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The transmission grid conveys electricity over a system of high-voltage electric lines
that extends between electric generators and distribution companies. Since electric
supply must equal demand for electricity in real time, it takes a high degree of
coordination to ensure that at any given time the power fed into the grid equals the
amount of power that is finally distributed to consumers. Otherwise, system failures
and blackouts could occur.
North American Electric Reliability Council (NERC) Electric Reliability
Organization (ERO)
Historically, NERC supported transmission system reliability, planning, and coordination
through voluntary standards. The Energy Policy Act of 2005 authorized the
formation of an independent electric reliability organization (ERO) that will create
new mandatory and enforceable reliability standards for the interstate wholesale
electric transmission system. The FERC will have oversight to enforce compliance
among bulk system owners, operators, and users.
ReliabilityFirst Corporation (RFC)
ReliabilityFirst Corporation (RFC) is one of eight North American Regional Reliability
Councils, approved by NERC as of January 1, 2006. RFC succeeds three
former NERC Regional Reliability Councils: the Mid-Atlantic Area Council (MAAC),
the East Central Area Coordination Agreement (ECAR), and the Mid-American
Interconnected Network (MAIN). The configuration of RFC covers much of the
expanded PJM geographic footprint. RFC signed a joint coordination agreement
with the Midwest Reliability Organization – a fourth NERC region. The two councils
will coordinate the development of regional standards for submission to the ERO.
PJM Interconnection
PJM is a Regional Transmission Organization (RTO) that dispatches and coordinates
the flow of bulk power across the District of Columbia and all or parts of
13 states: Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey,
North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia. PJM
independently operates the wholesale electricity markets in its territory.
PJM consolidates the regional system’s transmission needs into a single coordinated
plan to ensure bulk power electric supply adequacy and to provide a foundation
for PJM’s wholesale energy and capacity markets. PJM recommends specific
transmission facility enhancements and expansions that comply with applicable
reliability standards, to satisfy economic planning requirements, to analyze generator
and merchant transmission requests for interconnection, and to equitably
allocate costs among parties for the system upgrades. PJM has a 5-year plan to
undertake transmission upgrades, as well as a 15-year plan for upgrades to high
voltage circuits (i.e., 230 kV and above) to take into account time frames required
for right-of-way acquisitions and new transmission construction.
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