PJM Interconnect io n, L.L.C. Second Revised Sheet No. 33

Rate Schedule FERC No. 44 Superseding First Revised Sheet N o. 33

Issued By : Craig Glazer Effect ive: March 27, 2009

Vice President, Federal Government Policy Issued On: December 12, 2008 SCHEDULE 6 PROCEDURES FOR DEMAND RESOURCES, ILR, AND ENERGY EFFICIENCY A. Parti es can part ia lly or wholly of fset th e amounts payable fo r th e Locational Reliabilit y Charge wi

th Demand Resources or ILR that ar e operated under the direct io n of the Office of th e Interconnect io n. FRR Enti ti es may reduce their capaci ty obligations wi

th Demand Resources that are operated under th e direct io n of th e Office of t he Interconnect io n and detailed in such ent it y’ s FRR Capa ci ty P lan. D emand Resources qualifying under the cri teria set fo rth below may be offered fo r sale or designated as Self

- Supply in th e Base Residual Auct io n, included in an FRR Capacity P la n, or offered fo r sale in any Incremental

A uct io n, fo r any Delivery Year fo r which such resource qualifies. I n addi tion, fo r Delivery Years th rough May

3 1, 2012, resources qualifying under th e cri teria set fo rth below may be cert ified as ILR on behalf of a P art y that has not elected th e FRR Alt ernat ive fo r a Delivery Year no lat er than th ree mo nt hs prior to th e fir st day of s uch Delivery

Y ear. Q ualified Demand Resources and ILR generally fa ll in one of th ree categori es, i .e., Guaranteed Load Drop, Fi rm Service Level , or Di

rect Load Control , as further specified in sect io n H and the PJM Manuals. Qualified Demand Resources and ILR may be provided by a Demand Resource Provider or ILR Provider (h ereinafter, “Provider”), notwi

th standing that such Provider is not a Party to this Agreement. S uch Providers m

ust satisfy the requ ir ements in sect io n I and the PJM Manuals. 1. A Party

m ust fo rmally notify, in accordance wi th t he requi

rements of

t he PJM Manuals and paragraph G of t his schedule as applicable, th e Office of the Interconnect io n of

t he Demand Resource or ILR that iti s pl acing under the di rect io n of the Office of the Interconnection. 2. A Party

m ust agree to reserve, for interruption at the di rection of th e Office of the Interconnect io n, at least 10 interruptions per Planning Period. 3. The Demand Resource or ILR mu st be available during th e summer period of June th rough September in th e corresponding Delivery Y ear to be certified, offered for sale or Self

- Supplied in an auction, or included as a Demand Resource in an FRR Capacit y Pl an f or the corresponding Delivery Year. 4

. A period of

no mo re than 2 hours prior notificatio n must apply to int erruptible customers. 5. The init iat io n of load int erruption, upon th e request of t he Office of

t he Interconnect io n, mu st be wi th in th e authori

ty of th e di spatchers of

th e Party . No ad di tional approvals should be required. 6. The init iat io n of load reduction upon th e request of t he Office of th e Interconnect io n is considered an emergency action and must be implementable prior to a vol

tage reduction.PJM Interconnect io n, L.L.C. Second Revised Sheet No. 34

Rate Schedule FERC No. 44 Superseding First Revised Sheet No. 34

Issued By : Craig Glazer Effect ive: March 27, 2009

Vice President, Federal Government Policy Issued On: December 12, 2008 7. A Party

m ust agree to reserve int erruptions of at least 6

- hour duration. A s a minimum, such 6

- hour duration for interruptions should be available on weekdays during the 8

- hour daily peak window for the appropri ate season. There will be no credi t given to Parti es who choose to provide in terruption less than 6 hours and/or exclusive of the above t ime period. 8. An ent it y of

fering fo r sale, designat ing fo r self

- supply, or including in any FRR Capacit y Pl an any Pl anned Demand Resource must demonstrate, in accordance wi th s tandards and proced

ures set fo rth in th e PJM Manuals, that such resource shall have th e capabilit y to provide a reduction in demand, or otherwise control lo ad, on or before th e start of t he Delivery Year fo r which such resource is committed. Providers of P lanned Demand Reso urces mu st provide a timeline including th e milestones, which demon strates to PJM’s satisfact io n that th e Planned Demand Resources will be available for the start of the Delivery Year, 45 days prior to a Base Residual Auct io n or Incremental Auct io n. P JM m ay v erify th e Provider’s adherence to the timetable at any time. 9. Select io n of

a D emand Resource in an RPM Au ction resul ts in commit ment of capacit y to th e PJM Region . D emand Resources that are so c ommitted mu st be regi stered to participate in th e Full Program Option of t he Em ergency Load Response program

a nd th us available fo r dispatch during PJM

- declared emergency events. B. The Unforced Capacit y value of a Demand Resource and ILR will be determined as: th e product of the Nominated Value of the Demand Resource, or the Nominated Value of th e ILR, times th e DR Factor, times th e Forecast Pool Requi rement. N ominated Val

ues shall be determined and reviewed in accordance wi th s ect io ns J and K, respect ively, and th e PJM Manuals. T he DR Factor is a factor es tablished by th e PJM Board wit h the advice of th e Members Co mmittee to reflect th e increase in th e peak lo ad carrying capabilit y in th e PJM Region d ue to Demand Resources and ILR

. P eak lo ad carrying capabilit y is defined to be the peak load that the PJM Region i s able to serve at the loss of lo ad expectation defined in th e Reliabilit y Principles and Standards. T he DR Factor is th e increase in th e peak lo ad carrying capabilit y in th e PJM Region d ue to Demand Resources and ILR, divided by the total Nominate d Val

ue of Demand Resources and ILR in th e PJM Region . Th e DR Factor will be determined using an analy ti cal program that uses a probabilist ic approach to determine reliabili ty
. T he determinat io n of t he DR Factor will consider th e reliabilit y of D emand Re sources and ILR, th e number of int erruptions, and the total amount of

load reduction.