5.9: Ohio RTEP Overview

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State RTEP Overviews Section PJM DE DC IL IN KY MD MI NJ NC OH PA TN VA WV.9: Ohio RTEP Overview MAP.3: PJM Service Area in Ohio PJM operates the electric transmission system shown on MAP.3 for American Electric Power (AEP) and Dayton Power & Light (DLCO). The transmission system in Ohio delivers power to customers from native generation resources and via power transfers across tie-line facilities with adjoining systems. Critical RTEP Issues in Ohio PJM continues to address a number of issues with a bearing on reliability in Ohio and the regional transmission expansion plans required to maintain reliability: PJM s body of analysis through December 31, 2006 has revealed several general conclusions that will help guide selection of a final package of backbone upgrades for submittal to and approval by the PJM Board in 2007. Those conclusions include: (1) The three proposed lines that terminate at South Canton, Kammer and Amos in western PJM each mitigate the reliability criteria violations along PJM s western and central interfaces as identified in the 1- year horizon; (2) from a market efficiency perspective, alternatives that connect back to the AEP 76 kv system provide the greatest opportunity for eastern load centers to access additional economical western generating resources. PJM 2006 Regional Transmission Expansion Plan 27

Section State RTEP Overviews The table which follows summarizes key critical issues facing Ohio and identifies earlier sections of this report where additional discussion may be found..9.1 Load Growth and Existing Generation Internal Load Growth Load Growth for summer and winter periods in shown in FIGURE.3 in Section.0.2. Peak summer load growth rates for the AEP and DLCO Transmission Owner zones within PJM are expected to be 1.2% and 1.4%, respectively, on average over ten years through 2016. Peak winter load growth rates for AEP and DLCO are expected to be 1.1% and 1.6%, respectively, on average over ten years through 201/16. Forecasted loads are modeled in power flow studies used to develop PJM s RTEP through December 2006. PJM s RTEP includes baseline transmission upgrades in Ohio to meet expected 2016 peak load conditions. Beyond 2016, additional transmission system expansion will be needed to meet expected peak load supply requirements. Ohio Critical Issues RTEP Topic Report References Importance to Ohio Generator Interconnection Requests 3.1, 3.3.3 New sources of electric power Renewables 3.1.3 Potential for renewable generation sources in Ohio. Wind Powered Generating Resources 3.2 Potential wind generation sites in Ohio. Generator Deactivation 3.3.2 Impact of loss of generation. DOE NIETC 3.3., 4.1, 4.6 Definition of corridors to facilitate development of transmission. Aging Infrastructure 3.7 Spare transformer recommendations via probabilistic risk assessment. Need for developing new backbone transmission 4.2, 4., 4.6, 4.7 New transmission to deliver generation and relieve congestion. Market Efficiency 4.8 Evolving 1-year system analysis on econometric impacts of proposed backbone upgrades. Reactive Planning 3.3., 4.9 Assessment of need for system upgrades for voltage support FIGURE.16: Existing Installed Capacity in Ohio Existing Generating Capability FIGURE.16 provides a snapshot of the existing installed capacity by fuel type in Ohio. Coal - 11,601.1 MW Hydro - 47. MW Other - 34 MW Oil - 61 MW Natural Gas -,079 MW 28 PJM 2006 Regional Transmission Expansion Plan

State RTEP Overviews Section.9.2 Generator Interconnection Requests PJM has received interconnection requests for 28 new generating resources proposed for installation in Ohio. The current status is summarized below. Status # of Projects MW In-Service 4 0 Under Construction 1 16 Active (Under Study) 16 3,373 Withdrawn 7 4,288 TOTAL 28 7,876 TABLE.2 includes generating resource interconnection requests located in Ohio. PJM received these requests during the windows of time through Queue R (as of December 31, 2006). The generator interconnection projects in this table are either under construction or active in PJM s interconnection process. Only transmission system enhancements associated with generator interconnection requests in Queues A through O with completed System Impact Studies are currently included in PJM s regional transmission expansion plans. Interconnection requests in Queues P, Q and R are in the Feasibility Study and System Impact Study phases of interconnection analysis, as of December 31, 2006. For the sake of reporting, generating resources that are fully in-service (designated IS ) are included in the summary tabulation above but are NOT separately enumerated in TABLE.2. A status code of IS-NC (in-service, no capacity) indicates a generator that is in-service for energy only. Such units have not requested consideration for capacity status. A status code of ISP (in-service, partial) denotes a generating resource that is only partially in-service and has not reached full capacity status. TABLE.2: Queued Generation Interconnection Requests in Ohio Queue Project Name MW MWC Status Schedule TO Fuel Type L01_AEP137 Bellefonte-N. Proctorville 138kV 16 16 UC 1/1/2008 AEP Biomass N12 North Haverhill 69 kv 7 ACTIVE 1/1/2008 AEP Coal N42 Mountaineer-Belmont 76kV 600 600 ACTIVE /1/2010 AEP Coal O21 Liberty 69kV 48 9.6 ACTIVE 9/30/2007 Dayton Wind P30 Bellefonte - N. Proctorville 138kV 20 20 ACTIVE 10/31/2007 AEP Biomass P44 City of Columbus 7 7 ACTIVE 12/31/2006 AEP Diesel P1 Stuart 34kV 7 7 IS-NC 6/1/2006 Dayton Coal P4 Sporn - Waterford 34kV 103 103 ACTIVE /1/2012 AEP Coal P West Lima 138kV 600 600 ACTIVE 10/1/2008 AEP Coal P61 Gavin #1 76kV 20 20 ISP 6/1/2007 AEP Coal P62 Gavin #2 76kV 20 20 ACTIVE /1/2007 AEP Coal R13 Tidd - Cantor Central 34kV 30 30 ACTIVE 9/30/2011 AEP Coal R14 Tait 69kV 1 1 ACTIVE 12/31/2006 Dayton Natural Gas R1 Adkins 34kV 9 9 ACTIVE 12/31/2006 Dayton Natural Gas R48 Antwerp - Payne 69kV 48 9.6 ACTIVE 12/1/2008 AEP Wind R49 Haviland - Milan 138kV 10 30 ACTIVE 11/1/2009 AEP Wind R0 Liberty - Blue Jacket 69kV 48 9.6 ACTIVE 2/1/2009 Dayton Wind R1 Kings Creek - Woodstock 69kV 48 9.6 ACTIVE 12/1/2010 Dayton Wind R2 Mechanicsburg - Darby 300 60 ACTIVE 10/1/2008 Dayton Wind PJM 2006 Regional Transmission Expansion Plan 29

Section State RTEP Overviews A generating unit is ineligible for capacity status until all transmission upgrades needed to ensure deliverability are completed. Only then will PJM grant a capacity status designation which permits a unit thereafter to participate in PJM s capacity market. FIGURE.17 shows the capacity rights requested, by fuel type, for generator interconnection requests in Queues A through R that are located in Ohio and are in-service, under construction or are active in PJM s interconnection process. MAP.36 shows the location of each generation interconnection request in Ohio. FIGURE.17: Queued Capacity by Fuel Type in Ohio Wind - 642 MW Coal - 2,707 MW Diesel - 7 MW Biomass - 18 MW Natural Gas - 24 MW 260 PJM 2006 Regional Transmission Expansion Plan

State RTEP Overviews Section MAP.36: Queued Generation Interconnection Requests in Ohio PJM 2006 Regional Transmission Expansion Plan 261

Section State RTEP Overviews.9.3 Generation Deactivations To date, only two generator unit have been deactivated since 2003: Conesville Units #1 and #2, each of 11 MW capacity. Identified reliability issues were resolved and the units were deactivated in January 2006. The location of these units is shown on MAP.37. MAP.37: Generation Deactivations in Ohio.9.4 Merchant Transmission Interconnection Requests As of December 31, 2006, PJM s interconnection queues contained no requests for merchant transmission. 262 PJM 2006 Regional Transmission Expansion Plan

State RTEP Overviews Section.9. Transmission Expansion Plans in Ohio MAP.38: New Major PJM Transmission Upgrades in Ohio - approved during 2006 Maintaining Baseline Reliability Upgrades Approved in 2006 Fundamentally, the principal objective of PJM s expansion planning protocol is to maintain a transmission system s compliance with applicable reliability standards. The baseline reliability upgrades approved by the PJM Board in 2006 for Ohio, greater than $10 million in scope, are summarized in TABLE.26 and shown on MAP.38. A complete listing of all system reinforcements approved by the PJM Board can be found on-line at: http://www.pjm.com/planning/rtepbaseline-reports/baseline-report.html PJM 2006 Regional Transmission Expansion Plan 263

Section State RTEP Overviews TABLE.26: New Major PJM Transmission Upgrades in Ohio - approved during 2006 System Upgrade Drivers Baseline Upgrades Network Upgrades TOI Upgrade Transmission Service Map Ref. Limiting Facility / Upgrade Description Baseline Load Growth/ Deliverability & Reliability Congestion Relief Economic Operational Performance Generator Deactivation Generation Interconnection Merchant Transmission Interconnection TO Local Issue Long-term Firm Transmission Service Date / Status Cost TO Zones States 1 Waverly- Sargents 138kV Circuit AEP OH Install new 34/138 kv transformer and reconfigure 138 kv system in Waverly-Sargents 138 kv area June 2009 $ 26. M AEP OH 264 PJM 2006 Regional Transmission Expansion Plan

State RTEP Overviews Section Transmission Upgrades Approved Prior to 2006 Transmission expansion upgrades approved by the PJM Board prior to 2006 are summarized in TABLE.27 and located on MAP.39. Additional discussion of these upgrades can be found in the February 22, 2006 PJM Regional Transmission Expansion Plan which can be found on-line at: http://www.pjm.com/planning/reg-trans-exp-plan. html A complete listing of all system reinforcements approved by the PJM Board can be found on-line at: http://www.pjm.com/planning/rtep-baselinereports/baseline-report.html MAP.39: Existing Major Transmission System Upgrade Plans in Ohio - approved prior to 12/31/0 PJM 2006 Regional Transmission Expansion Plan 26

Section State RTEP Overviews TABLE.27: Existing Major Upgrade Plans in Ohio - approved prior to 12/31/0 System Upgrade Drivers Baseline Upgrades Network Upgrades TOI Upgrade Transmission Service Map Ref. Limiting Facility / Upgrade Description Baseline Load Growth/ Deliverability & Reliability Congestion Relief Economic Operational Performance Generator Deactivation Generation Interconnection Merchant Transmission Interconnection TO Local Issue Long-term Firm Transmission Service Date / Status Cost TO Zones States 1 Tidd 34 kv Circuit Breakers Replacement of AA and AA1 breakers at Tidd 34 kv substation Replace breakers FF1 and FF2 at Tidd 34 kv Station AEP, Buckeye Power November 2004 $ 1.3 M AEP OH April 2006 $ 1.3 M Buckeye Power OH OH 2 Roberts-Bixby 138 kv Circuit AEP OH Install new 34/138 kv transformer at Roberts Station; Reconductor Bixby-LSII 138 kv line; Upgrade 138 kv breakers at Bixby Substation May 2006 $ 14.2 M AEP OH 3 Waverly-Sargents 138 kv Circuit AEP OH Install new 34/138 kv transformer and reconfigure 138 kv system in Waverly-Sargents 138 kv area June 2007 $ 26. M AEP OH 4 New 138 kv Switching Station AEP OH New 138 kv Switching Station for project L01_ AEP137 $ 2.44 M AEP OH Bellefonte-North Proctorville 138 kv loop AEP OH Construct approximately 0.9 miles of double-circuit 138 kv line to loop the Bellefonte-North Proctorville 138 kv circuit into the New 138 kv Switching Station for L01_AEP137 $ 1.22 M AEP OH 266 PJM 2006 Regional Transmission Expansion Plan

State RTEP Overviews Section.9.6 Interconnection Requests for Generation Powered by Renewable Fuel Sources PJM s RTEP process offers a structure that assures consistent, equal opportunity across fuel types while flexible enough to adapt to specific technical realities and market challenges. Presently, PJM s queues include interconnection requests in Ohio for plants fueled by wind and biomass, as summarized in TABLE.28 and shown on MAP.40. TABLE.28: Interconnection Requests by Renewable Fuel Type Queue Project Name MW MWC Status Schedule TO L01_AEP137 Bellefonte-N. Proctorville 138kV 16 16 UC 1/1/2008 AEP Biomass O21 Liberty 69kV 48 9.6 ACTIVE 9/30/2007 Dayton Wind P30 Bellefonte - N. Proctorville 138kV 20 20 ACTIVE 10/31/2007 AEP Biomass R48 Antwerp - Payne 69kV 48 9.6 ACTIVE 12/1/2008 AEP Wind R49 Haviland - Milan 138kV 10 30 ACTIVE 11/1/2009 AEP Wind R0 Liberty - Blue Jacket 69kV 48 9.6 ACTIVE 2/1/2009 Dayton Wind R1 Kings Creek - Woodstock 69kV 48 9.6 ACTIVE 12/1/2010 Dayton Wind Fuel Type R2 Mechanicsburg - Darby 300 60 ACTIVE 10/1/2008 Dayton Wind PJM 2006 Regional Transmission Expansion Plan 267

Section State RTEP Overviews Some renewable energy sources such as wind are recognized as intermittent resources. As such, their ability to generate power is directly and contemporaneously determined by their fuel. For example, wind turbines can generate electricity only when wind speed is within an established range. These characteristics present challenges with respect to real-time operational dispatch and specific capacity value. To address the latter issue, PJM recently established an entire set of rules unique to intermittent renewable resources that provide for the determination of credible capacity values robust enough to recognize the summer peaking requirements of the PJM system. MAP.40: Interconnection Requests for Generation Powered by Renewable Fuel Sources 268 PJM 2006 Regional Transmission Expansion Plan