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2009 Report - Pennsylvania Public Utility Commission

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Section 3 – Regional Reliability<br />

Regional Reliability Assessments<br />

The passage of the <strong>Pennsylvania</strong> Electricity Generation Customer Choice<br />

and Competition Act substantially changed the <strong>Commission</strong>'s jurisdiction as well<br />

as the <strong>Commission</strong>’s ability to compile data from the generation sector. As a<br />

result, most information on generation and transmission capacity is regional.<br />

Therefore, this section summarizes the regional reliability assessments of NERC,<br />

ReliabilityFirst and PJM for generation and transmission capability.<br />

The reliability of the interconnected bulk power system is defined in terms of<br />

two basic and functional aspects. Adequacy is the ability of the bulk power system<br />

to supply the aggregate electrical demand and energy requirements of the<br />

customer at all times, taking into account scheduled and reasonably expected<br />

unscheduled outages of system elements. Operating Reliability is the ability of the<br />

bulk power system to withstand sudden disturbances such as electric short circuits<br />

or unanticipated loss of system elements from credible contingencies. Adequacy<br />

can be expressed in terms of either reserve margin or capacity margin. Reserve<br />

margin is the difference between available resources and net internal demand<br />

(total demand less dispatchable, controllable capacity demand response),<br />

expressed as a percentage of net internal demand. Capacity margin is the<br />

difference between available resources and net internal demand, expressed as a<br />

percentage of available resources.<br />

North American Electric Reliability Corporation<br />

The North American Electric Reliability Corporation’s (NERC) mission is to<br />

ensure the reliability of the bulk power system in North America. To achieve this<br />

objective, NERC develops and enforces reliability standards; monitors the bulk<br />

power system; assesses and reports on future transmission and generation<br />

adequacy; and offers education and certification programs to industry personnel.<br />

NERC is a non-profit, self-regulatory organization that relies on the diverse and<br />

collective expertise of industry participants that comprise its various committees<br />

and sub-groups. It is subject to oversight by governmental authorities in Canada<br />

and the United States. NERC assesses and reports on the reliability and<br />

adequacy of the North American bulk power system according to eight regional<br />

areas. The users, owners, and operators of the bulk power system within these<br />

areas account for virtually all the electricity supplied in the United States, Canada,<br />

and a portion of Baja California Norte, Mexico.<br />

Electric Power Outlook for <strong>Pennsylvania</strong> 2008-2013 59

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