Common use of Residual ARRs Clause in Contracts

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. Market Performance

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 30,118.1 MW of residual ARRs, up from 22,737.4 19,928.0 MW in the first seven ten months of the 2014 to 2015 planning period, with a total target allocation of $7.5 7.7 million for the 2015 to 2016 planning period, down from $9.0 7.9 million for the first seven ten 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 52,046 MW of ARRs associated with $504,600 612,900 of revenue that were reassigned for the first seven ten months of the 2015 to 2016 planning period. Market Performance

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 37,042.40 MW of residual ARRs, up from 22,737.4 22,532.9 MW in the first seven months of the 2014 to 2015 planning period, with a total target allocation of $7.5 8.6 million for the 2015 to 2016 planning period, down up from $9.0 8.2 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 allocationsallocations based on PJM’s choices about which outages to model. 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 55,638 MW of ARRs associated with $504,600 659,000 of revenue that were reassigned for the first seven months of the 2015 to 2016 planning period. Market Performance.

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 18,043.0 MW of residual ARRs, up from 22,737.4 9,826.4 MW in the first seven four months of the 2014 to 2015 planning period, with a total target allocation of $7.5 5.6 million for the 2015 to 2016 planning period, down up from $9.0 5.1 million for the first seven four 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 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 assumed outages were only assumed did not materialize resulting 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 33,567 MW of ARRs associated with $504,600 866,900 of revenue that were reassigned for the first seven months of the 2015 to 2016 planning period. Market Performance.