How is cost allocation calculated for network upgrades?

The Feasibility Study report represents the total cost of the upgrades. Cost allocation per project is provided in the System Impact Study phase. PJM has a set of cost allocation criteria that determines whether the project will be assigned a cost for their impact on the facility. If the upgrade is greater than $5 million, then the project must increase the applicable facility rating by 1 percent and have a full megawatt contribution greater than 5 MW. If the upgrade is less than $5 million, it must either satisfy the criteria outlined above or have 5 percent DFAX on the facility and increase the facility rating by 3 percent. Furthermore, if the voltage level of the impacted facility is less than 500 kV, the project must have 5 percent DFAX or have a full megawatt contribution greater than 5 percent of the applicable facility rating. If the voltage level of the impacted facility is greater or equal to 500 kV, the project must have 10 percent DFAX or have a full megawatt contribution greater than 5 percent of the applicable facility rating. Please consult PJM Manual 14A, Attachment B for further details.

1. I have questions about the study results in my report. What’s the best way to get information?
2. What is Commercial Probability?
3. Can my project connect if the system upgrades in my report are not built yet?
4. How is cost allocation calculated for network upgrades?
5. Would downsizing my project reduce the network upgrade costs?
6. Are network upgrade costs allocated to projects in prior queues?
7. What does the "Type" column in the report index represent?
8. What is the difference between Gendeliv MW Impact and Full MW Impact?
9. Why are withdrawn or deactivated units highlighted in my report?
10. How much can I reduce my project size by?
11. Are projects allocated cost proportionally to their impact?
12. What does the ID# represent in the overload section of the report?
13. In the report index, what do the suffixes (such as C or E) mean for each generator?
14. What is the significance of the Local Energy Deliverability section?