News Release on RM15-2 NOPR

February 19, 2015
News Media Contact
Craig Cano | 202-502-8680
Docket No. RM15-2-000
Item No. E-2

FERC Proposes Sale of Primary Frequency Response Service at Market-Based Rates
The Federal Energy Regulatory Commission today proposed to allow the sale of primary frequency response service at
market-based rates by sellers with market-based rate authority for energy and capacity. The Notice of Proposed
Rulemaking (NOPR) is intended to promote competition in anticipation of growing demand for the service as a result of
a reliability standard that requires Balancing Authorities to meet a minimum frequency response obligation.
Primary frequency response involves the autonomous, automatic and rapid response of a generator or other resource to
change its output to rapidly dampen large changes in frequency, which must be maintained within predetermined
boundaries above and below 60 Hertz to ensure reliable operation of the North American electric system.
Most Balancing Authorities should be able to use their own resources to meet the Frequency Response and Frequency
Bias Setting Reliability Standard (BAL-003-1) approved by FERC in January 2014. However, the standard does not limit
Balancing Authorities in how they meet the requirements of the standard, and the Commission believes that some may
be interested in voluntary purchases of a primary frequency response product if doing so would be economically
beneficial.
Any entity selling primary frequency response service at either market- or cost-based rates would be required to report
those sales in its Electric Quarterly Report to the Commission.
Comments on the NOPR are due 60 days after publication in the Federal Register.
R-15-21

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