2020 RRS Annual Assessment

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Highlights • Anticipated Reserve Margins do not fall below the Reference Margin Level for any year of the assessment period in SERC PJM. • Reduced load growth, energy efficiency, generation shifts, and aging infrastructure drivers, among others, continue to shift transmission need away from large-scale, cross-system backbone projects toward projects focusing on transmission owner criteria. Projected Demands, Resources, and Reserve Margins (Summer) Demand (MW) 1 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total Internal 21,817 22,163 22,572 22,914 23,322 23,570 23,770 23,978 24,218 24,438 Demand Response 919 933 951 965 982 993 1,002 1,011 1,021 1,030 Net Internal 20,898 21,230 21,621 21,949 22,340 22,577 22,768 22,967 23,197 23,408 Resources (MW) Anticipated 31,654 31,565 31,456 31,736 31,736 31,736 31,736 31,736 31,736 31,736 Prospective 32,046 34,135 36,972 42,544 44,243 44,970 45,397 45,664 45,827 45,827 Reserve Margins (%) 2 Anticipated 51.47% 48.68% 45.49% 44.59% 42.06% 40.57% 39.39% 38.18% 36.81% 35.58% Prospective 53.34% 60.79% 71.00% 93.83% 98.04% 99.19% 99.39% 98.83% 97.56% 95.78% 1 Demand and resource reflected in this table are for PJM member companies located within SERC. 2 Reserve Margins in PJM are calculated for the entire PJM footprint since power flows around PJM without regard to Regional boundaries. No specific reserve margin requirement exists in the regional portions of PJM.

SERC PJM The SERC PJM subregion is a winter peaking system that consists of the following Planning Coordinators: PJM Interconnection, LLC. Natural gas-fired generation capacity now exceeds coal, and natural gas plants totaling over 50 GW comprise 80 percent of the generation capacity interconnection rights in PJM’s new services queue.

Existing On-Peak Generation (Summer) Generation Type Peak Capacity MW % Biomass 320 0.99 Coal 6,281 19.46 Gas 14,201 44.00 Hydro 766 2.37 Nuclear 3,576 11.08 Other 0 0 Petroleum 1,848 5.73 Pumped Storage 3,015 9.34 Solar 2,195 6.80 Wind W 75 0.23

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