Generation Interconnection System Impact Study Report For PJM Generation Interconnection Request Queue Position AA1-106 Grover II 34.5kV April 2016 Preface The intent of the System Impact Study 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. General IMG Development, LLC, the Interconnection Customer (IC), has proposed a natural gas generating facility located in Tioga County, PA. The installed facilities will have a total capability of 19.9 MW with 19.9 MW of this output being recognized by PJM as capacity. The proposed in-service date for this project is December 2016. This study does not imply a Pennsylvania Electric Company (Penelec) commitment to this in-service date. Attachment facilities and local upgrades (if required) along with terms and conditions to interconnect AA1-106 will be specified in a separate two party Interconnection Agreement (IA) between Penelec and the Interconnection Customer as this project is considered FERC non- jurisdictional per the PJM Open Access Transmission Tariff (OATT). From the transmission system perspective, no network impacts were identified as detailed below. Point of Interconnection AA1-106 will interconnect with the Penelec distribution system along a 34.5kV circuit from the Grover substation. © PJM Interconnection 2016. All rights reserved. 2 AA1-106 Grover II 34.5kV Cost Summary The AA1-106 project will be responsible for the following costs: Description Total Cost Transmission Owner facilities $ 585,100 Allocation for New System Upgrades $ 0 Contribution for Previously Identified Upgrades $ 373,200 Total Costs $ 958,300 © PJM Interconnection 2016. All rights reserved. 3 AA1-106 Grover II 34.5kV Transmission Owner Scope of Work Description Cost Tax (if Total Cost applicable) Grover SS. Install transfer trip & synchronizing $ 199,600 $ 62,000 $ 261,600 relaying on 34.5kV Canton line exit to accommodate generation interconnection. Canton SS. Install transfer trip & synchronizing $ 154,900 $ 48,100 $ 203,000 relaying on 34.5kV Grover line exit to accommodate generation interconnection. Region Line Tap on Canton 34.5 kV line AA1-106 $ 66,800 $ 20,200 $ 87,000 Point of Interconnection. Interconnection Metering $ 26,100 $ 7,900 $ 34,000 RTU programming for connection to the First $ 7,500 $ 2,500 $ 10,000 Energy SCADA and relay support for the generation installation. Engineering Oversight and Commissioning - FE $ 130,200 $ 39,300 $ 169,500 Construction (No-OTB) - FE-7 Total Attachment Cost Estimate $ 585,100 $ 180,000 $ 765,100 Schedule Based on the scope of the FE direct connection, it is expected to take approximately one (1.0) year from the signing of a Connection Service Agreement to complete the installation required for the AA1-106 Project. This includes a preliminary payment that compensates FE for the first three months of the engineering design work that is related to the construction of a new AA1-106 Interconnecting tap pole and the associated equipment of the Penelec 34.5 kV line to this site. It also assumes that the Interconnection Customer will provide the property for the attachment tap pole and all right-of-way, permits, easements, etc. that will be needed. A further assumption is 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 direct connection and network upgrades, and that FE will allow all distribution system outages when requested. The required network upgrades are estimated to take approximately 18 months to complete. Interconnection Customer Requirements In addition to the FE facilities, the Interconnection Customer will also be responsible for meeting all criteria as specified in the applicable sections of the "FE Requirements for Transmission Connected Facilities" document including: 1. The purchase and installation of the minimum required FE generation interconnection relaying and control facilities. This includes over/under voltage protection, over/under frequency protection, and zero sequence voltage protection relays. © PJM Interconnection 2016. All rights reserved. 4 AA1-106 Grover II 34.5kV 2. The installation of a Penelec provided 34.5 kV interconnection metering instrument transformer. FE will provide the ratio and accuracy specifications based on the customer load and generation levels. 3. The installation of a Penelec provided revenue class meter for each unit to measure the power delivered in compliance with the FE standards. 4. The purchase and installation of supervisory control and data acquisition (SCADA) equipment to provide information in a compatible format to the FE Transmission System Control Center. 5. The establishment of dedicated communication circuits for SCADA report to the FE Transmission System Control Center. 6. A compliance with the FE and PJM generator power factor and voltage control requirements. 7. The execution of a back-up service agreement with the electric distribution company to serve the customer load supplied from the AA1-106 generation project interconnection point when the units are out-of-service. This assumes the intent of the Interconnection Customer is to net the generation with the load. 8. The rough grade of the property for the AA1-106 Interconnection 34.5 kV tap pole and an access road for the delivery of equipment to this site. The above requirements are in addition to any metering and telecommunications required by PJM as specified in PJM Manuals M-01 and M-14D System Protection Analysis An analysis was conducted to assess the impact of the Grover II (AA1-106) Project on the system protection requirements in the area. The results of this review show that the following relay additions will be required: Proposed single line diagrams show the Interconnection Customer constructing a generation facility they call “Pine Hill” tapping Penelec’s 34.5kV Grover - Canton circuit at pole 3U998. The 34.5kV interconnection proposal will require the Interconnection Customer to meet applicable "Technical Requirements" as outlined in First Energy's document titled “Technical Requirements for the Interconnection of Customer-Owned Generation to the FirstEnergy Distribution System". (See link, shown at ‘Notes’, below) Protection requirements are included in the "Technical Requirements" document. Meeting the protection requirements for this application will include (but not be limited to): Voltage and synch check FirstEnergy designed, provided, & installed, at the Interconnection Customer’s expense, modifications to add 34.5kV system line protection, voltage and synchronism checking equipment on the following Penelec circuit breakers (CBs) and reclosers. This work may include adding line potential transformers and associated protective relays and/or relay programming at each location. • 34.5kV Canton CB at Grover substation © PJM Interconnection 2016. All rights reserved. 5 AA1-106 Grover II 34.5kV • 34.5kV Grover CB at Canton substation (dwgs show line PT/relaying-existence needs field verified) • 34.5kV Penelec's Liberty Recloser at Penelec pole # 2C787 Anti-islanding protection Also, meeting the protection requirements for anti-islanding protection will involve installation of a Direct Transfer Trip (DTT) system. The Interconnection Customer, at their expense, shall provide overall system equipment design, procurement and installation (except for the connection to Penelec equipment as covered below). The DTT system type shall be subject to FirstEnergy's approval. The DTT system shall include transmitter equipment & receiver equipment, and communication channel. The transmitter equipment, so as to receive 34.5kV CB/Recloser status at Penelec's Substations and at Penelec's 34.5kV Line Recloser location, will be located, by the Interconnection Customer, in local proximity to each of these Penelec devices. Hardware, which will provide CB/Recloser status to the DTT transmitters, will be designed, provided by, and installed by FirstEnergy, at the Interconnection Customer’s expense. The receiver equipment shall be