NERC Rel Standard (BAL-002-WECC-2)

WECC Standard BAL-002-WECC-2 — Contingency Reserve
A. Introduction

1. Title:

Contingency Reserve

2. Number: BAL-002-WECC-2
3. Purpose: To specify the quantity and types of Contingency Reserve required to
ensure reliability under normal and abnormal conditions.
4. Applicability:
4.1

Balancing Authority
4.1.1. The Balancing Authority is the responsible entity unless the Balancing
Authority is a member of a Reserve Sharing Group, in which case, the
Reserve Sharing Group becomes the responsible entity.

4.2

Reserve Sharing Group
4.2.1. The Reserve Sharing Group when comprised of a Source Balancing
Authority becomes the source Reserve Sharing Group.
4.2.2. The Reserve Sharing Group when comprised of a Sink Balancing
Authority becomes the sink Reserve Sharing Group.

5. Effective Date: On the first day of the third quarter following applicable regulatory
approval.
B. Requirements and Measures
R1. Each Balancing Authority and each Reserve Sharing Group shall maintain a
minimum amount of Contingency Reserve, except within the first sixty minutes
following an event requiring the activation of Contingency Reserve, that is: [Violation
Risk Factor: High] [Time Horizon: Real-time operations]
1.1 The greater of either:
•

The amount of Contingency Reserve equal to the loss of the most severe
single contingency;

•

The amount of Contingency Reserve equal to the sum of three percent of
hourly integrated Load plus three percent of hourly integrated generation.

1.2 Comprised of any combination of the reserve types specified below:
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WECC Standard BAL-002-WECC-2 — Contingency Reserve
•

Operating Reserve – Spinning

•

Operating Reserve - Supplemental

•

Interchange Transactions designated by the Source Balancing Authority as
Operating Reserve – Supplemental

•

Reserve held by other entities by agreement that is deliverable on Firm
Transmission Service

•

A resource, other than generation or load, that can provide energy or
reduce energy consumption

•

Load, including demand response resources, Demand-Side Management
resources, Direct Control Load Management, Interruptible Load or
Interruptible Demand, or any other Load made available for curtailment by
the Balancing Authority or the Reserve Sharing Group via contract or
agreement.

•

All other load, not identified above, once the Reliability Coordinator has
declared an energy emergency alert signifying that firm load interruption is
imminent or in progress.

1.3 Based on real-time hourly load and generating energy values averaged over
each Clock Hour (excluding Qualifying Facilities covered in 18 C.F.R.§
292.101, as addressed in FERC Order 464).
1.4 An amount of capacity from a resource that is deployable within ten minutes.
M1.

Each Balancing Authority and each Reserve Sharing Group will have documentation
demonstrating its Contingency Reserve was maintained, except within the first sixty
minutes following an event requiring the activation of Contingency Reserve.
Part 1.1
Each Balancing Authority and each Reserve Sharing Group will have dated
documentation that demonstrates its Contingency Reserve was maintained in
accordance with the amounts identified in Requirement R1, Part 1.1, except within
the first sixty minutes following an event requiring the activation of Contingency
Reserve.
Attachment A is a practical illustration showing how the generation amount may be
calculated under Requirement R1.
•

Where Dynamic Schedules are used as part of the generation amount
upon which Contingency Reserve is predicated, additional evidence of
compliance with Requirement R1, Part 1.1 may include, but is not limited
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WECC Standard BAL-002-WECC-2 — Contingency Reserve
to, documentation showing a reciprocal acknowledgement as to which
entity is carrying the reserves. This transfer may be all or some portion of
the physical generator and is not limited to the entire physical capability
of the generator.
•

Where Pseudo-Ties are used as part of the generation amount upon
which Contingency Reserve is predicated, additional evidence of
compliance with Requirement R1, Part 1.1, may include, but is not limited
to, documentation accounting for the transfers included in the PseudoTies.

Part 1.2
Each Balancing Authority and each Reserve Sharing Group will have dated
documentation that demonstrates compliance with Requirement R1, Part 1.2.
Evidence may include, but is not limited to, documentation that reserves were
comprised of the types listed in Requirement R1, Part 1.2 for purposes of meeting
the Contingency Reserve obligation of Requirement R1. Additionally, for purposes
of the last bullet of Requirement R1, Part 1.2, evidence of compliance may include,
but is not limited to, documentation that the reliability coordinator had issued an
energy emergency alert, indicating that firm Load interruption was imminent or was
in progress.
Part 1.3
Each Balancing Authority and each Reserve Sharing Group will have dated
documentation that demonstrates compliance with Requirement R1, Part 1.3.
Evidence of compliance with Requirement R1, Part 1.3 may include, but is not
limited to, documentation that Contingency Reserve amounts are based upon load
and generating data averaged over each Clock Hour and excludes Qualifying
Facilities covered in 18 C.F.R.§ 292.101, as addressed in FERC Order 464.
Part 1.4
Evidence of compliance with Requirement R1, Part 1.4 may include, but is not
limited to, documentation that the reserves maintained to comply with Requirement
R1, Part 1.4 are fully deployable within ten minutes.
R2.

Each Balancing Authority and each Reserve Sharing Group shall maintain at least
half of its minimum amount of Contingency Reserve identified in Requirement R1, as
Operating Reserve – Spinning that meets both of the following reserve
characteristics. [Violation Risk Factor: High] [Time Horizon: Real-time operations]
2.1

Reserve that is immediately and automatically responsive to frequency
deviations through the action of a governor or other control system;

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WECC Standard BAL-002-WECC-2 — Contingency Reserve
2.2

Reserve that is capable of fully responding within ten minutes.

M2.

Each Balancing Authority and each Reserve Sharing Group will have dated
documentation that demonstrates it maintained at least half of the Contingency
Reserve identified in Requirement R1 as Operating Reserve – Spinning, averaged
over each Clock Hour, that met both of the reserve characteristics identified in
Requirement R2, Part 2.1 and Requirement R2, Part 2.2.

R3.

Each Sink Balancing Authority and each sink Reserve Sharing Group shall maintain
an amount of Operating Reserve, in addition to the minimum Contingency Reserve
in Requirement R1, equal to the amount of Operating Reserve–Supplemental for
any Interchange Transaction designated as part of the Source Balancing Authority’s
Operating Reserve–Supplemental or source Reserve Sharing Group’s Operating
Reserve–Supplemental, except within the first sixty minutes following an event
requiring the activation of Contingency Reserve. [Violation Risk Factor: High] [Time
Horizon: Real-time operations]

M3.

Each Sink Balancing Authority and each sink Reserve Sharing Group will have
dated documentation demonstrating it maintained an amount of Operating Reserve,
in addition to the Contingency Reserve identified in Requirement R1, equal to the
amount of Operating Reserve–Supplemental for any Interchange Transaction
designated as part of the Source Balancing Authority’s Operating Reserve–
Supplemental or source Reserve Sharing Group’s Operating Reserve–
Supplemental, for the entire period of the transaction, except within the first sixty
minutes following an event requiring the activation of Contingency Reserves, in
accordance with Requirement 3.

R4.

Each Source Balancing Authority and each source Reserve Sharing Group shall
maintain an amount of Operating Reserve, in addition to the minimum Contingency
Reserve amounts identified in Requirement R1, equal to the amount and type of
Operating Reserves for any Operating Reserve transactions for which it is the
Source Balancing Authority or source Reserve Sharing Group. [Violation Risk
Factor: High] [Time Horizon: Real-time operations]

M4.

Each Source Balancing Authority and each source Reserve Sharing Group will have
dated documentation that demonstrates it maintained an amount of additional
Operating Reserves identified in Requirement R1, greater than or equal to the
amount and type of that identified in Requirement 4, for the entire period of the
transaction.

C. Compliance
1. Compliance Monitoring Process
1.1

Compliance Enforcement Authority
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WECC Standard BAL-002-WECC-2 — Contingency Reserve

For entities that do not work for the Regional Entity, the Regional Entity shall
serve as the Compliance Enforcement Authority.
For Reliability Coordinators and other functional entities that work for their
Regional Entity, the ERO or a Regional Entity approved by the ERO and FERC
or other applicable governmental authorities shall serve as the Compliance
Enforcement Authority.
For responsible entities that are also Regional Entities, the ERO or a Regional
Entity approved by the ERO and FERC or other applicable governmental
authorities shall serve as the Compliance Enforcement Authority.
1.2

Compliance Monitoring and Assessment Processes:
Compliance Audit
Self-Certification
Spot Checking
Compliance Investigation
Self-Reporting
Complaint

1.3

Evidence Retention
The following evidence retention periods identify the period of time an entity is
required to retain specific evidence to demonstrate compliance. For instances
where the evidence retention period specified below is shorter than the time
since the last audit, the Compliance Enforcement Authority may ask an entity to
provide other evidence to show that it was compliant for the full time period
since the last audit.
Each Balancing Authority and each Reserve Sharing Group shall keep
evidence for Requirement R1 through R4 for three years plus calendar current.

1.4.

Additional Compliance Information
1.4.1. This Standard shall apply to each Balancing Authority and each Reserve
Sharing Group that has registered with WECC as provided in Part 1.4.2
of Section C.
Each Balancing Authority identified in the registration with WECC as
provided in Part 1.4.2 of Section C shall be responsible for compliance
with this Standard through its participation in the Reserve Sharing Group
and not on an individual basis.
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WECC Standard BAL-002-WECC-2 — Contingency Reserve

1.4.2. A Reserve Sharing Group may register as the Responsible Entity for
purposes of compliance with this Standard by providing written notice to
the WECC: 1) indicating that the Reserve Sharing Group is registering
as the Responsible Entity for purposes of compliance with this Standard,
2) identifying each Balancing Authority that is a member of the Reserve
Sharing Group, and 3) identifying the person or organization that will
serve as agent on behalf of the Reserve Sharing Group for purposes of
communications and data submissions related to or required by this
Standard.
1.4.3. If an agent properly designated in accordance with Part 1.4.2 of Section
C identifies individual Balancing Authorities within the Reserve Sharing
Group responsible for noncompliance at the time of data submission,
together with the percentage of responsibility attributable to each
identified Balancing Authority, then, except as may otherwise be finally
determined through a duly conducted review or appeal of the initial
finding of noncompliance: 1) any penalties assessed for noncompliance
by the Reserve Sharing Group shall be allocated to the individual
Balancing Authorities identified in the applicable data submission in
proportion to their respective percentages of responsibility as specified in
the data submission, 2) each Balancing Authority shall be solely
responsible for all penalties allocated to it according to its percentage of
responsibility as provided in subsection 1) of this Part 1.4.3 of Section C,
and 3) neither the Reserve Sharing Group nor any member of the
Reserve Sharing Group shall be responsible for any portion of a penalty
assessed against another member of the Reserve Sharing Group in
accordance with subsection 1) of this Part 1.4.3 of Section C (even if the
member of Reserve Sharing Group against which the penalty is
assessed is not subject to or otherwise fails to pay its allocated share of
the penalty).
1.4.4. If an agent properly designated in accordance with Part 1.4.2 of Section
C fails to identify individual Balancing Authorities within the Reserve
Sharing Group responsible for noncompliance at the time of data
submission or fails to specify percentages of responsibility attributable to
each identified Balancing Authority, any penalties for noncompliance
shall be assessed against the agent on behalf of the Reserve Sharing
Group, and it shall be the responsibility of the members of the Reserve
Sharing Group to allocate responsibility for such noncompliance.
1.4.5. Any Balancing Authority that is a member of a Reserve Sharing Group
that has failed to register as provided in Part 1.4.2 of Section C shall be
subject to this Standard on an individual basis.

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WECC Standard BAL-002-WECC-2 — Contingency Reserve
Table of Compliance Elements

R

Time
Horizon

VRF

Violation Severity Levels
Lower VSL

Moderate VSL

High VSL

Severe VSL

R1

Real-time
Operations

High

The Balancing
Authority or the
Reserve Sharing
Group that incurs
one Clock Hour,
during a
calendar month,
in which
Contingency
Reserve is less
than 100% but
greater than or
equal to 90% of
the required
Contingency
Reserve amount,
with the
characteristics
specified in
Requirement R1.

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
Clock Hour,
during a
calendar month,
in which
Contingency
Reserve is less
than 90% but
greater than or
equal to 80% of
the required
Contingency
Reserve
amount, with the
characteristics
specified in
Requirement
R1.

The Balancing
Authority or the
Reserve Sharing
Group that
incurs one Clock
Hour, during a
calendar month,
in which
Contingency
Reserve is less
than 80% but
greater than or
equal to 70% of
the required
Contingency
Reserve
amount, with the
characteristics
specified in
Requirement
R1.

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
Clock Hour,
during a
calendar month,
in which
Contingency
Reserve is less
than 70% of the
required
Contingency
Reserve
amount, with
the
characteristics
specified in
Requirement
R1.

R2

Real-time
Operations

High

The Balancing
Authority or the
Reserve Sharing
Group that
incurs one Clock
Hour, during a
calendar month,
in which
Contingency
Reserve
Operating
Reserve Spinning is less
than 100% but
greater than or
equal to 90% of
the required

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
Clock Hour,
during a
calendar month,
in which
Contingency
Reserve
Operating
Reserve Spinning is less
than 90% but
greater than or
equal to 80% of

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
Clock Hour,
during a
calendar
month, in which
Contingency
Reserve
Operating
Reserve Spinning is less
than 80% but
greater than or
equal to 70% of

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
Clock Hour,
during a
calendar month,
in which
Contingency
Reserve
Operating
Reserve Spinning is less
than 70% of the
required
Operating
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WECC Standard BAL-002-WECC-2 — Contingency Reserve
R

Time
Horizon

VRF

Violation Severity Levels
Lower VSL
Operating
Reserve–
Spinning amount
specified in
Requirement R2,
and both
characteristics
were met.

Moderate VSL
the required
Operating
Reserve–
Spinning
amount
specified in
Requirement
R2, and both
characteristics
were met.

High VSL

Severe VSL

the required
Operating
Reserve–
Spinning
amount
specified in
Requirement
R2, and both
characteristics
were met.

Reserve–
Spinning
amount
specified in
Requirement
R2, and both
characteristics
were met.

R3

Real-time
Operations

High

The Balancing
The Balancing
Authority or the
Authority or the
Reserve Sharing Reserve
Group that
Sharing Group
incurs one hour, that incurs one
during a
hour, during a
calendar month, calendar month,
in which
in which
Contingency
Contingency
Reserve is less
Reserve is less
than 100% but
than 90% but
greater than or
greater than or
equal to 90% of
equal to 80% of
the required
the required
Operating
Operating
Reserve amount Reserve
specified in
amount
Requirement R3. specified in
Requirement
R3.

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
hour, during a
calendar
month, in which
Contingency
Reserve is less
than 80% but
greater than or
equal to 70% of
the required
Operating
Reserve
amount
specified in
Requirement
R3.

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
hour, during a
calendar month,
in which
Contingency
Reserve is less
than 70% of the
required
Operating
Reserve
amount
specified in
Requirement
R3.

R4

Real-time
Operations

High

The Balancing
Authority or the
Reserve Sharing
Group that
incurs one hour,
during a
calendar month,
in which
Contingency
Reserve
Operating

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
hour, during a
calendar
month, in which
Contingency
Reserve
Operating

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
hour, during a
calendar month,
in which
Contingency
Reserve
Operating

The Balancing
Authority or the
Reserve
Sharing Group
that incurs one
hour, during a
calendar month,
in which
Contingency
Reserve
Operating

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WECC Standard BAL-002-WECC-2 — Contingency Reserve
R

Time
Horizon

VRF

Violation Severity Levels
Lower VSL

Moderate VSL

High VSL

Severe VSL

Reserve is less
than 100% but
greater than or
equal to 90% of
the required
Operating
Reserve amount
specified in
Requirement R4.

Reserve is less
than 90% but
greater than or
equal to 80% of
the required
Operating
Reserve
amount
specified in
Requirement
R4.

Reserve is less
than 80% but
greater than or
equal to 70% of
the required
Operating
Reserve
amount
specified in
Requirement
R4.

Reserve is less
than 70% of the
required
Operating
Reserve
amount
specified in
Requirement
R4.

D. Regional Variances
None.
E. Interpretations
None.
F. Associated Documents
None.

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WECC Standard BAL-002-WECC-2 — Contingency Reserve
Attachment A
Attachment A is illustrative only; it is not a requirement. Requirement R1 calls for an amount
of Contingency Reserve to be maintained, predicated on an amount of generation and load
required in Requirement R1, Part 1.1., specifically:
“1.1 The greater of either:
•
•

The amount of Contingency Reserve equal to the loss of the most
severe single contingency;
The amount of Contingency Reserve equal to the sum of three
percent of hourly integrated Load plus three percent of hourly
integrated generation.”

Attachment A illustrates one possible way to account for and calculate the amount of
generation upon which the Contingency Reserve amount is predicated.
Below is a practical illustration showing how the generation amount may be calculated under
Requirement R1 for Balancing Authorities (BA) and Reserve Sharing Groups (RSG).
BA1 / RSG 1

Generation

Generator 1
Generator 2
Generator 3 (Pseudo-Tied out to BA2)
Generator 4 QF (has backup contract)
Generator 5 QF in EMS
Generator 6

300 MWs online
200 MWs online
100 MWs online
10 MWs online
10 MWs online
0 MWs online

Part of Generator
Yes
Yes
No
No
Yes
Yes

Dynamic Schedule to BA2 from BA1 1

(50 MWs)

Generation
BA generation (EMS)
Generation to use Under BAL-002-WECC-1

620 MWs
(The sum of gen 1-6)
510 MWs
(The sum of gen 1, 2, and 5)
460 MWs** (The sum of gen 1, 2 and 5
minus Dynamic Schedule)

** Assumes BA1 and BA2 agree on Dynamic Schedule treatment. If no agreement, BA1
would maintain reserves based on 510 MWs Generation.

BA2 / RSG2
Generator 11
1

Generation

Part of Generator

100 MWs

Yes

Note: This Dynamic Schedule is not the same as the Generator 3 Pseudo-Tie.

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WECC Standard BAL-002-WECC-2 — Contingency Reserve
Generator 12
Generator 3 (Pseudo-Tied in from BA1)
Dynamic Schedule from BA1 to BA2
Generation
BA generation (EMS)
Generation to use Under BAL-002-WECC-1

100 MWs
100 MWs

Yes
Yes

50 MWs

Yes

300 MWs
(The sum of gen 11, 12 and 3.)
300 MWs
(The sum of gen 11, 12 and 3)
350 MWs** (The sum of gen 11, 12 and 3
plus Dynamic Schedule)

** Assumes BA1 and BA2 agree on Dynamic Schedule treatment. If no agreement, BA1
would have to maintain reserves based on 510MWs Generation and BA2 would determine its
generation to be 300 MWs.

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WECC Standard BAL-002-WECC-2 — Contingency Reserve
Guideline and Technical Basis
A Guidance Document addressing implementation of this standard has been filed with this
standard.
Version History

Version

Date

Action

1

October 29, 2008

Adopted by NERC Board of
Trustees

1

October 21, 2010

Order issued remanding
BAL-002-WECC-1

2

November 7, 2012

Adopted by NERC Board of
Trustees

Change Tracking

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