michael kormos, executive vice president for pjm. and again as or even discuss pjm is going through a major transition as we shift from coal to gas and we see significant coal resources retire on our system. as part of our responsibility to maintain bloodily and that is our primary responsibility. as been mentioned we run a three-year forward capacity auction would look to burger adequate commitment from resources to cover the expected load plus an adequate reserve. throughout the next three years we have, in fact, richard not only the minimum amount we needed, but, in fact, excess. with that we believe we will be able to maintain reliability. having said that i will not tell you it is not going to be without a challenge. our fuel mix is changing fairly radically with the retirement of coal, with a low of the ability of natural gas and with our increased use of demand response to meet our needs. coal will continue to play a big role in pjm. it was to be one-third of our capacity going forward. however the cushion we've enjoyed that g

we recently adopted a rule, for example, in pjm allowing them to require phaser measurement units for certain types of line so the rate regulation helps support those invests. >> you're talking about new deployment and this is, if we're talking about issue de jure and apparently we are because right now the 9/11 service in washington state is down in part of our state. so it is the issue de jure. so if it is, why not look at ways to further incent, not just on new deployment but on the resiliency of the grid? to me the security measure is smart grid technology and figuring out why we don't see a faster deployment? yes, some of the technologies created in washington state but then again, we've lived and breathed and benefited from an electricity grid with cheap hydropower for a long, long time. so it is more of an ethos for us. so my question is, isn't there a faster way? but unfortunately i have to go and vote. thank you, madam chair. >> i would like to hear the answer to that so please continue. thank you, senator cantwell. who would like to answer the senator's question? >> well, i'

i'm the vice president from pjm.we are going through a major transition and we see significant coal resources are tired honor system. it's part of our responsibility to maintain liability and as i mentioned we do run this and we look to procure this plus inadequate reserve. throughout the next three years we have secured not only the minimum amount that we need but also access. without we believe that we can maintain liability. having said that, i would not will not tell you it will not be without a challenge. it is treated fairly radically with the availability of natural gas and demand response to meet our needs. we need to play a big role in it will still be one third of our capacity going forward. but it is in fact dimension. coal is being replaced by demand response and it is a contractual obligation. demand response is typically not available and it is typically high-priced. one of the most highest priced resources honor system. so i would expect to see that significant volatility as we will have to rely on the

pjm. there being represented. there were sent this is a critical time. even they can be straight. there were down anywhere from 50750 megawatts of of 140 plus thousand that are responsible. another tool in the two walks. 10,000 megawatts of coal-fired power. you're going to be sure next year. so i just would like to know. and i will start with you, chairman, your view of this, pushing certain kinds of fuel or looking at basically the portfolio that utilities have? >> i do not think it is my job. it uses of generalized pride that allows different fuels to compete fairly. and so if there are preferences for certain kind of tools that was not a fair market. >> let me ask. we will go through in the second round. right now just explain as simply as possible this system, the way it works now. you have producers such as the p.m. for synergy. they are responsible for producing the energy that is needed that goes in through the transmission which is aware, the great. then you have an arty as such as pgm who is response ability to make sure it is reliable and affordable and dependable. him