PJM Expects Adequate Power Supplies This Summer

VALLEY FORGE, PENNSYLVANNIA - PJM Interconnection expects to have sufficient generating capacity to meet consumers' forecasted peak usage this summer. PJM manages the electricity grid in all or parts of 13 states and the District of Columbia - from Illinois to New Jersey and from Pennsylvania to North Carolina.

PJM's forecasted 2005 summer peak usage is 131,330 megawatts of electricity. PJM expects to have 165,640 megawatts of generating capacity on line. The generation capacity available beyond the forecasted peak provides a reserve margin of 26 percent - well above the 15 percent reserve margin PJM requires for reliability. Reserve margin provides a "cushion" of generating capacity to meet unexpected high usage levels or equipment problems. A megawatt is enough electricity to power about 800 homes.

"The integration of additional transmission systems into PJM has allowed us to improve reliability and reduce costs for our customers in part through the increased diversity of load and generation," said Audrey A. Zibelman, executive vice president and chief operating officer of PJM.

The forecasted summer peak includes the estimated effects of 1,653 megawatts of interruptible demand and load management programs. Customers in these programs receive either a special rate or payments for stopping or reducing their use of electricity when requested by PJM in order to reduce demand on the grid.

The forecast assumes normal summer weather conditions. It is a standard "50-50" forecast, meaning there is a 50 percent chance that actual peak summer usage will be higher than the forecast and a 50 percent chance that it will be lower.