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FERC Issues NOPR Regarding Reliability Standard BAL-002-2

On May 19, 2016, in Docket No. RM16-7, FERC issued a notice of proposed rulemaking (“NOPR”) that would, among other things, approve Reliability Standard BAL-002-2, Disturbance Control Standard – Contingency Reserve for Recovery from a Balancing Contingency Event, submitted for approval by NERC on January 29, 2016.  The proposed reliability standard is designed to ensure that balancing authorities and reserve sharing groups are able to recover from system contingencies by deploying adequate reserves to return their Area Control Error (“ACE”) to defined values and by replacing the capacity and energy lost due to generation or transmission equipment outages. The NOPR proposes to direct NERC to modify Reliability Standard BAL-002-2 to address concerns related to the possible extension or delay of the periods for ACE recovery and contingency reserve restoration. It also proposes to direct NERC to address a reliability gap regarding megawatt losses above the most severe single contingency.

To view the NOPR, click here.