Duquesne Light Company's Default Service Plan

PJM

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Question: In the PJM State of the Market Report for 2016 Q3, the estimated Black Start Revenue Requirements for DLCO (Duquesne Zone) are as follows: 2016/2017=$100,000, 2017/2018 = $100,000, 2018/2019 = $3,900,000. Why is there a large increase in planning year 2018/2019 for Black Start revenue requirements for the DLCO zone?

Answer: Black Start units submit annual Black Start revenue requirements to PJM and the IMM for review and approval.  The revenue requirement includes capital, variable, training, and fuel storage costs related to Black Start Service. Zonal rates are based on the capability share of the Black Start Unit’s annual revenue requirements designated to serve that zone.

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Question: What is the current Schedule 1A rate for Duquesne Zone?

Answer: Please refer to the PJM Operating Agreement Transmission Tariff Manual 27 Schedule 1A for additional information on the charges.  The OATT Revisions for Mid-Atlantic Interstate Transmission, LLC Integration has the specific values.  Please see the web address:

http://www.pjm.com/~/media/committees-groups/committees/mc/20160929/20160929-item-04-fe-transition-reorganization-oatt-and-oa-revisions-redline.ashx

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Question: Can you provide the specific PJM Billing Statement Line Items ID#s that the DS Supplier is responsible as part of Rider 9’s Hourly Price Service formula rate?

Answer: The DS Supplier is responsible for all the charges identified in the SMA.  Rider 9 is an explanation of how the customer will be billed. Subsequently, this is how the supplier will be reimbursed and paid.  The primary charges/credits that the DS supplier is not responsible for include NITS, Transmission Enhancement,  Generation Deactivation, Expansion Cost Recovery, and Deferred Tax Adjustment.

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Question: PJM market monitor report forecasts black start charges to increase significantly in 2018 and 2019 for Duquesne zone. Please do you have an insight on when these charges will begin to show on suppliers bill?

Answer: The changes to black start will occur on the PJM planning year which is June through May. Suppliers should plan on any cost changes to black start to occur within that timeframe.

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The information provided in the Frequently Asked Questions (“FAQs”) section of the Site has been prepared by Duquesne and its advisors for the purposes of facilitating the Default Service auction process. The information presented and distributed here is subject to update, modification and/or amendment. The information is current as of the posting date. The material presented and distributed here is for informational purposes only and is made available with the understanding that any individual accessing it will use it for the sole purpose of participating in the aforementioned Default Service auction process. The information is not intended to form any part of the basis of any investment decision, valuation, or any bid that may be submitted during the Default Service auction process. This information should not be relied upon, and each recipient should make its own independent assessment of the subject opportunity after making all investigations it deems necessary.

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