the result of a modeled transmission outage and the transmission outage ends during the relevant planning year, the result is that residual ARRs may be available. These residual ARRs are automatically assigned to eligible participants the month before the effective date. Residual ARRs are only available on paths prorated in Stage 1 of the annual ARR allocation, are only effective for single, whole months and cannot be self scheduled. Residual ARR clearing prices are based on monthly FTR auction clearing prices. Residual ARRs with negative target allocations are not allocated to participants. Instead they are removed and the model is rerun until a minimum of negative target allocation residual ARRs are found. In the 2016/2017 planning period, PJM allocated a total of 35,034.9 MW of residual ARRs, up from 30,118.1 MW in the 2015/2016 planning period, with a total target allocation of $7.0 million for the 2016/2017 planning period, down from $7.7 million for the 2015/2016 planning period.

Residual ARRs. If ARR allocations are reduced as the result of a modeled transmission outage and the transmission outage ends during the relevant planning year, the result is that residual ARRs may be available. These residual ARRs are automatically assigned to eligible participants the month before the effective date. Residual ARRs are only available on paths prorated in Stage 1 of the annual ARR allocation, are only effective for single, whole months and cannot be self scheduled. Residual ARR clearing prices are based on monthly FTR auction clearing prices. In the 2015 to 2016 planning period, PJM allocated a total of 26,845.4 MW of residual ARRs, up from 22,737.4 MW in the first seven months of the 2014 to 2015 planning period, with a total target allocation of $7.5 million for the 2015 to 2016 planning period, down from $9.0 million for the first seven months of the 2014 to 2015 planning period. Total Residual ARR allocations for the 2013 to 2014 planning period were 15,417.5 MW for $4.7 million. This large increase in residual ARR allocations over the 2013 to 2014 planning period was primarily a result of PJM’s significant reductions in Annual ARR Stage 1B allocations. The outages were only assumed in order to reduce the initial allocation. As a result, there were more available ARRs during the year which were distributed as residual ARRs. • ARR Reassignment for Retail Load Switching. There were 53,343 MW of ARRs associated with $503,400 of revenue that were reassigned in the 2014 to 2015 planning period. There were 43,089 MW of ARRs associated with $504,600 of revenue that were reassigned for the first seven months of the 2015 to 2016 planning period.

Residual ARRs. If ARR allocations are reduced as the result of a modeled transmission outage and the transmission outage ends during the relevant planning year, the result is that residual ARRs may be available. These residual ARRs are automatically assigned to eligible participants the month before the effective date. Residual ARRs are only available on paths prorated in Stage 1 of the annual ARR allocation, are only effective for single, whole months and cannot be self scheduled. Residual ARR clearing prices are based on monthly FTR auction clearing prices. Residual ARRs with negative target allocations are not allocated to participants. Instead they are removed and the model is rerun. In the 2017/2018 planning period, PJM allocated a total of 39,596.4 MW of residual ARRs, up from 35,034.9 MW in the 2016/2017 planning period, with a total target allocation of $17.5 million for the 2017/2018 planning period, up from $7.0 million for the 2016/2017 planning period. • ARR Reassignment for Retail Load Switching. There were 44,823 MW of ARRs associated with $339,500 of revenue that were reassigned in the 2017/2018 planning period. There were 44,056 MW of ARRs associated with $492,500 of revenue that were reassigned for the 2016/2017 planning period.

Residual ARRs. If ARR allocations are reduced as the result of a modeled transmission outage and the transmission outage ends during the relevant planning year, the result is that residual ARRs may be available. These residual ARRs are automatically assigned to eligible participants the month before the effective date. Residual ARRs are only available on paths prorated in Stage 1 of the annual ARR allocation, are only effective for single, whole months and cannot be self scheduled. Residual ARR clearing prices are based on monthly FTR auction clearing prices. In the 2014 to 2015 planning period planning period, PJM allocated a total of 22,532.9 MW of residual ARRs, up from 15,417.5 MW in the 2013 to 2014 planning period, with a total target allocation of $8.2 million for the 2014 to 2015 planning period, up from $4.7 million for the 2013 to 2014 planning period. This 46.2 percent increase in residual ARR volume was primarily a result of PJM’s significant reductions in Annual ARR Stage 1B allocations. The assumed outages did not materialize resulting in more available ARRs which were distributed as residual ARRs.

Residual ARRs. If ARR allocations are reduced as the result of a modeled transmission outage and the transmission outage ends during the relevant planning year, the result is that residual ARRs may be available. These residual ARRs are automatically assigned to eligible participants the month before the effective date. Residual ARRs are only available on paths prorated in Stage 1 of the annual ARR allocation, are only effective for single, whole months and cannot be self scheduled. Residual ARR clearing prices are based on monthly FTR auction clearing prices. In the first four months of the 2016 to 2017 planning period, PJM allocated a total of 29,478.9 MW of residual ARRs, up from 18,043.0 MW in the first four months of the 2015 to 2016 planning period, with a total target allocation of $5.7 million for the first four months of the 2016 to 2017 planning period, unchanged from $5.6 million for the first four months of the 2015 to 2016 planning period.

Residual ARRs. Effective August 1, 2012, PJM is required to offer ARRs to eligible participants when a transmission outage was modeled in the Annual ARR Allocation, but the facility becomes available during the relevant planning year. These ARRs are automatically assigned the month before the effective date and only available on paths prorated in Stage 1 of the Annual ARR Allocation. Residual ARRs are only effective for single, whole months, cannot be self scheduled and their clearing prices are based on monthly FTR auction clearing prices. In the 2012 to 2013 planning period PJM allocated a total of 9,647.6 MW with a total target allocation of $3,471,223. • Demand. Total requested volume in the annual ARR allocation was 164,770 MW for the 2012 to 2013 planning period with 64,160 MW requested in Stage 1A, 27,325 MW requested in Stage 1B and 57,053 MW requested in Stage 2. This is up from 148,538 MW for the 2011 to 2011 planning period with 64,160 MW requested in Stage 1A, 22,208 MW requested in Stage 1B and 57,053 MW requested in Stage 2. The ATSI integration accounted for 5,434 MW of increased demand. The total ARR volume allocated is limited by the amount of network service and firm point-to-point transmission service. Several constraints were over allocated in the 2012 to 2013 Stage 1A ARR Allocation, consistent with the tariff, with a total over allocation of 892 MW.

Residual ARRs. Only ARR holders that had their Stage 1 ARRs prorated are eligible to receive Residual ARRs. Residual ARRs are available if additional transmission system capability is added during the planning period after the annual ARR allocation. This additional transmission system capability would not have been accounted for in the initial annual ARR allocation, but it enables the creation of residual ARRs. Residual ARRs are effective on the first day of the month in which the additional transmission system capability is included in FTR auctions and exist until the end of the planning period. For the following planning period, any Residual ARRs are available as ARRs in the annual ARR allocation. Stage 1 ARR holders have a priority right to ARRs. Residual ARRs are a separate product from incremental ARRs. Effective August 1, 2012, Residual ARRs are also available for eligible participants when a transmission outage was modeled in the Annual ARR Allocation, but the transmission facility becomes available during the modeled year. Residual ARRs awarded due to outages are effective for single, whole months and cannot be self scheduled. ARR target allocations are based on the clearing prices from FTR obligations in the effective monthly auction, may not exceed zonal network services peak load or firm transmission reservation levels and are only available up to the prorated ARR MW capacity as allocated in the Annual ARR Allocation. Table 13-24 shows the Residual ARRs automatically allocated to eligible participants, along with the target allocations from the effective month. In the first four months of the 2015 to 2016 planning period planning period, PJM allocated a total of 10,607.0 MW of residual ARRs, up from 9,826.4 MW for the first four months of the 2014 to 2015 planning period with a total target allocation of $4.0 million for the first four months of the 2015 to 2016 planning period, down from $5.1 million for the first four months of the 2014 to 2015 planning period. Some ARRs that were previously allocated in Stage 1B are now being allocated as Residual ARRs on a month to month basis without the option to self-schedule. Jan-15 4,068.7 1,559.2 38.3 $454,212 Feb-15 3,685.7 1,536.9 41.7 $492,060 Mar-15 7,930.9 1,735.0 21.9 $387,576 Apr-15 4,882.1 1,676.7 34.3 ($11,359) May-15 3,505.4 928.2 26.5 $267,930 Jun-15 5,513.9 1,775.9 32.2 $394,951 Jul-15 4,859.7 3,047.7 62.7 $1,563,502 Aug-15 4,142.6 2,932.5 70.8 $1,071,790 Sep-15 3,393.8 2,850.9 84.0 $973,555 Tota...

Residual ARRs. Effective August 1, 2012, PJM is required to offer ARRs to eligible participants when a transmission outage was modeled in the Annual ARR Allocation, but the facility becomes available during the relevant planning year. These ARRs are automatically assigned the month before the effective date and only available on paths prorated in Stage 1 of the Annual ARR Allocation. Residual ARRs are only effective for single, whole months, cannot be self scheduled and their clearing prices are based on monthly FTR auction clearing prices. For the 2013 to 2014 planning period, through September 2013, PJM allocated a total of 11,586.4 MW of residual ARRs with a total target allocation of $3.3 million.

Residual ARRs. Effective August 1, 2012, PJM is required to offer ARRs to eligible participants when a transmission outage was modeled in the Annual ARR Allocation, but the facility becomes available during the relevant planning year. These ARRs are automatically assigned the month before the effective date and only available on paths prorated in Stage 1 of the Annual ARR Allocation. Residual ARRs are only effective for single, whole months, cannot be self scheduled and their clearing prices are based on monthly FTR auction clearing prices. For the 2013 to 2014 planning period, through September 2013, PJM allocated a total of 11,586.4 MW of residual ARRs with a total target allocation of $3.3 million.