PJM©2011

The Role of Electricity as a Transportation

Fuel

Sean McNamara

Manager, Member Relations

PJM Interconnection, LLC

October 16, 2011

www.pjm.com

PJM©20112

PJM’s Responsibilities

• Ensures the reliability of the high-voltage electric power

system

• Coordinates and directs the operation of the region’s

transmission grid

• Administers a competitive wholesale electricity market

• Plans regional transmission expansion improvements to

maintain grid reliability and relieve congestion

www.pjm.com

PJM©20113

Air Traffic Controllers for the

Transmission Grid….Operators of for Energy

Markets…

Match Generation to Load

PJM©20114

21% of U.S. GDP produced in PJM

PJM as Part of the Eastern Interconnection

with ATSI & Duke Integration

KEY STATISTICS

PJM member companies 730+

millions of people served 61

peak load in megawatts 162,230

MWs of generating capacity 184,992

miles of transmission lines 62,214

GWh of annual energy 832,331

generation sources 1,340

square miles of territory 213,900

area served 13 states + DC

Internal/external tie lines 247

• 26% of generation in

Eastern Interconnection

• 28% of load in

Eastern Interconnection

• 19% of transmission assets in

Eastern Interconnection

www.pjm.com

As of 4/1/2011

PJM©20115

PJM’s Role in the Smarter (Robust) Grid

Generation

Transmission & Sub-transmission

DistributionCustomer

Smart Metering, Demand

Response, PHEV, Energy

Conservation and

Distributed Resources

Substation AutomationSCADA and Phasor

Measurements

The Smart Grid is realized by merging data from these areas of automation to achieve a total end-to-

end systems view by integrating information technology and operational technology.

Energy Storage

ISO/RTO

Two-Way Communication and Control

PJM©20116

Smarter Grid Network – Smart Home

Grid

Signal

• Smart Appliance

Energy Management

• Smart Charger (PHEV)

Storage

• Ancillary Services Signals

• Price Signals

• Generation Mix

• Reliability Control

• Load Curtailment

Aggregator

PJM©20117

• Enable greater penetration of PHEVs through

coordination with state SMART Grid and retail

tariff innovation initiatives

• Develop infrastructure to support non-

traditional demand based regulation resources

• Develop operational tools and forecasting

techniques to enable PHEV deployment

• Develop Vehicle to grid / Plug-in hybrid

electric vehicles (PHEVs) protocol

• Participate in Mid-Atlantic Grid Interactive

Cars Consortium (MAGICC) – electric

companies, research institutes, and vehicle

manufacturers

• Test storage batteries in regulation markets

Integrate SMART Grid with PHEVs

PJM©20118

Load in GW

Hour of Day

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Regulation

Grid Benefits – Frequency Regulation

PJM©20119

Fast Regulation: Speed Matters…

A fossil power plant

following a regulation

command signal

Energy Storage

(batteries / flywheels)

accurately following a

regulation command

signal

Energy Storage Output

Regulation Signal

PJM©201110

AES Grid-Scale Energy Storage System

www.pjm.com

Operational Details

• Altairnano, Inc – Lithium Ion nano titanate battery

• Energy: 300 kWh

• Efficiency: 90% round trip

• Power: 1 MW for 15 minutes

• Usable Charge Range: 5% - 99%

PJM©201111

Grid

Signal • Frequency Regulation Signal

Aggregator

~ $850/day

~ $10/day (20 Hrs.)

“Cash Back” for Storage

1 MW

0.018 MW

1.018 MW

PJM©201112

Vehicles with Vehicle-2-Grid

Participating in the Regulation Market

Vehicles

• ~18% of U. S. Population is within the PJM territory

• 180,000 PEV Vehicles in the PJM Territory

V2G Equipped PEVs within PJM

• Assume 10% of Vehicles have V2G capability

• Bi-Directional Power (with inverter) – 15 kW

• 18,000 vehicles * 15 kW = 270 Mw

Availability for Participating in Regulation

• Plugged In 12 hours each day (6 pm–6 am)

365 days * 12 hours = 4380 hours/year

Payment for participation in the PJM Regulation Market

• PJM average historic price paid for regulation = $35/MWh

• PJM Regulation price during valley load periods = $28/MWh

• Per Vehicle: 4380 hrs * $28 * .015 MW = $1800 annually

• PJM Overall: 4380 hrs * 270 MW * $28 = ~$33,000,000 annually

PJM©201113

43,623

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In planning 1/4/2011

Wind Generation in PJM

www.pjm.com

PJM©201114

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PJM LoadAugust 26, 2009

PJM Load, MW

PJM Load and Wind Resources – August 26, 2009

PJM©201115

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PJM Load and Wind ContributionAugust 26, 2009

PJM Load, MW

PJM Total Wind, MW

PJM Load and Wind Resources – August 26, 2009

PJM©201116

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PJM Load and Wind ContributionAugust 26, 2009

PJM Load, MW

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PJM Load and Wind Resources – August 26, 2009

PJM©201117

Load (MW x 1000)

Hour of Day7 9 11 13 15 17 19 21 23

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Vehicle Charging Impact on PJM

1 3 5

80

60

20

40

Capacity for

25+ million

PEVs

Charging Energy

180,000 PEV Vehicles * 33 miles //

4 miles/ kWh = ~ 1500 MWh

~ 500 additional MW over 3 valley

hours

PJM©201118

Vehicle Economic Charging

Assumptions

• 1,000,000 PEV Vehicles by 2015

•~18% of U. S. Population is within the PJM territory

• ~ 180,000 PEV Vehicles in the PJM Territory

• ~ 33** Miles traveled per vehicle per day

• ~ Average vehicle fuel usage: 22** mpg

• ~ No tax compensation

Daily cost per PEV Vehicle

Gasoline: 33 miles/day * $3.00 /gal // 22 miles/gal = $4.50

Electric: 33 miles/day * $.07 / kWh // 4 miles/kWh = $0.60

Annual cost/savings

Cost:

Gasoline: 365 days * $4.50 /day = $1650

Electric: 365 days * $0.60 /day = $220

Savings:

~ $1400 annually per vehicle

180,000 vehicles (within PJM) = ~ $250,000,000 annual** U.S. Bureau of

Transportation Statistics

PJM©201119

• Smart Meter allows

car to roam

• Mid-Atlantic Grid

Interactive Car

Consortium (MAGICC)

• Over one year

experience

MAGICC – PJM’s PHEV Demonstration Project

www.pjm.com

PJM©201120

The Ohio State University

Smart@CAR Current Research Activities

www.pjm.com

• Modeling of PHEVs and interactions with the grid

• PHEV Energy Management

• PHEV-Grid Connectivity Issues

• PHEV Fleet Studies

PJM©201121

Smart@Car-a connection to the grid

PJM©201122

Silver Buck Shot – 1,000,000 Plug-In Electric Vehicle

Better Place / PJM Simulation Study

The Study

• Modeled the market and pricing impact of 1,000,000 PEVs on

the greater Washington DC / Baltimore area

• Transmission congestion issues

• Targeted area for PEV deployment

The Analysis

Three grid impact charging scenarios

• Unmanaged charging

• Consumer-price-incentivized charging (via time-of-use pricing)

• Managed charging via an aggregator

The Findings Unmanaged Managed Savings

Week $ Millions $ Millions

Feb 6.4 5.2 19%

Jun 20.5 11.4 44%

Annual 786.3 436 45%

PJM©201123

A 1,000 Volts – General Motors OnStar / PJM Pilot

www.pjm.com

PJM©201124