AE1-210 System Impact Study Report

This System Impact Study Report (SIS) has been prepared in accordance with the PJM Open Access Transmission Tariff, 205, as well as the System Impact Study Agreement between Headwaters Wind Farm III LLC, the Interconnection Customer (IC), and PJM Interconnection, LLC (PJM), Transmission Provider (TP). The Interconnected Transmission Owner (ITO) is American Electric Power.

Revision 2: January 2023 - The AE1-210 System Impact Study Report has been revised to include finalized stability analysis and final MISO affected systems study results. Final scope and cost estimates will be provided as part of the Facilities Study

The intent of the System Impact is to determine a plan, with approximate cost and construction time estimates, to connect the subject generation interconnection project to the PJM network at a location specified by the Interconnection Customer. As a requirement for interconnection, the Interconnection Customer may be responsible for the cost of constructing: Network Upgrades, which are facility additions, or upgrades to existing facilities, that are needed to maintain the reliability of the PJM system. All facilities required for interconnection of a generation interconnection project must be designed to meet the technical specifications (on PJM web site) for the appropriate transmission owner.

In some instances an Interconnection Customer may not be responsible for 100% of the identified network upgrade cost because other transmission network uses, e.g. another generation interconnection or merchant transmission upgrade, may also contribute to the need for the same network reinforcement. The possibility of sharing the reinforcement costs with other projects may be identified in the Feasibility Study, but the actual allocation will be deferred until the System Impact Study is performed.

The System Impact study estimates do not include the feasibility, cost, or time required to obtain property rights and permits for construction of the required facilities. The project developer is responsible for the right of way, real estate, and construction permit issues. For properties currently owned by Transmission Owners, the costs may be included in the study.

An Interconnection Customer with a proposed new Customer Facility that has a Maximum Facility Output equal to or greater than 100 MW shall install and maintain, at its expense, phasor measurement units (PMUs). See Section 8.5.3 of Appendix 2 to the Interconnection Service Agreement as well as section 4.3 of PJM Manual 14D for additional information.

The Interconnection Customer (IC), has proposed a generating facility located in Randolph County, Indiana. The installed facilities will have a total capability of 100.0 MW with 13.0 MW of this output being recognized by PJM as Capacity. The proposed in-service date for this project is Sunday, October 31, 2021. This study does not imply a TO commitment to this in-service date.

AE1-210 will interconnect with on the AEP transmission system at the Desoto 345 kV substation.

Note: It is assumed that the 345kV revenue metering and gen lead installed for the #AE1-209 will be adequate for the additional generation.

The project may be responsible for a contribution to the following costs:

Note 1: PJM Open Access Transmission Tariff (OATT) section 217.3A outline cost allocation rules. The rules are further clarified in PJM Manual 14A Attachment B. The allocation of costs for a network upgrade will start with the first Queue project to cause the need for the upgrade. Later queue projects will receive cost allocation contingent on their contribution to the violation and are allocated to the queues that have not closed less than 5 years following the execution of the first Interconnection Service Agreement which identifies the need for this upgrade.

Note 2: For customers with System Reinforcements listed: If your present cost allocation to a System Reinforcement indicates $0, then please be aware that as changes to the interconnection process occur, such as prior queued projects withdrawing from the queue, reducing in size, etc, the cost responsibilities can change and a cost allocation may be assigned to your project. In addition, although your present cost allocation to a System Reinforcement is presently $0, your project may need this system reinforcement completed to be deliverable to the PJM system. If your project comes into service prior to completion of the system reinforcement, an interim deliverability study for your project will be required.

The total preliminary cost estimate is given in the table below. These costs do not include CIAC Tax Gross-up.

Attachment Facilities:

Non-Direct Connect Facilities:

Based on the scope of work for the interconnection facilities, it is expected to take a range of either 12 to 18 months if no line work is required or if line work is required, construction time would generally be between 24 to 36 months after the signing of an Interconnection Construction Service Agreement (as this is a FERC connection) and construction kickoff call to complete the installation of the physical connection work. This assumes that there will be no environmental issues with any of the new properties associated with this project, that there will be no delays in acquiring the necessary permits for implementing the defined interconnection work, and that all system outages will be allowed when requested.

The schedule for any required Network Impact Reinforcements will be more clearly identified in future study phases. The estimated time to complete each of the required reinforcements is identified in the "System Reinforcements" section of the report.

The estimates provided in this report are preliminary in nature, as they were determined without the benefit of detailed engineering studies. Final estimates will require an on-site review and coordination to determine final construction requirements.

No violations.

It is understood that the Interconnection Customer is responsible for all costs associated with this interconnection. The costs above are reimbursable to the Interconnected Transmission Owner. The cost of the Interconnection Customer’s generating plant and the costs for the line connecting the generating plant to the Interconnected Transmission Owner’s Transmission circuit are not included in this report; these are assumed to be the Interconnected Customer’s responsibility.

The Generation Interconnection Agreement does not in or by itself establish a requirement for the Interconnected Transmission Owner to provide power for consumption at the developer's facilities. A separate agreement may be reached with the local utility that provides service in the area to ensure that infrastructure is in place to meet this demand and proper metering equipment is installed. It is the responsibility of the developer to contact the local service provider to determine if a local service agreement is required.

Requirement from the PJM Open Access Transmission Tariff:

1. An Interconnection Customer entering the New Services Queue on or after October 1, 2012 with a proposed new Customer Facility that has a Maximum Facility Output equal to or greater than 100 MW shall install and maintain, at its expense, phasor measurement units (PMUs). See Section 8.5.3 of Appendix 2 to the Interconnection Service Agreement as well as section 4.3 of PJM Manual 14D for additional information.

2. The Interconnection Customer may be required to install and/or pay for metering as necessary to properly track real time output of the facility as well as installing metering which shall be used for billing purposes. See Section 8 of Appendix 2 to the Interconnection Service Agreement as well as Section 4 of PJM Manual 14D for additional information.

The Interconnection Customer will be required to install equipment necessary to provide Revenue Metering (KWH, KVARH) and real time data (KW, KVAR) for IC's generating Resource. See PJM Manuals M-01 and M14D, and PJM Tariff Section 8 of Attachment O.

The wind generation facility shall provide the Transmission Provider with site-specific meteorological data including::

• Wind speed (meters/second) - (Required)
• Wind direction (decimal degrees from true north) - (Required)
• Ambient air temperature (Fahrenheit) - (Required)
• Air Pressure (Hectopascals) - (Required)
• Humidity (Percent) (Accepted, not required)

The IC will be required to comply with all Interconnected Transmission Owner's revenue metering requirements for generation interconnection customers located at the following link: PJM - Transmission Owner Engineering & Construction Standards.

The Queue Project was evaluated as a 100.0 MW (Capacity 13.0 MW) injection in the area. Project was evaluated for compliance with applicable reliability planning criteria (PJM, NERC, NERC Regional Reliability Councils, and Transmission Owners). Potential Summer peak period network impacts were as follows:

(No impacts were found for this analysis)

PJM also studied the delivery of the energy portion of this interconnection request. Any problems identified below are likely to result in operational restrictions to the project under study. The developer can proceed with network upgrades to eliminate the operational restriction at their discretion by submitting a Merchant Transmission Interconnection request.

Note: Only the most severely overloaded conditions are listed below. There is no guarantee of full delivery of energy for this project by fixing only the conditions listed in this section. With a Transmission Interconnection Request, a subsequent analysis will be performed which shall study all overload conditions associated with the overloaded element(s) identified.

(No impacts were found for this analysis)

At this time winter peak analysis not required for this project.

At this time winter peak analysis not required for this project.

The Queue Project was evaluated as a 100.0 MW (Capacity 13.0 MW) injection in the area. Project was evaluated for compliance with applicable reliability planning criteria (PJM, NERC, NERC Regional Reliability Councils, and Transmission Owners). Potential light load period network impacts were as follows:

(No impacts were found for this analysis)

PJM also studied the delivery of the energy portion of this interconnection request. Any problems identified below are likely to result in operational restrictions to the project under study. The developer can proceed with network upgrades to eliminate the operational restriction at their discretion by submitting a Merchant Transmission Interconnection request.

Note: Only the most severely overloaded conditions are listed below. There is no guarantee of full delivery of energy for this project by fixing only the conditions listed in this section. With a Transmission Interconnection Request, a subsequent analysis will be performed which shall study all overload conditions associated with the overloaded element(s) identified.

(No impacts were found for this analysis)

PJM Short Circuit Analysis did not identify any new overduty breakers or >3% contribution to previously identified overduty breakers.

No mitigation was found to be required due to transient stability.

This project meets the power factor requirements.

Steady State Voltage analysis is not required for this queue project at this time.

The Queue Projects below are listed in one or more dispatch for the overloads identified in your report. These projects contribute to the loading of the overloaded facilities identified in your report. The percent overload of a facility and cost allocation you may have towards a particular reinforcement could vary depending on the action of these earlier projects. The status of each project at the time of the analysis is presented in the table. This list may change as earlier projects withdraw or modify their requests. This table is valid for load flow analyses only.

Files

• AE1-209_210-3-2-SIS - Dyn Analysis.docx --
• AE1-209 & AE1-210 SLD.docx --