At its September 21, 2011 PJM Transmission Owners Agreement - Administrative Committee meeting, PJM presented slides depicting some differences between FERC and the states as to how generation projects are treated depending upon whether they desire to connect to the transmission or distribution systems, and whether or not they intend to make sales into the wholesale market or make sales to their host Electric Distribution Company (EDC) under Purchased Power Agreements (PPAs). With respect to NEM projects, some are quite small (under 1 MW), and current PJM tariffs, manuals, business rules, settlement systems, and zonal bus models are not designed to handle excess generation sales into the market for generation projects of such small size. Several state jurisdictions are rapidly moving forward with NEM tariffs and procedures that are potentially in conflict with PJM’s tariffs, manuals, business rules, and settlement systems. The TOA-AC recommended that PJM charter a new or existing stakeholder group to review existing PJM tariffs, manuals, business rules, and settlement systems to see how to best approach the state NEM programs and to accommodate the NEMs.