NERC Supp Petition

UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION

North American Electric Reliability
Corporation

)
)

Docket No. ____________

PETITION OF THE
NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION
FOR APPROVAL OF SIX NERC GLOSSARY DEFINITIONS AND REQUEST FOR
SHORTENED RESPONSE PERIOD AND EXPEDITED ACTION
Gerald W. Cauley
President and Chief Executive Officer
North American Electric Reliability
Corporation
3353 Peachtree Road, N.E.
Suite 600, North Tower
Atlanta, GA 30326
(404) 446-2560
(404) 446-2595 – facsimile

Charles A. Berardesco
Senior Vice President and General Counsel
Shamai Elstein
Senior Counsel
Andrew C. Wills
Associate Counsel
North American Electric Reliability
Corporation
1325 G Street, N.W., Suite 600
Washington, D.C. 20005
(202) 400-3000
(202) 644-8099 – facsimile
charles.berardesco@nerc.net
shamai.elstein@nerc.net
andrew.wills@nerc.net

Counsel for the North American Electric
Reliability Corporation

June 2, 2016

1

TABLE OF CONTENTS
I.

NOTICES AND COMMUNICATIONS ................................................................................ 5

II.

BACKGROUND .................................................................................................................... 5
A.

Regulatory Framework ..................................................................................................... 5

B.

NERC Reliability Standards Development Procedure ..................................................... 6

C.

Procedural History............................................................................................................ 7

III. JUSTIFICATION FOR APPROVAL..................................................................................... 9
A.

Reporting ACE ................................................................................................................. 9

B.

Components of Reporting ACE ..................................................................................... 11

IV. REQUEST FOR EXPEDITED ACTION ............................................................................. 12
V.

EFFECTIVE DATE .............................................................................................................. 13

VI. CONCLUSION ..................................................................................................................... 14
Exhibit A

Implementation Plan for BAL-005-1

2

UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION

North American Electric Reliability
Corporation

)
)

Docket No. ____________

PETITION OF THE
NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION
FOR APPROVAL OF SIX NERC GLOSSARY DEFINITIONS AND REQUEST FOR
SHORTENED RESPONSE PERIOD AND EXPEDITED ACTION
Pursuant to Section 215(d)(1) of the Federal Power Act (“FPA”) 1 and Section 39.5 of the
regulations of the Federal Energy Regulatory Commission (“FERC” or “Commission”), 2 the
North American Electric Reliability Corporation (“NERC”) 3 hereby submits for Commission
approval proposed definitions for the following terms in the NERC Glossary of Terms Used in
Reliability Standards (“NERC Glossary”):
•

“Reporting ACE;”

•

“Actual Frequency;”

•

“Actual Net Interchange;”

•

“Scheduled Net Interchange (NIS);”

•

“Interchange Meter Error (IME);” and

•

“Automatic Time Error Correction (ATEC)” (collectively, “Proposed Definitions”). 4
NERC initially filed the Proposed Definitions in Docket No. RM16-13-000, along with

1

16 U.S.C. § 824o (2012).
18 C.F.R. § 39.5 (2014). While Commission regulations only require NERC to file “Reliability Standards
or modifications” for Commission approval, NERC submits the proposed definitions described herein pursuant to
Section 39.5, as the proposed terms are referenced in several NERC Reliability Standards.
3
The Commission certified NERC as the electric reliability organization (“ERO”) in accordance with
Section 215 of the FPA on July 20, 2006. N. Am. Elec. Reliability Corp., 116 FERC ¶ 61,062 (2006).
4
Unless otherwise designated, all capitalized terms shall have the meaning set forth in the NERC Glossary,
available at http://www.nerc.com/files/Glossary_of_Terms.pdf.
2

3

proposed Reliability Standards BAL-005-1 and FAC-001-3 (“RM16-13 Petition”). 5 In the
RM16-13 Petition, NERC requested, consistent with the Commission’s directive in Order No.
810, 6 that the Proposed Definitions become effective upon the effective date of BAL-001-2,
which is July 1, 2016. 7 As the Commission may not have time to issue an order on the entire
RM16-13 Petition before July 1, 2016, NERC is filing this Petition for approval of the Proposed
Definitions to allow the Commission to act independently on the Proposed Definitions in a
separate docket and in an expedited timeframe. Contemporaneously with this Petition, NERC is
filing a Notice of Withdrawal in Docket No. RM16-13, requesting that Commission withdraw
the Proposed Definitions from consideration in that docket.
NERC requests that the Commission approve the Proposed Definitions (set forth in
Exhibit A8), retirement of the existing definition of ”Reporting ACE,” and the associated
Implementation Plan for the Proposed Definitions (set forth in Exhibit A) as just, reasonable, not
unduly discriminatory or preferential, and in the public interest. As required by Section 39.5(a)
of the Commission’s regulations, the following petition is a summary of the development of the
Proposed Definitions and the technical basis and purpose of the Proposed Definitions
(“Petition”). 9 Given the need for implementation of the Proposed Definitions as described in the

5

Petition of the North American Electric Reliability Corporation for Approval of Proposed Reliability
Standards BAL-005-1 and FAC-001-3, Docket No. RM16-13-000 (filed Apr. 20, 2016) (“RM16-13 Petition”).
6
Real Power Balancing Control Performance Reliability Standard, Order No. 810, 151 FERC ¶ 61,048 at P
43 (2015).
7
See RM16-13 Petition, Exhibit D at 5 (Apr. 20, 2016).
8
NERC understands that the Commission will consider approval of the Implementation Plan of BAL-005-1
along with Reliability Standard BAL-005-1. As such, NERC submits the Implementation Plan for BAL-005-1 for
illustration only and requests that the Commission only approve the implementation of the definitions discussed
within this petition.
9
The Commission specified in Order No. 672 certain general factors it would consider when assessing
whether a particular Reliability Standard is just and reasonable. See Rules Concerning Certification of the Electric
Reliability Organization; and Procedures for the Establishment, Approval, and Enforcement of Electric Reliability
Standards, Order No. 672, FERC Stats. & Regs. ¶ 31,204, at PP 262, 321-37, order on reh’g, Order No. 672-A,
FERC Stats. & Regs. ¶ 31,212 (2006).

4

Commission’s Order No. 810 before the effective date of Reliability Standard BAL-001-2,
NERC respectfully requests that the Commission shorten the comment period for this petition to
a period of fourteen (14) days and that the Commission consider this Petition on an expedited
timeframe.
I.

NOTICES AND COMMUNICATIONS
Notices and communications with respect to this filing may be addressed to: 10

Shamai Elstein*
Senior Counsel
Andrew C. Wills*
Associate Counsel
North American Electric Reliability Corporation
1325 G Street, N.W., Suite 600
Washington, D.C. 20005
(202) 400-3000
(202) 644-8099 – facsimile
shamai.elstein@nerc.net
andrew.wills@nerc.net
II.

Howard Gugel*
Director of Standards
North American Electric Reliability
Corporation
3353 Peachtree Road, N.E.
Suite 600, North Tower
Atlanta, GA 30326
(404) 446-2560
howard.gugel@nerc.net

BACKGROUND
A.

Regulatory Framework

By enacting the Energy Policy Act of 2005, 11 Congress entrusted the Commission with
the duties of approving and enforcing rules to ensure the reliability of the Nation’s Bulk-Power
System, and with the duties of certifying an Electric Reliability Organization (“ERO”) that
would be charged with developing and enforcing mandatory Reliability Standards, subject to
Commission approval. Section 215(b)(1) of the FPA states that all users, owners, and operators
of the Bulk-Power System in the United States will be subject to Commission-approved

10
11

Persons to be included on the Commission’s service list are identified by an asterisk.
16 U.S.C. § 824o (2012).

5

Reliability Standards. 12 Section 215(d)(5) of the FPA authorizes the Commission to order the
ERO to submit a new or modified Reliability Standard. 13 Section 39.5(a) of the Commission’s
regulations requires the ERO to file with the Commission for its approval each Reliability
Standard that the ERO proposes to become mandatory and enforceable in the United States, and
each modification to a Reliability Standard that the ERO proposes to be made effective. 14
The Commission is vested with the regulatory responsibility to approve Reliability
Standards that protect the reliability of the Bulk-Power System and to ensure that such
Reliability Standards are just, reasonable, not unduly discriminatory or preferential, and in the
public interest. The Commission also exercises oversight regarding proposals to retire
Reliability Standards. 15 Pursuant to Section 215(d)(2) of the FPA 16 and Section 39.5(c) of the
Commission’s regulations, “the Commission will give due weight to the technical expertise of
the Electric Reliability Organization” with respect to the content of a Reliability Standard. 17 As
NERC Glossary definitions are incorporated into NERC Reliability Standards by reference,
NERC files the definition pursuant to the FPA and associated Commission regulations outlined
above.
B.

NERC Reliability Standards Development Procedure

The Proposed Definitions were developed in an open and fair manner and in accordance
with the Commission-approved Reliability Standard development process. 18 NERC develops

12

Id. § 824o(b)(1).
Id. § 824o(d)(5).
14
18 C.F.R. § 39.5(a).
15
See e.g., NERC Standards Processes Manual, at Section 4.19 of the NERC Rules of Procedure, infra n. 19.
16
16 U.S.C. § 824o(d)(2).
17
18 C.F.R. § 39.5(c)(1).
18
Rules Concerning Certification of the Electric Reliability Organization; and Procedures for the
Establishment, Approval, and Enforcement of Electric Reliability Standards, Order No. 672 at P 334, FERC Stats. &
Regs. ¶ 31,204, order on reh’g, Order No. 672-A, FERC Stats. & Regs. ¶ 31,212 (2006) (“Further, in considering
whether a proposed Reliability Standard meets the legal standard of review, we will entertain comments about
13

6

Reliability Standards and associated NERC Glossary definitions in accordance with Section 300
(Reliability Standards Development) and Appendix 3D (NERC Standard Processes Manual) of
the Commission approved NERC Rules of Procedure. 19
In its order certifying NERC as the Commission’s ERO, the Commission found that
NERC’s proposed rules provide for reasonable notice and opportunity for public comment, due
process, openness, and a balance of interests in developing Reliability Standards, 20 and thus
satisfy certain of the criteria for approving Reliability Standards. 21 The development process is
open to any person or entity with a legitimate interest in the reliability of the Bulk-Power
System. NERC considers the comments of all stakeholders, and stakeholders must approve, and
the NERC Board of Trustees must adopt a Reliability Standard or associated NERC Glossary
definition before NERC submits the Reliability Standard to the Commission for approval.
C.

Procedural History

As discussed in the RM16-13 Petition, NERC began development of Reliability
Standards BAL-005-1 and FAC-001-3 and several NERC Glossary definitions in Project 201014.2.1 in late 2014. Prior to the initial posting for these standards and definitions, the
Commission issued Order No. 810 approving Reliability Standard BAL-001-2 and, among
others, the NERC Glossary definition for “Reporting ACE.” 22 In Order No. 810, the

whether the ERO implemented its Commission-approved Reliability Standard development process for the
development of the particular proposed Reliability Standard in a proper manner, especially whether the process was
open and fair. However, we caution that we will not be sympathetic to arguments by interested parties that choose,
for whatever reason, not to participate in the ERO’s Reliability Standard development process if it is conducted in
good faith in accordance with the procedures approved by FERC.”).
19
The NERC Rules of Procedure are available at http://www.nerc.com/AboutNERC/Pages/Rules-ofProcedure.aspx. The NERC Standard Processes Manual is available at
http://www.nerc.com/comm/SC/Documents/Appendix_3A_StandardsProcessesManual.pdf.
20
116 FERC ¶ 61,062 at P 250.
21
Order No. 672, supra n. 18, at PP 268, 270.
22
Real Power Balancing Control Performance Reliability Standard, Order No. 810, 151 FERC ¶ 61,048
(2015).

7

Commission also directed NERC to submit a revised definition of Reporting ACE to include “the
‘Lmax’ upper payback limit and the bounds of that upper payback limit” prior to the
implementation of BAL-001-2. 23 Pursuant to its associated implementation plan, Reliability
Standard BAL-001-2 and the definition of “Reporting ACE” will go into effect on July 1, 2016.
As the term “Reporting ACE” is used in proposed Reliability Standard BAL-005-1, the
standard drafting team for BAL-005-1 developed a revised definition for “Reporting ACE” and
five new definitions for associated components of Reporting ACE to address the Commission’s
concerns and to satisfy the abovementioned Order No. 810 directive. NERC stakeholders
approved proposed Reliability Standard BAL-005-1 and the associated NERC Glossary
definitions after two comment and ballot periods, with a final ballot that ended on February 8,
2016. The NERC Board of Trustees approved the proposed standard and associated definitions
on February 11, 2016. On April 20, 2016, NERC filed the RM16-13 Petition, seeking approval
of proposed Reliability Standards BAL-005-1 and FAC-001-3, eight new and revised NERC
Glossary definitions (including the Proposed Definitions), and retirement of Reliability Standard
BAL-006-2.
In the RM16-13 Petition, NERC requested Commission approval of revised
NERC Glossary definitions for “Reporting ACE” and each of the five components of
Reporting ACE, including “Actual Frequency,” “Actual Net Interchange (NIA),”
“Scheduled Net Interchange (NIS),” “Interchange Meter Error (IME),” and “Automatic
Time Error Correction (ATEC).” Because the currently effective definition of Reporting
ACE includes several defined terms within the definition itself, NERC noted in the
Petition that the proposal to separate the five elements of Reporting ACE from the

23

Id. at P 43.

8

definition itself would “reduc[e] potential confusion associated with definitions
embedded within a term.” 24 Finally, NERC explained in the Petition that the revised
definitions, taken together, would satisfy an outstanding Commission directive requiring
NERC to “revise the definition of Reporting ACE to include the ‘Lmax’ upper payback
limit and the bounds of that upper payback limit prior to the effective date of Reliability
Standard BAL-001-1 [sic].” 25 As explained in the Implementation Plan for proposed
Reliability Standard BAL-005-1, NERC requested approval of the Proposed Definitions
effective immediately after the effective date of BAL-001-2. 26
III.

JUSTIFICATION FOR APPROVAL
The following is a description of each of the Proposed Definitions, as initially

provided in the Docket RM16-13 Petition.
A.

Reporting ACE

Reporting ACE: The scan rate values of a Balancing Authority Area’s (BAA) Area
Control Error (ACE) measured in MW includes the difference between the Balancing
Authority Area’s Actual Net Interchange and its Scheduled Net Interchange, plus its
Frequency Bias Setting obligation, plus correction for any known meter error. In the
Western Interconnection, Reporting ACE includes Automatic Time Error Correction
(ATEC).
Reporting ACE is calculated as follows:
Reporting ACE = (NIA − NIS) − 10B (FA − FS) – IME
Reporting ACE is calculated in the Western Interconnection as follows:
Reporting ACE = (NIA − NIS) − 10B (FA − FS) – IME + IATEC
Where:
• NIA =
Actual Net Interchange.
• NIS
=
Scheduled Net Interchange.
• B
=
Frequency Bias Setting.
=
Actual Frequency.
• FA
• FS
=
Scheduled Frequency.
• IME
=
Interchange Meter Error.
24
25
26

See RM16-13 Petition, p. 33.
Id.
See RM16-13 Petition, Exhibit D at 5.

9

•

IATEC =

Automatic Time Error Correction.

All NERC Interconnections operate using the principles of Tie Line Bias (TLB) Control
and require the use of an ACE equation similar to the Reporting ACE defined above. Any
modification(s) to this specified Reporting ACE equation that is(are) implemented for all
BAAs on an Interconnection and is(are) consistent with the following four principles of
Tie Line Bias control will provide a valid alternative to this Reporting ACE equation:
1. All portions of the Interconnection are included in exactly one BAA so that the
sum of all BAAs’ generation, load, and loss is the same as total Interconnection
generation, load, and loss;
2. The algebraic sum of all BAAs’ Scheduled Net Interchange is equal to zero at all
times and the sum of all BAAs’ Actual Net Interchange values is equal to zero at
all times;
3. The use of a common Scheduled Frequency FS for all BAAs at all times; and,
4. Excludes metering or computational errors. (The inclusion and use of the IME term
corrects for known metering or computational errors.)
The currently effective definition of Reporting ACE defines several components used to
calculate Reporting ACE. The revised, proposed definition of Reporting ACE is clearer because
it only includes the Reporting ACE calculation. As described below, each of the components
used to calculate Reporting ACE have been separated from the definition of Reporting ACE to
avoid confusion. Additionally, the revised calculation for Reporting ACE set forth above
incorporates ATEC for entities in the Western Interconnection, which, as set forth below,
requires that “[t]he absolute value of IATEC shall not exceed Lmax.” Accordingly, the proposed
definition of Reporting ACE addresses the Commission’s directive in Paragraph 43 of Order No.
810 to “revise the definition of Reporting ACE to include the ‘Lmax’ upper payback limit and
the bounds of that upper payback limit prior to the effective date of Reliability Standard BAL001-1.” 27

27

Real Power Balancing Control Performance Reliability Standard, Order No. 810, 151 FERC ¶ 61,048 at P
43 (2015) (explaining that the Lmax upper payback limit and the bounds of that limit were necessary for the
Western Interconnection).

10

B.

Components of Reporting ACE

Actual Frequency (FA): The Interconnection frequency measured in Hertz (Hz).
Actual Net Interchange (NIA): The algebraic sum of actual megawatt transfers across all
Tie Lines, including Pseudo‐Ties, to and from all Adjacent Balancing Authority areas
within the same Interconnection. Actual megawatt transfers on asynchronous DC tie lines
that are directly connected to another Interconnection are excluded from Actual Net
Interchange.
Scheduled Net Interchange (NIS): The algebraic sum of all scheduled megawatt
transfers, including Dynamic Schedules, to and from all Adjacent Balancing Authority
areas within the same Interconnection, including the effect of scheduled ramps.
Scheduled megawatt transfers on asynchronous DC tie lines directly connected to another
Interconnection are excluded from Scheduled Net Interchange.

Interchange Meter Error (IME): A term, normally zero, used in the Reporting ACE
calculation to compensate for data or equipment errors affecting any other components of
the Reporting ACE calculation.
Automatic Time Error Correction (ATEC): The addition of a component to the ACE
equation for the Western Interconnection that modifies the control point for the purpose
of continuously paying back Primary Inadvertent Interchange to correct accumulated time
error. Automatic Time Error Correction is only applicable in the Western
Interconnection.
I𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨 =

𝒐𝒐𝒐𝒐⁄𝒐𝒐𝒐𝒐𝒐𝒐 𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑

PII𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂
(𝟏𝟏−𝒀𝒀)∗𝑯𝑯

when operating in Automatic Time Error Correction Mode.

The absolute value of IATEC shall not exceed Lmax .
IATEC shall be zero when operating in any other AGC mode.
•
•
•

•
•
•
•
•

Lmax is the maximum value allowed for IATEC set by each BA between 0.2*|Bi|
and L10, 0.2*|Bi|≤ Lmax ≤ L10 .
L10 = 1.65 ∗ ε10 �(−10Bi )(−10BS ) .
10 is a constant derived from the targeted frequency bound. It is the targeted
root-mean-square (RMS) value of ten-minute average frequency error based on
frequency performance over a given year. The bound, 1
0, is the same for every
Balancing Authority Area within an Interconnection.
Y = Bi / BS.
H = Number of hours used to payback primary inadvertent interchange energy.
The value of H is set to 3.
Bi = Frequency Bias Setting for the Balancing Authority Area (MW / 0.1 Hz).
BS = Sum of the minimum Frequency Bias Settings for the Interconnection (MW
/ 0.1 Hz).
Primary Inadvertent Interchange (PIIhourly) is (1-Y) * (IIactual - Bi * ΔTE/6)
11

•
•
•
•
•

IIactual is the hourly Inadvertent Interchange for the last hour. ΔTE is the hourly
change in system Time Error as distributed by the Interconnection time
monitor,where:
ΔTE = TEend hour – TEbegin hour – TDadj – (t)*(TEoffset)
TDadj is the Reliability Coordinator adjustment for differences with
Interconnection time monitor control center clocks.
t is the number of minutes of manual Time Error Correction that occurred during
the hour.
TEoffset is 0.000 or +0.020 or -0.020.
PIIaccum is the Balancing Authority Area’s accumulated PIIhourly in MWh. An OnPeak and Off-Peak accumulation accounting is required,
where:
𝒐𝒐𝒐𝒐⁄𝒐𝒐𝒐𝒐𝒐𝒐𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑

PII𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂

𝒐𝒐𝒐𝒐⁄𝒐𝒐𝒐𝒐𝒐𝒐𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑

= 𝒍𝒍𝒍𝒍𝒍𝒍𝒍𝒍 𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒅𝒅′ 𝒔𝒔 PII𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂

+ PII𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉

As mentioned above, the components of Reporting ACE have been separated from the
definition of Reporting ACE. This separation will improve reliability by reducing potential
confusion associated with definitions embedded within a term. The proposed definition of
ATEC also improves the current definition by addressing the Commission’s directive in Order
No. 810 for NERC to “revise the definition of Reporting ACE to include the ‘Lmax’ upper
payback limit and the bounds of that upper payback limit prior to the effective date of Reliability
Standard BAL-001-1.” 28 The proposed definition of ATEC, which is incorporated into the
proposed definition of Reporting ACE and is only applicable in the Western Interconnection,
states that “[t]he absolute value of IATEC shall not exceed Lmax.”
IV.

REQUEST FOR EXPEDITED ACTION
As explained above, in Order No. 810, the Commission directed that the revised

definition of Reporting ACE become effective prior to July 1, 2016, the implementation of
Reliability Standard BAL-001-2. 29 To that end, NERC respectfully requests that the

28

Real Power Balancing Control Performance Reliability Standard, Order No. 810, 151 FERC ¶ 61,048 at P
43 (2015) (explaining that the Lmax upper payback limit and the bounds of that limit were necessary for the
Western Interconnection).
29
See, RM16-13 Petition, Exhibit D at 5.

12

Commission shorten the comment period for this Petition to a period of fourteen (14) days and
consider this Petition on an expedited timeframe. Accelerated action on the Proposed
Definitions will ensure that the Proposed Definitions go into before the implementation of BAL001-2, as directed by the Commission in Order No. 810.
V.

EFFECTIVE DATE
NERC respectfully requests that the Commission approve the Proposed Definitions as

effective as described in the Implementation Plan for BAL-005-1, attached in Exhibit A of this
Petition. As explained in the Implementation Plan, the proposed effective date for the definitions
of “Reporting ACE,” “Actual Frequency,” “Actual Net Interchange (NIA),” “Scheduled Net
Interchange (NIS),” “Interchange Meter Error (IME),” and “Automatic Time Error Correction
(ATEC)” is “immediately after the effective date of BAL-001-2.” The proposed effective date
ensures that the definition of “Reporting ACE” submitted to the Commission in Docket RM1410-1 never becomes effective.

13

VI.

CONCLUSION
For the reasons set forth above, NERC respectfully requests that the Commission approve

(i) the Proposed Definitions, (ii) retirement of the currently effective definition of the term
“Reporting ACE,” and (iii) the associated implementation of the Proposed Definitions as just,
reasonable, not unduly discriminatory or preferential, and in the public interest.
Respectfully submitted,
/s/ Andrew C. Wills
Shamai Elstein
Senior Counsel
Andrew C. Wills
Associate Counsel
North American Electric Reliability
Corporation
1325 G Street, N.W., Suite 600
Washington, D.C. 20005
(202) 400-3000
(202) 644-8099 – facsimile
shamai.elstein@nerc.net
andrew.wills@nerc.net
Counsel for the North American Electric
Reliability Corporation
Date: June 2, 2016

14

Exhibit A
Implementation Plan for Proposed BAL-005-1

Implementation Plan
Project 2010-14.2.1 Balancing Authority Reliability-based Controls
Reliability Standard BAL-005-1
R equested Approval
•

BAL-005-1 – Balancing Authority Controls

Requested Retirement
•

BAL-005-0.2b – Automatic Generation Control

•

BAL-006-2 – Inadvertent Interchange - Requirement R3

Prerequisite Approval
•

FAC-001-3 – Facility Interconnection Requirements

Revisions to Glossary Terms
The following definitions shall become effective when BAL-005-1 becomes effective:
Actual Frequency (F A ): The Interconnection frequency measured in Hertz (Hz).
Actual Net Interchange (NI A ): The algebraic sum of actual megawatt transfers
across all Tie Lines, including Pseudo‐Ties, to and from all Adjacent Balancing Authority
areas within the same Interconnection. Actual megawatt transfers on asynchronous DC
tie lines that are directly connected to another Interconnection are excluded from Actual
Net Interchange.
Scheduled Net Interchange (NI S ): The algebraic sum of all scheduled megawatt
transfers, including Dynamic Schedules, to and from all Adjacent Balancing Authority
areas within the same Interconnection, including the effect of scheduled ramps.
Scheduled megawatt transfers on asynchronous DC tie lines directly connected to
another Interconnection are excluded from Scheduled Net Interchange.

Interchange Meter Error (I ME ): A term used in the Reporting ACE calculation to
compensate for data or equipment errors affecting any other components of the
Reporting ACE calculation.
Automatic Time Error Correction (I ATEC ): The addition of a component to the ACE
equation for the Western Interconnection that modifies the control point for the
purpose of continuously paying back Primary Inadvertent Interchange to correct
accumulated time error. Automatic Time Error Correction is only applicable in the
Western Interconnection.
I𝑨𝑨𝑨𝑨𝑨𝑨𝑨𝑨 =

𝒐𝒐𝒐𝒐⁄𝒐𝒐𝒐𝒐𝒐𝒐 𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑

PII𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂
(𝟏𝟏−𝒀𝒀)∗𝑯𝑯

when operating in Automatic Time Error Correction Mode.

The absolute value of I ATEC shall not exceed L max .
I ATEC shall be zero when operating in any other AGC mode.
• L max is the maximum value allowed for I ATEC set by each BA between 0.2*|B i | and
L 10 , 0.2*|B i |≤ L max ≤ L 10 .
•

•

•
•
•
•
•
•

•
•
•
•

L 10 = 1.65 ∗ ε10 �(−10Bi )(−10BS ) .

ε10 is a constant derived from the targeted frequency bound. It is the targeted rootmean-square (RMS) value of ten-minute average frequency error based on
frequency performance over a given year. The bound, ε 10 , is the same for every
Balancing Authority Area within an Interconnection.
Y = Bi / BS.
H = Number of hours used to payback primary inadvertent interchange energy. The
value of H is set to 3.
B i = Frequency Bias Setting for the Balancing Authority Area (MW / 0.1 Hz).
B S = Sum of the minimum Frequency Bias Settings for the Interconnection (MW /
0.1 Hz).
Primary Inadvertent Interchange (PII hourly ) is (1-Y) * (II actual - B i * ΔTE/6)
II actual is the hourly Inadvertent Interchange for the last hour.
ΔTE is the hourly change in system Time Error as distributed by the Interconnection
time monitor,where: ΔTE = TE end hour – TE begin hour – TD adj – (t)*(TE offset )
TD adj is the Reliability Coordinator adjustment for differences with Interconnection
time monitor control center clocks.
t is the number of minutes of manual Time Error Correction that occurred during the
hour.
TE offset is 0.000 or +0.020 or -0.020.
PII accum is the Balancing Authority Area’s accumulated PII hourly in MWh. An On-Peak
and Off-Peak accumulation accounting is required,
where:

BAL-005-1 – Balancing Authority Control

2

𝒐𝒐𝒐𝒐⁄𝒐𝒐𝒐𝒐𝒐𝒐𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑

PII𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂

𝒐𝒐𝒐𝒐⁄𝒐𝒐𝒐𝒐𝒐𝒐𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑

= 𝒍𝒍𝒍𝒍𝒍𝒍𝒍𝒍 𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒑𝒅𝒅′ 𝒔𝒔 PII𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂𝒂

+ PII𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉𝒉

Reporting ACE: The scan rate values of a Balancing Authority Area’s (BAA) Area
Control Error (ACE) measured in MW includes the difference between the Balancing
Authority Area’s Actual Net Interchange and its Scheduled Net Interchange, plus its
Frequency Bias Setting obligation, plus correction for any known meter error. In the
Western Interconnection, Reporting ACE includes Automatic Time Error Correction
(ATEC).
Reporting ACE is calculated as follows:
Reporting ACE = (NI A − NI S ) − 10B (F A − F S ) – I ME
Reporting ACE is calculated in the Western Interconnection as follows:
Reporting ACE = (NI A − NI S ) − 10B (F A − F S ) – I ME + I ATEC
Where:
• NI A

=

Actual Net Interchange.

•

NI S

=

Scheduled Net Interchange.

•

B

=

Frequency Bias Setting.

•

FA

=

Actual Frequency.

•

FS

=

Scheduled Frequency.

•

I ME

=

Interchange Meter Error.

•

I ATEC

=

Automatic Time Error Correction.

All NERC Interconnections operate using the principles of Tie-line Bias (TLB)
Control and require the use of an ACE equation similar to the Reporting ACE
defined above. Any modification(s) to this specified Reporting ACE equation that
is(are) implemented for all BAAs on an Interconnection and is(are) consistent with
the following four principles of Tie Line Bias control will provide a valid alternative
to this Reporting ACE equation:
1. All portions of the Interconnection are included in exactly one BAA so that the
sum of all BAAs’ generation, load, and loss is the same as total Interconnection
generation, load, and loss;
2. The algebraic sum of all BAAs’ Scheduled Net Interchange is equal to zero at all
times and the sum of all BAAs’ Actual Net Interchange values is equal to zero at
all times;
3. The use of a common Scheduled Frequency F S for all BAAs at all times; and,

BAL-005-1 – Balancing Authority Control

3

4. Excludes metering or computational errors. (The inclusion and use of the I ME
term corrects for known metering or computational errors.)
Automatic Generation Control (AGC): A process designed and used to adjust a
Balancing Authority Areas’ Demand and resources to help maintain the Reporting ACE in
that of a Balancing Authority Area within the bounds required by applicable NERC
Reliability Standards.
Pseudo-Tie: A time-varying energy transfer that is updated in Real-time and included in the
Actual Net Interchange term (NIA) in the same manner as a Tie Line in the affected Balancing
Authorities’ Reporting ACE equation (or alternate control processes).
Balancing Authority: The responsible entity that integrates resource plans ahead of time,
maintains Demand and resource balance within a Balancing Authority Area, and supports
Interconnection frequency in real time.

Applicable Entities
•

Balancing Authority

Applicable Facilities
•

N/A

Background
Reliability Standard BAL-005-1 addresses Balancing Authority Reliability-based Controls and
establishes requirements for acquiring data necessary to calculate Reporting Area Control Error
(Reporting ACE). Reliability Standard BAL-005-1 (Balancing Authority Controls) and associated
Implementation Plan was developed in conjunction with FAC-001-3 to ensure that entities with
facilities and Load operating in an Interconnection are within a Balancing Authority Area’s
metered boundaries. This coordination will allow for the collection of data necessary to calculate
Reporting Area Control Error (Reporting ACE) to achieve the best results under BAL-005-1.
General Considerations

BAL-005-1 – Balancing Authority Control

4

To guarantee proper coordination as intended by the standard drafting team for Project 201014.2.1, FAC-001-3 will be implemented immediately after BAL-005-1 becomes effective as
reflected in the Implementation Plan for FAC-001-3, and BAL-006-2 Requirement R3 will be
retired concurrently with the effective date for BAL-005-1 . Finally, to ensure proper
coordination with BAL-001-2, approved by the Commission in Order No. 810 issued on April
16, 2015, the following definitions associated with BAL-005-1 will be implemented concurrently
with the effective date for BAL-001-2:
•

Reporting ACE

•

Actual Frequency

•

Actual Net Interchange

•

Scheduled Net Interchange

•

Interchange Meter Error

•

Automatic Time Error Correction

Effective Dates
Definitions
The definitions of the following terms shall become effective immediately after the
effective date of BAL-001-2 1:
•

Reporting ACE

•

Actual Frequency

•

Actual Net Interchange

•

Scheduled Net Interchange

•

Interchange Meter Error

•

Automatic Time Error Correction

BAL-005-1
Where approval by an applicable governmental authority is required, BAL-005-1 and
associated definitions, except the definitions enumerated in the section directly above,
shall become effective on the first day of the first calendar quarter that is twelve months
Because the definition of “Reporting ACE” associated with BAL-005-1 will become effective immediately after the
effective date of BAL-001-2, the definition of “Reporting ACE” that was approved by the Commission on April 16,
2015 in Order No. 810 (151 FERC ¶ 61,048) will never go into effect.

1

BAL-005-1 – Balancing Authority Control

5

after the effective date of the applicable governmental authorities order approving the
standard, or as otherwise provided for by the applicable governmental authority.
Where approval by an applicable governmental authority is not required, BAL-005-1 and
associated definitions, except the definitions enumerated in the section directly above,
shall become effective on the first day of the first calendar quarter that is twelve months
after the date the standard is adopted by the NERC Board of Trustees’, or as otherwise
provided for in that jurisdiction.
Retirements
BAL-005-0.2b (Automatic Generation Control) shall be retired immediately prior to the
Effective Date of BAL-005-1 (Balancing Authority Controls) in the particular jurisdiction in
which the revised standard is becoming effective.
BAL-006-2 (Inadvertent Interchange) Requirement R3 shall be retired immediately prior to the
Effective Date of BAL-005-1 (Balancing Authority Controls) in the particular jurisdiction in
which the revised standard is becoming effective.
The existing definitions of Automatic Generation Control, Pseudo Tie and Balancing Authority
shall be retired at midnight of the day immediately prior to the effective date of BAL-005-1, in
the jurisdiction in which the new standard is becoming effective.
The existing definitions of Reporting ACE, Actual Frequency, Actual Net Interchange,
Scheduled Net Interchange, Interchange Meter Error, and Automatic Time Error Correction
shall be retired immediately after the effective date of BAL-001-2. 2

Note that the definition of Reporting ACE that was approved by the Commission in Order No. 810, which will
replace the existing definition of Reporting ACE, will be retired immediately prior to the effective date for the
revised definition of Reporting ACE, as described above. As such, the definition of Reporting ACE approved by the
Commission in Order No. 810 will never go into effect.

2

BAL-005-1 – Balancing Authority Control

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