FERC Approves Reliability Standard BAL-002-2

On January 19, 2017, in Docket No. RM16-7-000, FERC issued an order accepting NERC’s January 29, 2016 petition requesting approval of proposed Reliability Standard BAL-002-2, Disturbance Control Standard—Contingency Reserve for Recovery from a Balancing Contingency Event.  Reliability Standard BAL-002-2 is designed to ensure that balancing authorities and reserve sharing groups balance resources and demand and return their Area Control Error (“ACE”) to defined values following a Reportable Balancing Contingency Event.  NERC expects the Reliability Standard to address outstanding directives from Order No. 693 regarding the use of demand side management as a resource for contingency reserve and the development of a continent-wide contingency reserve policy.