BAL-002-2 Reliability Standard

BAL-002-2 – Disturbance Control Standard – Contingency Reserve for Recovery from a
Balancing Contingency Event
A. Introduction
1.

Title: Disturbance Control Standard – Contingency Reserve for Recovery from a
Balancing Contingency Event

2.

Number:

3.

Purpose: To ensure the Balancing Authority or Reserve Sharing Group balances
resources and demand and returns the Balancing Authority's or Reserve Sharing
Group's Area Control Error to defined values (subject to applicable limits) following a
Reportable Balancing Contingency Event.

4.

Applicability:
4.1.

BAL-002-2

Responsible Entity
4.1.1. Balancing Authority
4.1.1.1.
A Balancing Authority that is a member of a Reserve
Sharing Group is the Responsible Entity only in periods during which the
Balancing Authority is not in active status under the applicable
agreement or governing rules for the Reserve Sharing Group.
4.1.2. Reserve Sharing Group

5.

Effective Date: See the Implementation Plan for BAL-002-2.

6.

Background:
Reliably balancing an Interconnection requires frequency management and all of its
aspects. Inputs to frequency management include Tie-Line Bias Control, Area Control
Error (ACE), and the various Requirements in NERC Resource and Demand Balancing
Standards, specifically BAL-001-2 Real Power Balancing Control Performance and BAL003-1 Frequency Response and Frequency Bias Setting.

B. Requirements and Measures
R1.

The Responsible Entity experiencing a Reportable Balancing Contingency Event shall:
[Violation Risk Factor: Medium] [Time Horizon: Real-time Operations]
1.1.

within the Contingency Event Recovery Period, demonstrate recovery by
returning its Reporting ACE to at least the recovery value of:
•

zero (if its Pre-Reporting Contingency Event ACE Value was positive or
equal to zero); however, any Balancing Contingency Event that occurs
during the Contingency Event Recovery Period shall reduce the required
recovery: (i) beginning at the time of, and (ii) by the magnitude of, such
individual Balancing Contingency Event,

or,
•

its Pre-Reporting Contingency Event ACE Value (if its Pre-Reporting
Contingency Event ACE Value was negative); however, any Balancing
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BAL-002-2 – Disturbance Control Standard – Contingency Reserve for Recovery from a
Balancing Contingency Event
Contingency Event that occurs during the Contingency Event Recovery
Period shall reduce the required recovery: (i) beginning at the time of, and
(ii) by the magnitude of, such individual Balancing Contingency Event.
1.2.

document all Reportable Balancing Contingency Events using CR Form 1.

1.3.

deploy Contingency Reserve, within system constraints, to respond to all
Reportable Balancing Contingency Events, however, it is not subject to
compliance with Requirement R1 part 1.1 if:
1.3.1 the Responsible Entity:
•

is a Balancing Authority experiencing a Reliability Coordinator
declared Energy Emergency Alert Level or is a Reserve Sharing Group
whose member, or members, are experiencing a Reliability
Coordinator declared Energy Emergency Alert level, and

•

is utilizing its Contingency Reserve to mitigate an operating
emergency in accordance with its emergency Operating Plan, and

•

has depleted its Contingency Reserve to a level below its Most Severe
Single Contingency

or,
1.3.2 the Responsible Entity experiences:
•

multiple Contingencies where the combined MW loss exceeds its
Most Severe Single Contingency and that are defined as a single
Balancing Contingency Event, or

•

multiple Balancing Contingency Events within the sum of the time
periods defined by the Contingency Event Recovery Period and
Contingency Reserve Restoration Period whose combined magnitude
exceeds the Responsible Entity's Most Severe Single Contingency.

M1. Each Responsible Entity shall have, and provide upon request, as evidence, a CR Form
1 with date and time of occurrence to show compliance with Requirement R1. If
Requirement R1 part 1.3 applies, then dated documentation that demonstrates
compliance with Requirement R1 part 1.3 must also be provided.
R2. Each Responsible Entity shall develop, review and maintain annually, and implement
an Operating Process as part of its Operating Plan to determine its Most Severe Single
Contingency and make preparations to have Contingency Reserve equal to, or greater
than the Responsible Entity’s Most Severe Single Contingency available for
maintaining system reliability. [Violation Risk Factor: Medium] [Time Horizon:
Operations Planning]

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BAL-002-2 – Disturbance Control Standard – Contingency Reserve for Recovery from a
Balancing Contingency Event
M2. Each Responsible Entity will have the following documentation to show compliance
with Requirement R2:
•

a dated Operating Process;

•

evidence to indicate that the Operating Process has been reviewed and
maintained annually; and,

•

evidence such as Operating Plans or other operator documentation that
demonstrate that the entity determines its Most Severe Single Contingency and
that Contingency Reserves equal to or greater than its Most Severe Single
Contingency are included in this process.

R3. Each Responsible Entity, following a Reportable Balancing Contingency Event, shall
restore its Contingency Reserve to at least its Most Severe Single Contingency, before
the end of the Contingency Reserve Restoration Period, but any Balancing
Contingency Event that occurs before the end of a Contingency Reserve Restoration
Period resets the beginning of the Contingency Event Recovery Period. [Violation Risk
Factor: Medium] [Time Horizon: Real-time Operations]
M3. Each Responsible Entity will have documentation demonstrating its Contingency
Reserve was restored within the Contingency Reserve Restoration Period, such as
historical data, computer logs or operator logs.
C. Compliance
1.

Compliance Monitoring Process
1.1.

Compliance Enforcement Authority
As defined in the NERC Rules of Procedure, “Compliance Enforcement
Authority” means NERC or the Regional Entity in their respective roles of
monitoring and enforcing compliance with the NERC Reliability Standards.

1.2.

Evidence Retention
The following evidence retention period(s) 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.
The Responsible Entity shall retain data or evidence to show compliance for the
current year, plus three previous calendar years, unless directed by its
Compliance Enforcement Authority to retain specific evidence for a longer
period of time as part of an investigation.

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BAL-002-2 – Disturbance Control Standard – Contingency Reserve for Recovery from a
Balancing Contingency Event
If a Responsible Entity is found noncompliant, it shall keep information related
to the noncompliance until found compliant, or for the time period specified
above, whichever is longer.
The Compliance Enforcement Authority shall keep the last audit records and all
subsequent requested and submitted records.
1.3.

Compliance Monitoring and Assessment Processes:
As defined in the NERC Rules of Procedure, “Compliance Monitoring and
Assessment Processes” refers to the identification of the processes that will be
used to evaluate data or information for the purpose of assessing performance
or outcomes with the associated Reliability Standard.

1.4.

Additional Compliance Information
The Responsible Entity may use Contingency Reserve for any Balancing
Contingency Event and as required for any other applicable standards.

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BAL-002-2 – Disturbance Control Standard – Contingency Reserve for Recovery from a Balancing Contingency Event
Table of Compliance Elements
R#

R1.

Time
Horizon
Real-time
Operations

VRF

Violation Severity Levels
Lower VSL

Medium The Responsible Entity
achieved less than
100% but at least 90%
of required recovery
from a Reportable
Balancing Contingency
Event during the
Contingency Event
Recovery Period

Moderate VSL

High VSL

Severe VSL

The Responsible Entity
achieved less than
90% but at least 80%
of required recovery
from a Reportable
Balancing Contingency
Event during the
Contingency Event
Recovery Period.

The Responsible Entity
achieved less than
80% but at least 70%
of required recovery
from a Reportable
Balancing Contingency
Event during the
Contingency Event
Recovery Period.

The Responsible Entity
achieved less than
70% of required
recovery from a
Reportable Balancing
Contingency Event
during the
Contingency Event
Recovery Period.

N/A

The Responsible Entity
developed an
Operating Process to
determine its Most
Severe Single
Contingency and to
have Contingency
Reserve equal to, or
greater than the

The Responsible Entity
failed to develop an
Operating Process to
determine its Most
Severe Single
Contingency and to
have Contingency
Reserve equal to, or
greater than the

OR
The Responsible Entity
failed to use CR Form 1
to document a
Reportable Balancing
Contingency Event.
R2.

Operations
Planning

Medium The Responsible Entity
developed and
implemented an
Operating Process to
determine its Most
Severe Single
Contingency and to
have Contingency
Reserve equal to, or

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BAL-002-2 – Disturbance Control Standard – Contingency Reserve for Recovery from a Balancing Contingency Event
greater than the
Responsible Entity’s
Most Severe Single
Contingency but failed
to maintain annually
the Operating Process.
R3

Real-time
Operations

Medium The Responsible Entity
restored less than
100% but at least 90%
of required
Contingency Reserve
following a Reportable
Balancing Contingency
Event during the
Contingency Event
Restoration Period.

The Responsible Entity
restored less than 90%
but at least 80% of
required Contingency
Reserve following a
Reportable Balancing
Contingency Event
during the
Contingency Event
Restoration Period.

Responsible Entity’s
Most Severe Single
Contingency but failed
to implement the
Operating Process.

Responsible Entity’s
Most Severe Single
Contingency..

The Responsible Entity
restored less than 80%
but at least 70% of
required Contingency
Reserve following a
Reportable Balancing
Contingency Event
during the
Contingency Event
Restoration Period.

The Responsible Entity
restored less than 70%
of required
Contingency Reserve
following a Reportable
Balancing Contingency
Event during the
Contingency Event
Restoration Period.

D. Regional Variances
None.
E. Interpretations
None.
F. Associated Documents
BAL-002-2 Contingency Reserve for Recovery from a Balancing Contingency Event Background Document
CR Form 1

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BAL-002-2 – Disturbance Control Standard – Contingency Reserve for Recovery from a
Balancing Contingency Event

Version History
Version

Date

Action

Change Tracking

0

April 1, 2005

Effective Date

New

0

August 8, 2005

Removed “Proposed” from
Effective Date

Errata

0

February 14,
2006

Revised graph on page 3, “10
min.” to “Recovery time.”
Removed fourth bullet.

Errata

1

September 9,
2010

Filed petition for revisions to BAL002 Version 1 with the
Commission

Revision

1

January 10, 2011

FERC letter ordered in Docket No.
RD10-15-00 approving BAL-002-1

1

April 1, 2012

Effective Date of BAL-002-1

1a

November 7,
2012

Interpretation adopted by the
NERC Board of Trustees

1a

February 12,
2013

Interpretation submitted to FERC

2

November 5,
2015

Adopted by NERC Board of
Trustees

Complete revision

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Supplemental Material
Rationale
During development of this standard, text boxes were embedded within the standard to explain
the rationale for various parts of the standard. Upon BOT adoption, the text from the rationale
text boxes was moved to this section.
Rationale for Requirement R1:
Requirement R1 reflects the operating principles first established by NERC Policy 1 (Generation
Control and Performance). Its objective is to assure the Responsible Entity balances resources
and demand and returns its Reporting Area Control Error (ACE) to defined values (subject to
applicable limits) following a Reportable Balancing Contingency Event. It requires the
Responsible Entity to recover from events that would be less than or equal to the Responsible
Entity’s MSSC. It establishes the amount of Contingency Reserve and recovery and restoration
timeframes the Responsible Entity must demonstrate in a compliance evaluation. It is intended
to eliminate the ambiguities and questions associated with the existing standard. In addition, it
allows Responsible Entities to have a clear way to demonstrate compliance and support the
Interconnection to the full extent of its MSSC.
Requirement R1 does not apply when an entity experiences a Balancing Contingency Event that
exceeds its MSSC (which includes multiple Balancing Contingency Events as described in R1 part
1.3.2 below) because a fundamental goal of the SDT is to assure the Responsible Entity has
enough flexibility to maintain service to Demand while managing reliability. The SDT’s intent is
to eliminate any potential overlap or conflict with any other NERC Reliability Standard to
eliminate duplicative reporting, and other issues.
Commenters suggested a Quarterly Compliance similar to the current reports sent to NERC. The
drafting team attempted to draft measurement language and VSL’s for quarterly monitoring of
compliance to R1. But the drafting team found that the VSL levels developed were likely to
place smaller BA’s and RSGs in a severe violation regardless of the size of the failure. Therefore,
the drafting team has not adopted a quarterly compliance calculation. Also, the proposed
requirement and compliance process meets the directive in Paragraph 354 of Order 693.
Finally, commenters have suggested that the language in R1 part 1.3 be changed to specifically
state under which EEA level the exclusion applies. The drafting team disagrees with this
proposal. NERC is in the process of changing the EEA levels and what is expected in each level.
The current EEA levels suggest that when an entity is experiencing an EEA Level 2 or 3 it is short
of Contingency Reserves as normally defined to exclude readiness to curtail a specific amount
of Firm Demand. Under the proposed EEA process, this would only be during an EEA Level 3. In
order to reduce the need for consequent modifications of the BAL-002 standard, the drafting
team has developed the proposed language in Requirement 1 Part 1.3.1 such that it addresses
both current and future EEA process. In addition, the drafting team has added some clarifying
language to 1.3.1 since comments were presented in previous postings expressing a concern
only a Balancing Authority may request declaration of an EEA and a RSG cannot request an EEA.
The standard drafting team’s intent has always been if a BA is experiencing an EEA event under

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Supplemental Material
which its contingency reserve has been activated, the RSG in which it resides would also be
considered to be exempt from R1 compliance.
Rationale for Requirement R2:
R2 establishes the need to actively plan in the near term (e.g., day-ahead) for expected
Reportable Balancing Contingency Events. This requirement is similar to the current standard
which requires an entity to have available a level of contingency reserves equal to or greater
than its Most Severe Single Contingency.
Rationale for Requirement R3:
This requirement is similar to the existing requirement that an entity that has experienced an
event shall restore its Contingency Reserves within 105 minutes of the event. Note that if an
entity is experiencing an EEA it may need to depend on potential availability (or make ready for
potential curtailment) of its firm loads to restore Contingency Reserve. This is the reason for the
changes to the definition of Contingency Reserve in the posting.

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