AES Calculation Processes
As an Electric Distribution Company (EDC) operating within PJM, we provide daily allotment values to PJM for AES participating in the Choice market in Michigan for the purpose of settlement. Our role in settlement is providing PJM the hourly energy supply obligation for the sum of all Service Delivery Identifier (SDIs) served by each AES. On a daily basis, I&M submits to PJM an initial settlement of each Load Serving Entity (LSE’s) hourly energy supply obligation from the previous day (known as the "day-after settlement" or “Settlement A”) in the I&M zone. These initial values are largely comprised of estimates based upon historical SDI usage, historical load profiles, historical weather, and forecasted weather on the load day. Examples of each process as well as calculation of the yearly PJM weather normalization factor (WNF) are also included.