Abstract—The seven Independent System Operators and

Regional Transmission Organizations (ISO/RTOs) in the United States coordinate reliable power grid operations for two-thirds of its population and its electric generation. Each ISO/RTO provides regional planning and operation, energy market operation, outage coordination, transactions settlement, billing and collections, risk management, ancillary services, credit risk management, and more services. This paper shows how Smart Grid affects the essential roles in operation, market and planning in ISO/RTO. This paper also discusses current Smart Grid projects in PJM which covers 13 states and DC area in Northeast US. Some of the future smart grid trend and challenges in PJM and industry are discussed too.

Index Terms—Smart Grid, Phasor Measurement Unit, Demand Response, Regional Transmission Expansion Planning.

I. INTRODUCTION HE Smart Grid program was established in the Energy Independence and Security Act of 2007; the Smart Grid

has been identified as an important element of the Obama administration’s economic recovery program with the promise of creating jobs, contributing to energy independence and curbing greenhouse gas emissions. With money for developing and fielding new electric grid technology becoming available with the economic stimulus law, industry now needs standards for interoperability and security.

Generally speaking, smart grid is more focus on the end users or distribution system than transmission (high voltage) level shown in Figure 1. Since the electric power system is a highly integrated and meshed network, the implementation of smart grid technologies will be beneficial to everyone throughout the systems.

Figure 1 A View of Smart Grid

This paper addresses several smart grid related issues in

Zhenyu Fan, Yiming Mao and Tim Horger are with PJM Interconnection, 955 Jefferson Avenue, Norristown, PA 19403 USA (e-mail: fanz@pjm.com).

operation, market and planning of ISO and RTOs. The purpose of this paper is to highlight some of the major contributions of smart grid in transmission ISO/RTO level. Section 2 illustrates the historical smart grid activities and organizations in the industry. The impacts of smart grid on operation, markets and planning of ISO/RTO are covered in section 3. Section 4 describes the current smart grid projects in PJM. Some discussions on the future challenges are presented in Section 5.

II. SMART GRID DEVELOPMENT

A. Committees and Organizations A number of committees and organizations have formed to

begin the task of rolling out a smart grid and transferring the knowledge and experience gained in smaller scale pilot studies to the national grid: • The National Institute of Standards and Technology

(NIST) [1] has announced an aggressive three-phase program to develop key technical standards for an intelligent power distribution grid by the end of the year 2009. First step is to develop a consensus among utilities, equipment suppliers, consumers, standards developers and other stakeholders on needed standards; and producing a Smart Grid architecture, an initial set of standards to support implementation and plans for developing remaining standards by early fall. Then the next step is launching formal partnerships to develop the remaining needed standards. Finally it needs a program for testing and certification to ensure that Smart Grid equipment and systems comply with standards.

• Electricity Advisory Committee. [2] DOE created this committee and it is a group of industry experts that advises the department on strategies for modernizing the nation’s electricity delivery infrastructure and implementing the Energy Policy Act of 2005 and the Energy Independence and Security Act (EISA) of 2007.

• GridWise Alliance.[3] establishes work groups drawn from its members to address the challenges of successfully realizing a smart grid. Current work groups are focused on federal, regional, and state legislation and policy; implementation; and interoperability. And Gridwise Architecture Council is made up of industry experts who are focused on the interoperability of grid devices and systems. The council is defining a framework that will enable interoperability to transform electric power operations into a system that integrates markets and technologies.

• Electric Power Research Institute (EPRI) is working on a wide variety of research, development, and

What Smart Grid Means to an ISO/RTO? Zhenyu Fan, Yiming Mao and Tim Horger

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demonstration projects aimed at developing new electric power delivery technologies that support a smart grid. EPRI’s IntelliGridSM initiative is creating the technical foundation for a smart power grid that links electricity with communications and computer control to achieve tremendous gains in reliability, capacity, and customer services.

• The Galvin Electricity Initiative, [4] launched in 2005 in response to the massive East Coast blackout of August 2003, is headed by former Motorola chief Robert W. Galvin. Its aim is to create a power delivery system that is environmentally sound, fuel efficient, resilient, and robust; that can withstand natural and weather-related disasters; and that can mitigate the potential damage caused by terrorist attack. Coined “the perfect power system,” it will make affordable electricity available to all consumers and allow consumers to control their own energy use to the extent they choose.

• The Smart Grid Policy Center, established in 2007, will become the center of competency on policies and technologies that support the implementation and deployment of a smart grid.

• The Electric Drive Transportation Association released in January 2009 its Electric Drive Road Map for Energy Security, which details the need for advancing technological developments in electric drive and energy storage options. The EDTA is advocating for a smart charging infrastructure, which is an integral part to transportation and a smart grid, to enable the expansion of the electric vehicle market.

• The Federal Energy Regulatory Commission (FERC) [5] and the National Association of Regulatory Utility Commissioners (NARUC) [6] have joined together in a collaborative dialogue on facilitating the transition to a smart electric grid. This FERC/NARUC collaborative provides an opportunity for federal and state colleagues to work together on important new policies to support the vision of a smart grid.

• The North American Electric Reliability Corporation [7] worked directly with the utility industry to create the Critical Infrastructure Protection standards. NERC continues to maintain, update, and enforce these standards.

• DOE and the U.S. Environmental Protection Agency are cosponsoring the National Action Plan for Energy Efficiency, Vision for 2025, whose goal is to achieve “all cost effective energy efficiency by 2025.” Gains in efficiencies—termed our “efficiency resource”—could meet 50% or more of the growth in demand anticipated between now and 2025.

• The American Public Power Association (APPA) [8] convened a Public Power Smart Grid Task Force. The task force includes representatives from public-owned utilities, nonprofits, and private entities to develop recommendations enabling public owned utilities to prioritize smart grid investments.

• Edison Electric Institute’s [9] membership of shareholder-owned utilities has made implementation of a smart grid an EEI corporate goal. EEI seeks a rational evolution that

focuses on the deployment of smart grid technologies as the value of those technologies can be shown.

• The North American SynchroPhasor Initiative (NASPI) [10] community is working to advance the deployment and use of networked phasor measurement devices, phasor data-sharing, applications development and use, and research and analysis. Important applications today include wide-area monitoring, real-time operations, power system planning, and forensic analysis of grid disturbances. Phasor technology is expected to offer great benefit for integrating renewable and intermittent resources, automated controls for transmission and demand response, increasing transmission system throughput, and improving system modeling and planning.

• NARUC-FERC Demand Response Collaborative has been working with a broad group of interested persons to outline that action plan. It is expected to release a staff document on the scope of the Action Plan and to hold a conference to pursue a consensus about what should be done nationwide in Fall 2009. The 188 gigawatt potential savings for demand response does not count the additional energy and dollar savings that customers can achieve with improved energy efficiency.

There are technologies available today that can perform many of the functions associated with a Smart Grid, such as smart meters, smart appliances, demand response capabilities, micro-grid technology and more. However, these technologies were not designed to work on national Smart Grid standards and therefore may not be able to fully participate in the “fully interoperable” Smart Grid that will exist when all of the national Smart Grid standards are developed and implemented

B. ISO/RTO Vision of Smart Grid PJM published its vision of smart grid in 2007. The Smart

Grid concept envisions digital automation of the entire power supply system—from generator to consumer—to improve reliability and efficiency shown in Figure 2 [11]. The network would provide the open architecture, “plug-and-play” technology needed for the full end-to-end integration of the power system. In essence, the Smart Grid is about enabling the right information, at the right time to the right people.

Figure 2 PJM Vision of Smart Grid

III. SMART GRID FOR ISO/RTO There are three core functions in each ISO/RTOs:

Operation, Market and Planning. Smart grid technologies will affect and improve the performance of each area substantially.

A. Operation Interconnected power networks are very large, with

potentially tens of thousands of nodes and branches and thousands of generating units. In general, power systems must operate synchronously and this requires that the systems must operate cooperatively in order to maintain reliability of the entire system. Power system operations in the context of large regional electric markets typically require exchange of information and coordination of control actions among various entities. In order to make sure the control actions being taken are correct and safe, certain actions performed centrally require a positive confirmation, or, they must be supervised. Current SCADA/EMS applications can perform control and simulate the operation in close to real time.

Synchrophasors are precise grid measurements now available from monitors called phasor measurement units (PMUs). PMU measurements are taken at high speed (typically 30 observations per second – compared to one every 4 seconds using conventional technology). Each measurement is time-stamped according to a common time reference. Time stamping allows synchrophasors from different utilities to be time-aligned (or “synchronized”) and combined together providing a precise and comprehensive view of the entire interconnection. Synchrophasors enable a better indication of grid stress, and can be used to trigger corrective actions to maintain reliability.

Because they provide more precise data at a much faster rate, PMUs, also known as synchrophasor units, allow more finely calibrated observation of power flows on the grid and a more accurate determination of operating limits in real time.

NASPI has more than 500 connected PMUs feeding data into a "Super Phasor Data Concentrator" system based at the Tennessee Valley Authority. The current installed PMUs can be seen from the map in Figure 3. The collaborative NASPI effort involves the NERC, the U.S. Department of Energy (DOE), North American electric utilities, government and academic researchers and other industry participants. NASPI’s activities are funded by DOE, NERC and the voluntary industry organizations.

Figure 3 Current Installed PMUs

Real time monitors transmit a continual flow of information – wind speed, conductor temperature, line sag and tension, etc which traditionally not observed by operators. And these data can be processed and analyzed statistically (increasing/decreasing, variance/standard deviation, histogram data analysis, etc). All the information can be turned into very useful predictive advice.

Transmission line capacity is generally static rated. The operators may exceed the rating by 10-20 percent for short period during emergencies. Dynamic ratings are typically 5-15 percent above the normal ratings. It is considered a smart grid component because it applied the monitoring of real time system data that can be used in various applications. When transmission line flows are limited by their thermal capacity rather than voltage or stability limits, dynamic ratings offer advantages and challenges. Dynamic rating and real time monitoring are becoming important tools and can be considered a low-cost alternative for increased transmission capacity.

ISO/RTO is able to maximize the use of the transmission system to transfer more efficient generation to the load. The transfer capability is increased with the utilization of dynamic ratings. For example, transmission lines have higher transfer capabilities at cooler temperatures. A dynamic line rating system can allow the operator to maximize the line capacities and to adjust the ratings dynamically based on real time temperatures.

B. Market The driving force for today’s smart grid adoption is Advanced Meter Reading (AMR) or Advanced Meter Initiative (AMI), which offers a utility the ability to see individual or collective electrical usage in real-time and to create a more reliable energy market that follows supply demand principles, incentivizing end-users to conserve energy during periods of peak demand. The Energy Policy Act of 2005 requires state public utility commissions (PUCs) to consider the implementation of advanced metering and communications technology to enable electric consumers to manage energy use and cost through time-based rate schedules.

Digital electrical meter information utilized by a smart grid allows the end-user, in a real-time interactive manner, to lower electrical usage during periods of increased generation cost which can have a dramatic affect on the distribution grid. Turning from energy supply to energy demand, we must cooperate and collaborate in identifying and developing the opportunities for enhancing the development and deployment of demand response and energy efficiency. The potential for demand response and energy efficiency to reduce or reshape the needs for energy is enormous. As one step toward realizing that potential, the Energy Independence and Security Act of 2007 directs the FERC to complete a National Assessment of Demand Response and a National Action Plan on Demand Response. National Assessment of Demand Response was published in May 2009. The Assessment finds peak electricity demand reductions across the country are already 38 GW. But the potential for demand reductions goes as high as 188 gigawatts, or 20

percent of our peak load, with no demand response. In other words, the nation could see almost five times as much demand response as it has today and reduce the peak load and the need for expensive carbon and heat emitting peaking plants significantly. It is well known that consumers could save tremendous energy—and money—with more efficient lighting, air conditioning, appliances and machinery. But less well-known is the fact that the potential for efficiency improvements within the electric power industry from distribution to transmission and generation itself is large. This may be a new topic for which state-federal cooperation might be very fruitful. Real time pricing is more like AMI/AMR. Today many utilities lack a real-time view as to where the electricity they are sending out onto the grid ends up. Without a real-time view of distribution grid operations, utilities often rely on manually reading analog meters on a monthly basis to get a picture of end-users’ electrical usage. Under this model, utilities are able to see the total amount of energy consumed by an end-user, but not when that energy was consumed. Not knowing when an end-user is consuming energy is very detrimental to the utility as it does not allow for a correlation between the cost of energy as it is produced to when it is consumed, removing any price based incentive for conservation. Increases in electrical demand require electricity to be imported, raising transmission fees, or generated through the use of peaker plants. Peaker plants are generation facilities constructed specifically to be used in times of increased demand. The use of peaker plants on top of cheaper base-load generation facilities increase the utility’s operational cost, thus raising the real cost to produce electricity. Price increases of this nature are not reflected to the end-users in real-time, as electrical rates are static and fixed by each state’s public utility commission. Fixed rates during periods of upwardly fluctuating generation cost, removes the market incentive for end-users to conserve energy. The result is a utility industry that is constantly struggling to meet summer peak demands and is thus forced to look at construction of additional generation facilities.

C. Planning Each ISO/RTO has to plan the system for the future

generation/load growth. PJM produces Regional Transmission Expansion Plan (RTEP) to address potential violations in transmission system based on mandatory national standard and PJM regional standards. Those violations include transmission overloads, voltage limitations and other reliability standard violations. The objective of this plan is to keep transmission system running reliably in the near future. Once the violations are identified, PJM will develop plans with TOs or developers to eliminate those violations. Once agreed solutions are decided and approved by PJM’s independent governing board, the transmission companies will construct those upgrades and make necessary changes to existing transmission system [12].

There are many factors will affect the RTEP. Here are some of them [13]:

• Forecasted Load growth

• Demand-side-response efforts and distributed generation additions (smaller generators located near where the power is used)

• New generating resources and non-utility transmission facilities to connect to the grid

• Merchant transmission interconnection request

With smart grid, demand side response will increase significantly, which will in turn affects RTEP results. The potential impacts on the planning would be reduced peak load due to demand side response. Also it potentially will delay major backbone system upgrades due to load growth.

In recent study, we see the portion of renewable energy resources requested by developers continue increases through the years and now they are significant portion of the all the new resources as shown in Figure 4.

Figure 4 PJM New Generation Interconnection Projects

As you can see in Fig 4 [12], wind energy alone is around 40% of all the new energy coming online. The total is around 55,000 MW of wind generation, but the problem is that due to nature of the resource and the existing technology, only small portion of their max output could be accounted as reliable energy sources, which can be depend on in peak load situation. With smart grid technology such as energy storage solution, we can dramatically increase the predictability of power output for those renewable energy facilities and make them more dependable and responsible for satisfying system load demand.

Smart grid technology also affects merchant transmission interconnection request. More projects start to use smart grid technology to achieve their goals to transfer power from one end to another with more precise control on the power flow direction and the amount of power. For example, Neptune project transfers 685 MW from NJ to NY using HVDC lines and MAPP project used HVDC lines to transer thousands of MW (as shown in Figure 5). Linden project transfers 385 MW from NJ to NY using VFT (Variable Frequency Transformer).

Figure 5 MAPP's HVDC Link

IV. PJM AND SMART GRID Advanced technology will open a new frontier for the grid

in many ways. A grid that is based on smart grid technology and electrification of transportation and delivering more real-time information will enable opportunities for consumer efficiency and smart appliances that increase the utilization of assets off peak.

A Smart Grid Working Group was formed to develop a cohesive approach to be used by PJM Transmission Owners to provide recommendations for the implementation of technologies in PJM.

A. Advanced Control Center (AC2) Positioned for future expansion and aligned with PJM’s

forward-looking technology strategy, the Advanced Control Center (AC2) program is currently in development. At its foundation, AC2 is being built on open systems architecture. The AC2 program goals are two-fold: upgrade the main Control Center with state-of-the-art technology and systems and build a parallel Control Center with the same technology. The program also aligns processes and job functions with its goals.

Both facilities will operate in parallel to each other, and either will be capable of controlling the entire Regional Transmission Organization (RTO). Both facilities will use new technology to improve the reliability, customer value and productivity of operations through development of advanced applications including the generation control application, intelligent event processing and improved visualization. These new approaches are considered to be ground-breaking and could change the way the grid is observed, managed and operated.

While the architectural framework will improve system reliability and security, it will also enable better managing of long-term Information Technology operations and maintenance costs through the Service Oriented Architecture (SOA) strategy. The SOA approach marries business value to technology strategy.

AC2 will be the next generation of Energy Management System/Market Management Systems with a focus on redundancy, reliability, scalability, performance and security. It will leverage industry standards and adopt/define new standards to maximize the investment in technology. AC2 will

take a “building block” approach, which will enable interoperability of software applications from multiple vendors, integration of advanced technologies, and reduction of support and maintenance costs.

The enterprise service bus being developed in AC2 will be a necessary backbone of the architecture to enable the Smart Grid network. This open and modular framework puts PJM on the leading edge of plug-and-play technology and the evolution of the Smart Grid of the future.

B. Renewable Energy and GATS The Regional Greenhouse Gas Initiative (RGGI) is the first

mandatory, market-based effort in the United States to reduce greenhouse gas emissions. Ten Northeastern and Mid-Atlantic states will cap and then reduce CO2 emissions from the power sector 10% by 2018.

On PJM side, the Generation Attribute Tracking System (GATS) is created and it is a centralized registry and accounting system that enables renewable electricity markets and information disclosure of generation attributes. The system creates a certificate for each megawatt-hour (MWh) of electricity production. By capturing information about electric generation on the GATS certificates, various market and regulatory requirements can be enabled. For generator owners, the system provides a means for monetizing the premium of renewable generators. For electric suppliers, the system provides a means for complying with renewable portfolio standard requirements, as well as environmental disclosure policies which require electricity suppliers to provide information about fuel mix and environmental emissions. The system can also be used by suppliers that are marketing voluntary “green” electricity products. For state agencies seeking effective ways to implement energy policies and regulations, a certificate approach and central database provide the tools to monitor, verify and document compliance. Figure 6 shows a basic structure of GATS system.

Figure 6 The Structure of GATS

On the other hand, a Renewable Energy Dashboard was created and it provides a glimpse of just how much green energy is on the grid already and what's proposed in years to come. The snapshot indicates where there are proposed renewable generation projects within PJM's area. Whether it's wind, solar, hydroelectric, captured methane or other forms of renewable generation, many states served by PJM have developed, or are developing, their own standards and requirements for integrating renewable energy into the

power system. This site contains information as tracked through PJM-EIS’s Generation Attribute Tracking System (GATS).

C. Plug-in Hybrid Electric Vehicle/Storage technologies There’s no doubt the integration of transportation and the electric system is coming. PJM is taking the lead with utilities and ISO/RTOs in the industry to collaborate the development of this technology. The plug-in electric vehicle (PEV) reality still lies in the future, but the vision of that day is edging close enough to realization that we have a genuine opportunity to shape and facilitate its arrival. The basic idea is shown in Figure 7.

The painfully dramatic spike that took the price of gasoline to over $4 per gallon in 2008—called by some the “psychological breaking point”—finally made independence from foreign oil a national goal. The importance of reducing carbon dioxide (CO2) emissions to protect our global environment is attracting broad and serious consensus.

Figure 7 PHEV Integration into Grid

The power industry has begun to confront the need for technological innovation and infrastructure development to revitalize the economy. There’s currently room on PJM’s electric grid for 25 million PEVs to utilize off-peak charging. As technology advances, the energy stored in the batteries of aggregated groups of PEVs can be made available to flow back to the grid when needed for frequency control and load balancing. That’s known as the V2G (vehicle-to-grid) concept, and it has the potential to produce revenue to PEV owners to offset their investment in their vehicles. When the vehicle is plugged in, it can respond to a real-time signal from PJM and discharge power from its batteries back to the grid. A group called the Mid-Atlantic Grid Interactive Car Consortium (MAGICC), of which PJM is a member, is evaluating the opportunities this presents.

Virtually from moment to moment, the power grid balances—“regulates”—the generation of electricity in relation to the demand for electricity. The grid operator’s control computer sends a “regulation signal” to power generators every four seconds. The signal tells them the level at which they should send power to the grid to keep supply and demand in balance. If the balance tips, power may need to be rapidly boosted or reduced.

The adoption of PEVs promises to reduce carbon dioxide emissions by as much as 60 percent and cut significantly the

nation’s dependence on foreign oil. The impact on consumer cost speaks for itself, e.g. the estimated cost of charging a PEV at off-peak rates is the equivalent of buying gasoline at 60 cents per gallon.

D. Eastern Interconnection Planning Collaborative (EIPC) Transmission expansion plans in the Eastern

Interconnection are developed today and coordinated on a regional and super-regional basis, but are not fully coordinated on an interconnection-wide basis. Joint statement Representatives from 17 bulk power system planning authorities in eastern North America as shown in eastern interconnection in Figure 8 have agreed to work jointly on forming an Eastern Interconnection Planning Collaborative (EIPC) for the sole purpose of developing an interconnection-wide view and analysis of regional transmission plans. Analyzing future transmission needs, especially as they relate to renewable resources, will necessitate a multi-regional approach to transmission planning that considers interconnection-wide impacts. Expanding on the existing planning expertise and protocols already employed on a regional basis in the Eastern Interconnection is the most efficient and timely means of accomplishing this goal. The EIPC will develop a coordinated roll-up of existing transmission plans, analyze the combined system on an interconnection-wide basis, and identify gaps relative to state, provincial, regional, or federal policy goals.

This full coordination can most effectively be done through a single collaborative approach that builds on existing processes. Expanding existing processes to cover the entire Eastern Interconnection will require a “bottom-up” approach with broad stakeholder involvement, in particular, ensuring a role for federal, state and provincial officials.

Figure 8 Eastern Interconnection and Other NERC regions

E. Phasor Measurement Units(PMUs) Given the value of PMUs in enhancing reliability, PJM is

cooperating with the North American Electric Reliability Corp. (NERC) as part of the North American SynchroPhasor Initiative (NASPI) to become a data concentrator hub, responsible for collecting PMU data from PJM’s footprint for wide-area visibility. This advanced grid-monitoring technology enhances reliability by increasing the ability of grid operators to collect and analyze data on system conditions over a wide area at a much higher frequency. Digitizing the

grid with phasor measurement units (PMUs) can give operators a lot more data to work with. PJM's control room gets data from 50,000 control points every 4-10 seconds but rolling out PMUs can allow it to get data 30 times/second. The current network has 15 installed already but its members will need to install many more to tap their full potential. Phasors let the PJM to do real-time monitoring of the network but with enormous busses, the system will need 1,000 or more PMUs to extend the ability to its entire network.

F. Demand Side Response and Energy Efficiency PJM’s Economic Load Response program enables demand

resources to voluntarily respond to PJM locational marginal prices (LMP) by reducing consumption and receiving a payment for the reduction. Using the day-ahead alternative, qualified market participants may offer to reduce the load they draw from the PJM system in advance of real-time operations and receive payments based on day-ahead LMP for the reductions.

The economic program provides access to the wholesale market to end-use customers through CSPs to curtail consumption when PJM LMPs reach a level where it makes economic sense. The growth in participation by end-use customers since 2002 has been significant. The graph in Figure 9 shows the increase in total megawatt-hours (MWh) of demand response provided through CSPs from year to year. [14].

Figure 9 Demand Response in PJM Market

The FERC which oversees wholesale electricity markets throughout the US, had ordered PJM in 2007 to consider ways in which energy efficiency projects could participate in future RPM auctions. Following many months of discussions with stakeholders, and over the objections of power generators and traders, PJM submitted in December its eligibility rules for energy efficiency that were largely approved recently. Under PJM’s rules, the minimum amount of energy savings that will be eligible to bid in the RPM auction will be 100 kilowatts, far larger than the peak demand reduction that might result from efficiency improvements in an individual appliance or home. However, electric utilities and independent contractors are expected to bundle up the peak demand savings from groups of residential and small commercial customers to provide an

increment of demand reduction that can qualify for RPM auction.

New investments in energy efficiency should help lower the cost of meeting the peak demand for power on hot summer days. Energy Efficiency in the RPM auction will provide a new source of funding for efficiency projects, allowing the savings to consumers to grow.

V. DISCUSSIONS AND FUTURE CHALLENGES The impact of smart grid on ISO/RTO especially for PJM is

presented in this paper. Some of the current development of smart grid related projects in PJM is briefly discussed. It means opportunities and challenges to ISO/RTOs as Smart Grid evolves. Managing the future growth of the electric system is an integral part of PJM Interconnection's role as an ISO/RTO. The Smart Grid will be an evolutionary process that methodically introduces intelligence into the existing grid, without negatively impacting customer service and reliability. The lines between transmission and distribution will blur as more supply resources (including DR) come online across the distribution network and consumers have greater ability to perform as both demand and supply resources. Many Smart Grid capabilities require the coordination of deployment across the electricity supply chain. It’s all about supply and demand. As an example, a dynamic pricing implementation requires coordination from the ISO/RTO’s through distribution/LSE and down to the customer.

There are technologies available today that can perform many of the functions associated with a Smart Grid, such as smart meters, PMUs, smart appliances, demand response capabilities, micro-grid technology and more. However, it needs a national Smart Grid standard so that these technologies can be implemented to operate and work.

VI. REFERENCES [1] http://www.nist.gov [2] http://www.oe.energy.gov/eac.htm [3] http://www.gridwise.org/ [4] http://www.galvinpower.org/ [5] http://www.ferc.gov [6] http://www.naruc.org [7] http:/www.nerc.com [8] http://www.appanet.org [9] http://www.eei.org [10] http://www.naspi.org [11] PJM Smart Grid Report [Online]. Available: http://www.pjm.com [12] 2008 Regional Transmission Expansion Plan Report [Online].

Available: http://www.pjm.com [13] PJM Regional Transmission Expansion Planning Process [Online].

Available: http://www.pjm.com [14] PJM Demand Side Response Report [Online]. Available:

http://www.pjm.com

Zhenyu Fan (SM 2009) received his Ph.D in Electrical Engineering from Clemson University, Clemson, SC. From 2004-2006, he worked as a consultant in KEMA T&D. He is currently working as a Senior Engineer in Market Simulation Department in PJM Interconnection. His industry interests are energy market, power system operation and planning.

Yiming Mao has a PhD degree in power engineering from Drexel University in Philadelphia. He is working in transmission planning depertment in PJM interconnection since 2007.

Tim Horger is responsible for managing the Financial Transmission Rights markets and Market Efficiency group for PJM. He has extensive

experience in the energy markets and power-system engineering. He received a Bachelor of Science in Electrical Engineering from Drexel University. He also received a Master of Science in Systems Engineering from Pennsylvania State University.