The New Services Queue is currently processed in a manner to coordinate the impacts of all resources, and all required reinforcements, in a single queue so that the planning of reinforcements is efficient and reduces the amount of “over-build” which would occur on the system. However, under the current Tariff the rules, some small generation resources may be delayed as a result of unintended consequences related to multiple rules in the study process. In order to complete the evaluation of projects, and determine the projects ability to be included in the Alternate Queue Process, PJM must wait for the queue to close which may delay certain small generation projects. Additionally, as a result of cost allocation rules associated with New Service Requests which require that all queue projects in an individual queue support the funding of upgrades for facilities to which they contribute load when the upgrade costs are less than $5 million, PJM must wait for the queue to close to determine cost allocation.
Another issue has been identified in that all projects in the New Services Queue, with the exception of Upgrade Requests (requests to obtain Incremental Auction Revenue Rights) and Long Term Firm Transmission Service customers, are provided multiple studies to review the specification and cost of upgrades prior to the need to commit to a Facilities Study. When these types of projects are provided their Facilities Study Agreements, PJM and the affected Transmission Owners, have not had an opportunity to refine or attempt to optimize the reinforcements specified which results in the need to perform a review of the upgrades during the Facilities Study which may delay this process.