The value for Cost of New Entry (in ICAP terms) is determined in accordance with the Open Access Transmission Tariff. There may be different values for the Cost of New Entry for the 5 CONE Areas defined in the tariff.

A Delivery Year’s CONE Values are calculated escalating the prior Delivery Year’s CONE values based on the Handy Whitman index. Beginning no later than for the 2017/18 Delivery Year and continuing no later than every fourth Delivery Year, thereafter, PJM shall conduct a review of CONE for each CONE area and review the Net E&AS methodology.

The Net Cost of New Entry values can be found in the Planning Period Parameters postings for each respective Delivery Years (DY) on the RPM Auction User Information Page.

• A start date of Interconnection Service on or before the start of Delivery Year.
• At a minimum, an executed Impact Study Agreement to participate in a Base Residual Auction.
• An executed Interconnection Service Agreement to participate in an Incremental Auction.
• A submitted Capacity Modification transaction in eRPM in “Provisionally Approved” status.
• Established an RPM Credit Limit prior to an RPM Auction.

Load Management Products may be eligible to be offered as a Demand Resource (DR) into RPM Auctions or to be certified as an Interruptible Load for Reliability (ILR) Resource (for Delivery Years prior to 2012/2013).

Interested parties with Demand Resources should contact PJM prior to the opening of the Auction Window to create a new DR Resource. Once the resource has been created, a DR Modification is submitted by the participant in eRPM and approved by PJM. If the DR is planned, the Requirements for offering Planned DR in RPM Auctions FAQ should be consulted.

Once the Auction Window is open, an offer has to be submitted in order for the Demand Resource to be considered in the clearing process. If a commitment is cleared in the auction, individual sites are then registered in PJM’s Load Response application prior to the start of the applicable delivery year.

Prior to the 2012/2013 Delivery Year, ILR Resources must be registered in PJM’s Load Response application by March of the upcoming delivery year. Late registrations will not be considered. Approved ILR registrations will be transferred automatically into eRPM.

• An indication of the intended ATC path to deliver the external capacity into PJM is provided.
• The unit resides in the eRPM resource portfolio of a signatory of the PJM Operating Agreement.
• Twelve months of NERC/GADs unit performance data in PJM format is required to establish a unit’s EFORd.
• The resource owner or operator submits the required operating and maintenance information into PJM’s eDART and eGADs systems.
• The resource owner or operator performs winter and summer testing to verify the net capability of each unit.
• The external capacity without firm transmission must establish an RPM Credit Limit prior to an RPM Auction.
• The resource owner provides a letter of non-recallability.
• A communication path must be established between the PJM Dispatchers and the operator of the unit.
• The unit was not specified in any FRR Capacity Plan for the Delivery Year.