151 FERC ¶ 61,048

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

18 CFR Part 40

[Docket No. RM14-10-000; Order No. 810]

Real Power Balancing Control Performance Reliability Standard

(Issued April 16, 2015)

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

SUMMARY: The Federal Energy Regulatory Commission (Commission) approves

Reliability Standard BAL-001-2 (Real Power Balancing Control Performance) and four

new definitions submitted by the North American Electric Reliability Corporation 

(NERC), the Commission-certified Electric Reliability Organization. Reliability 

Standard BAL-001-2 is designed to ensure that applicable entities maintain system 

frequency within narrow bounds around a scheduled value, and improves reliability by 

adding a frequency component to the measurement of a Balancing Authority’s Area 

Control Error. In addition, the Commission directs NERC to submit an informational 

filing pertaining to the potential impact of the Reliability Standard, and also directs 

NERC to revise one definition. 

DATE: This rule will become effective [INSERT DATE 60 days after publication in 

the FEDERAL REGISTER].
FOR FURTHER INFORMATION CONTACT:

Enakpodia Agbedia (Technical Information)

Office of Electric Reliability, Division of Reliability Standards 

Federal Energy Regulatory Commission 

888 First Street, NE 

Washington, DC 20426 

Telephone: (202) 502-6750

Enakpodia.Agbedia@ferc.gov

Mark Bennett (Legal Information)

Office of the General Counsel

Federal Energy Regulatory Commission

888 First Street, NE 

Washington, DC 20426

Telephone: (202) 502-8524

Mark.Bennett@ferc.gov

SUPPLEMENTARY INFORMATION: 
151 FERC ¶ 61,048

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Before Commissioners: Norman C. Bay, Chairman;

 Philip D. Moeller, Cheryl A. LaFleur,

Tony Clark, and Colette D. Honorable.

Real Power Balancing Control Performance 

Reliability Standard

Docket No. RM14-10-000

ORDER NO. 810

FINAL RULE

(Issued April 16, 2015)

1. Pursuant to section 215 of the Federal Power Act (FPA),1 the Commission

approves Reliability Standard BAL-001-2 (Real Power Balancing Control Performance) 

submitted by the North American Electric Reliability Corporation (NERC), the 

Commission-certified Electric Reliability Organization (ERO). Reliability Standard

BAL-001-2 applies to balancing authorities and Regulation Reserve Sharing Groups,

2

and is intended to ensure that Interconnection frequency is maintained within predefined 

frequency limits. The Commission also finds that Reliability Standard BAL-001-2 

addresses the Commission’s directive set forth in Order No. 693 pertaining to 

 1

 16 U.S.C. 824(o).

2 NERC defines Regulation Reserve Sharing Group as “[a]group whose members 

consist of two or more Balancing Authorities that collectively maintain, allocate, and 

supply the Regulating Reserve required for all member Balancing Authorities to use in 

meeting applicable regulating standards.” NERC Petition at 7. 
Docket No. RM14-10-000 - 2 -

BAL-002-0.

3 The Commission approves the retirement of currently-effective Reliability 

Standard BAL-001-1 immediately prior to the effective date of Reliability Standard 

BAL-001-2. 

2. Further, the Commission approves NERC’s four proposed definitions, associated 

violation risk factors and violation severity levels, implementation plan, and effective 

date. The Commission also directs NERC to submit an informational filing 90 days after 

the end of the two-year period following implementation that includes an analysis of data 

on whether experience with the Balancing Authority ACE Limit in the first two years 

after approval has seen ACE swings and inadvertent interchange4 and unscheduled power 

flows5 that could cause system operating limit (SOL) and interconnection reliability 

operating limit (IROL) exceedances, and further directs NERC to revise one definition.

I. Background

3. Section 215 of the FPA requires a Commission-certified ERO to develop 

mandatory and enforceable Reliability Standards that are subject to Commission review 

and approval. Specifically, the Commission may approve, by rule or order, a proposed 

 3 Mandatory Reliability Standards for the Bulk-Power System, Order No. 693, 

FERC Stats. & Regs. ¶ 31,242, order on reh’g, Order No. 693-A, 120 FERC ¶ 61,053 

(2007). 

4 Inadvertent interchange is “[t]he difference between the Balancing Authority’s 

Net Actual Interchange and Net Scheduled Interchange. (IA – IS).” NERC Glossary of 

Terms Used in Reliability Standards (NERC Glossary) at 42.

5

 Unscheduled power flows generally refers to power flows that result from the 

law of physics that causes power from a given source to flow over all possible paths to its 

destination.
Docket No. RM14-10-000 - 3 -

Reliability Standard or modification to a Reliability Standard if it determines that the 

Reliability Standard is just, reasonable, not unduly discriminatory or preferential and in 

the public interest.6

 Once approved, the Reliability Standards may be enforced by 

NERC, subject to Commission oversight, or by the Commission independently.7

 

4. Pursuant to section 215 of the FPA, the Commission established a process to select 

and certify an ERO,8 and subsequently certified NERC as the ERO.

9

 Subsequent to the 

Commission’s issuance of Order No. 693, approving 83 of the 107 Reliability Standards 

filed by NERC, the Commission approved Reliability Standard BAL-001-0 and 

companion Reliability Standard BAL-002-0.10 While approving Reliability Standard 

BAL-002-0, the Commission directed NERC “to modify this Reliability Standard to 

define a significant deviation and a reportable event, taking into account all events that 

have an impact on frequency, e.g., loss of supply, loss of load and significant scheduling 

 6

 16 U.S.C. 824o(d)(2).

7

 Id. 824o(e).

8 Rules Concerning Certification of the Electric Reliability Organization; and 

Procedures for the Establishment, Approval, and Enforcement of Electric Reliability 

Standards, Order No. 672, FERC Stats. & Regs. ¶ 31,204, order on reh’g, Order 

No. 672-A, FERC Stats. & Regs. ¶ 31,212 (2006).

9

 North American Electric Reliability Corp., 116 FERC ¶ 61,062, order on reh’g 

and compliance, 117 FERC ¶ 61,126 (2006), aff’d sub nom. Alcoa, Inc. v. FERC, 564 

F.3d 1342 (D.C. Cir. 2009). 

10 North American Electric Reliability Corporation, Docket No. RD13-11-000 

(Oct. 16, 2013) (delegated letter order). 
Docket No. RM14-10-000 - 4 -

problems, which can cause frequency disturbances and to address how balancing 

authorities should respond.”11 

II. NERC Petition and Reliability Standard BAL-001-2

5. On April 2, 2014, NERC filed a petition seeking approval of Reliability Standard 

BAL-001-2, four new definitions to be added to the NERC Glossary and the associated 

violation risk factors and violation severity levels, effective date, and implementation 

plan.12 In its petition, NERC explained that balancing generation and load is necessary to 

ensure that system frequency is maintained within narrow bounds based on a scheduled 

value. NERC stated that the purpose of Reliability Standard BAL-001-2 is to maintain 

Interconnection frequency within predefined frequency limits and that the Reliability 

Standard “improves reliability by adding a frequency component to the measurement of a 

Balancing Authority’s Area Control Error (ACE) and allows for the formation of 

Regulation Reserve Sharing Groups.”13 NERC further stated that Reliability Standard

BAL-001-2 is just, reasonable, not unduly discriminatory or preferential, and in the 

public interest because it satisfies the factors set forth in Order No. 672, which the 

Commission applies when reviewing a proposed Reliability Standard.14 Also, NERC 

 11 Order No. 693, FERC Stats. & Regs. ¶ 31,242 at P 355.

12 Reliability Standard BAL-001-2 not attached to this Final Rule. The standard 

is available on the Commission’s eLibrary document retrieval system in Docket No.

RM14-10-000 and on the NERC website, www.nerc.com. 

13 NERC Petition at 2.

14 Id. at 6 and Exhibit C (Order No. 672 Criteria) (citing Order No. 672, FERC 

Stats. & Regs. ¶ 31,204 at PP 323-335, 444).
Docket No. RM14-10-000 - 5 -

asserted that Reliability Standard BAL-001-2 addresses the Commission’s Order No. 693 

directive pertaining to Reliability Standard BAL-002-0. 

6. Reliability Standard BAL-001-2 replaces the Control Performance Standard 2 

(CPS2) in currently-effective Requirement R2 with a new term: “Balancing Authority 

ACE Limit.”15 The Balancing Authority ACE Limit, unique for each balancing 

authority, contains dynamic limits as a function of Interconnection frequency and 

provides the basis for a balancing authority’s obligation to balance its resources and 

demand in real-time so that its clock-minute average ACE does not exceed its Balancing 

Authority ACE Limit for more than 30 consecutive clock-minutes.16 

7. Reliability Standard BAL-001-2 has two requirements and two attachments that 

contain the mathematical equations for calculating the Control Performance Standard 1 

(CPS1) in Requirement R1, the Balancing Authority ACE Limit in Requirement R2, and 

associated measures. NERC stated that the only change to Requirement R1 is to move 

the equation and explanation of the individual components of CPS1 to Attachment 1. 

NERC explained that the revisions to Requirement R1 “are administratively efficient and 

clarify the intent of the Requirement.”17 NERC further stated that the “underlying 

performance aspect” of Requirement R1 remains the same: “to measure how well a 

 15 Area Control Error (ACE) is the “instantaneous difference between a Balancing 

Authority’s net actual and scheduled interchange, taking into accounts the effects of 

Frequency Bias, correction for meter error, and Automatic Time Error Correction

(ATEC), if operating in the ATEC mode. ATEC is only applicable to Balancing 

Authorities in the Western Interconnection.” NERC Glossary at 7.

16 NERC Petition at 12.

17 NERC Petition at 11.
Docket No. RM14-10-000 - 6 -

Balancing Authority is able to control its generation and load management programs, as 

measured by its ACE, to support its Interconnection’s frequency over a rolling one-year 

period.”18

8. Requirement R2 is new and replaces the existing Control Performance Standard 2 

requirement. Currently-effective Reliability Standard BAL-001-1, Requirement R2 

requires each balancing authority to operate such that for at least 90 percent of the tenminute periods in a calendar month (using six non-overlapping periods per hour), the 

average ACE must be within a specific limit, referred to as L10. 

9. Requirement R2 of Reliability Standard BAL-001-2 states:

Balancing Authority shall operate such that its clock-minute average 

of Reporting ACE does not exceed its clock-minute Balancing 

Authority ACE Limit (BAAL) for more than 30 consecutive clockminutes, calculated in accordance with Attachment 2, for the 

applicable Interconnection in which the Balancing Authority 

operates.

10. NERC explained that the Balancing Authority ACE Limit is unique for each 

balancing authority and provides dynamic limits for the balancing authority’s ACE value 

as a function of its Interconnection frequency.19 NERC stated that Reliability Standard 

BAL-001-2 is intended to enhance the reliability of each Interconnection by maintaining 

frequency within predefined limits under all conditions. Furthermore, NERC stated that 

Reliability Standard BAL-001-2 and accompanying definitions include the benefits of the 

ATEC equation in the Western Electricity Coordinating Council’s (WECC) regional 

 18 Id.

19 Id. at 12. 
Docket No. RM14-10-000 - 7 -

variance in Reliability Standard BAL-001-1.20

11. In its petition, NERC proposed violation risk factors and violation severity levels 

for each requirement of Reliability Standard BAL-001-2, an implementation plan and an 

effective date. NERC stated that these proposals were developed and reviewed for 

consistency with NERC and Commission guidelines. 

12. NERC proposed an effective date for Reliability Standard BAL-001-2 that is the 

first day of the first calendar quarter that is twelve months after the date of Commission 

approval. NERC stated that this implementation date will allow entities to make any 

software adjustment that may be required to perform the Balancing Authority ACE Limit 

calculations.21 

13. On May 9, 2014, NERC submitted a supplemental filing to address the status of 

the Commission directive in Order No. 693 that NERC “define a significant deviation 

and a reportable event, taking into account all events that have an impact on frequency, 

e.g., loss of supply, loss of load and significant scheduling problems....”22 Further, 

NERC provided an update regarding the status of the field trial undertaken for BAL-001-

2. In the supplemental filing, NERC reiterated the importance of establishing dynamic 

limits for a balancing authority’s ACE as a function of the Interconnection frequency, 

stating that “[o]ne of the reliability benefits of the proposed Reliability Standard is that it 

 20 Id. at 2.

21 Id. at 3.

22 NERC May 9, 2014 Supplemental Filing at 3-5 (citing Order No. 693, FERC 

Stats. & Regs. ¶ 31,242 at P 355).
Docket No. RM14-10-000 - 8 -

allows Balancing Authorities to calculate their position within these boundaries on a realtime basis and take action to support reliability.”23 Further, NERC stated that Reliability 

Standard BAL-001-2 addresses the Commission’s directive related to BAL-002-0 “in an 

equally efficient and effective manner.”24 NERC added that revisions to Reliability 

Standard BAL-002-1 are currently being developed and will complement Reliability 

Standard BAL-001-2. Regarding the ongoing field trial, discussed below, NERC stated 

that “the widespread participation of Balancing Authorities has provided insight into how 

the changes in Reliability Standard BAL-001-2 will impact reliability.”25

14. On July 31, 2014, NERC submitted an informational filing of its Preliminary Field 

Trial Report evaluating the effects of Reliability Standard BAL-001-2.26 NERC stated

that the Field Trial Report results to date demonstrate that the correlation between 

Requirements R1 and R2 of Reliability Standard BAL-001-2 drive corrective actions to 

support Interconnection frequency and reliability.27 NERC also stated that the Balancing 

Authority ACE Limit, in conjunction with currently-effective Reliability Standard BAL003-1 (Frequency Response and Frequency Bias Setting), satisfies the directive in Order 

 23 Id. at 2. 

24 Id. at 3.

25 NERC Supplemental Filing at 6 (stating that 47 balancing authorities 

participated in the field trial: 16 in the Eastern Interconnection, 29 in the Western 

Interconnection, ERCOT and Québec).

26 NERC July 31, 2014 Informational Filing (Field Trial Report).

27 NERC Field Trial Report at 1.
Docket No. RM14-10-000 - 9 -

No. 693 pertaining to Reliability Standard BAL-002-0.

28 

III. Notice of Proposed Rulemaking

15. On November 20, 2014, the Commission issued a Notice of Proposed Rulemaking 

(NOPR) proposing to approve Reliability Standard BAL-001-2 as just, reasonable, not 

unduly discriminatory or preferential and in the public interest.29 The Commission also 

proposed to approve NERC’s four proposed definitions, violation risk factor and 

violation severity level assignments, and the retirement of currently-effective Reliability 

Standard BAL-001-1.30 The NOPR stated that the new Balancing Authority ACE Limit 

in Reliability Standard BAL-001-2 encourages operation in support of Interconnection 

frequency and drives corrective action back within predefined ACE limits when needed 

to adjust Interconnection frequency. 

16. While the Commission proposed to approve Reliability Standard BAL-001-2, the 

Commission raised concerns regarding the potential of the Reliability Standard to 

contribute to unscheduled power flows and inadvertent interchange. Based on that 

 28 Id. at 14.

29 Real Power Balancing Control Performance Reliability Standard, Notice of 

Proposed Rulemaking, 79 Fed. Reg. 70,483 (November 26, 2014), 149 FERC ¶ 61,139 

(2014).

30 The four proposed definitions for inclusion in the NERC Glossary are: 

Regulation Reserve Sharing Group, Reserve Sharing Group Reporting ACE, Reporting 

ACE, and Interconnection. NERC Petition at 7-10. The standard drafting team explained 

that Regulation Reserve Sharing Group will be added to the NERC Compliance Registry 

prior to implementation of the Reliability Standard. NERC Petition, Exhibit G (Summary 

of Development History and Complete Record of Development), Consideration of 

Comments, April 2013 at 13.
Docket No. RM14-10-000 - 10 -

concern, the Commission proposed to direct NERC to monitor unscheduled power flows 

and inadvertent interchange in the Western and Eastern Interconnections and submit an 

informational filing following implementation of the Reliability Standard providing the 

number of SOL/IROL violations, the date, time, location, duration and magnitude due to 

unscheduled power flows and inadvertent interchange. In the NOPR, the Commission 

sought comments on the following issues: (1) the need for an informational filing and 

whether NERC should include additional data pertaining to unscheduled power flows and 

inadvertent interchange in its informational filing; and (2) whether a regional variance 

would be necessary for a region experiencing adverse impacts from the Reliability 

Standard due to inadvertent interchange.

17. In response to the NOPR, the Commission received comments from: NERC, TriState Generation and Transmission Association, (Tri-State), Arizona Public Service 

Company (APS), Edison Electric Institute (EEI), NaturEner USA (NaturEner), Regional

Transmission Organizations—Midcontinent Independent System Operator, ISO New 

England, and PJM Interconnection (collectively “Indicated RTOs”), The Steel 

Manufacturers Association (SMA), Duke Energy Corporation (Duke), Western Area 

Power Administration (WAPA), Powerex Corp (Powerex), New York Independent 

System Operator (NYISO), and Bonneville Power Administration (BPA).

IV. Discussion

18. Pursuant to FPA section 215(d)(2), we approve Reliability Standard BAL-001-2 as 

just, reasonable, not unduly discriminatory or preferential, and in the public interest. The

purpose of Reliability Standard BAL-001-2 is to control Interconnection frequency 
Docket No. RM14-10-000 - 11 -

within defined limits. The Commission determines that the Reliability Standard will help 

ensure that Interconnection frequency is maintained through both long and short term 

performance measures for Interconnection frequency control and dynamic (i.e., real-time) 

limits that are specific for each balancing authority and Interconnection.

31 We find that, 

by basing Balancing Authority ACE Limits on predefined frequency trigger limits for 

each Interconnection, the real-time measurements established in the Reliability Standard

will help ensure that the Interconnection frequency returns to a reliable state should a 

balancing authority’s ACE, or the Interconnection’s frequency, exceed acceptable 

bounds. 

19. We also determine that the Reliability Standard satisfies the outstanding directive 

concerning Reliability Standard BAL-002 set forth in Order No. 693, as explained in the 

NOPR,

32 and approve NERC’s four definitions, violation risk factor and violation 

severity level assignments, and the retirement of currently-effective Reliability Standard 

BAL-001-1. Further, we approve NERC’s implementation plan, in which NERC 

proposes an effective date of the first day of the first calendar quarter, twelve months 

after the date of Commission approval.33

20. While approving Reliability Standard BAL-001-2, as discussed below, we direct

NERC to submit an informational filing to assess the potential impact of the Reliability 

 31 NERC Supplemental Filing at 2.

32 NOPR, 149 FERC ¶ 61,139 at PP 18-19. 

33 NERC Petition, Ex. B (Implementation Plan for Proposed Reliability Standard 

BAL-001-2) at 4.
Docket No. RM14-10-000 - 12 -

Standard as described herein and to revise the definition of the term Reporting ACE in 

the NERC Glossary. 

21. We discuss below the following issues raised in the NOPR and addressed in the 

comments: (A) the proposed informational filing and NOPR comments regarding the 

need to revise the definition of the term Reporting ACE; and (B) whether a regional 

variance is necessary to address possible adverse impacts from the implementation of 

Reliability Standard BAL-001-2.

A. Informational Filing and Definition of Reporting ACE 

NOPR

22. In the NOPR, the Commission noted that feedback from some stakeholders who 

participated in the field trial indicated that the Balancing Authority ACE Limit 

established in Requirement R2 of Reliability Standard BAL-001-2 could increase 

unscheduled power flows, possibly resulting in approaching or exceeding SOL/IROL

violations. The NOPR observed that, in comments submitted to NERC’s standard 

drafting team, one large transmission operator stated that the Balancing Authority ACE 

Limit could increase the number of system operating limit violations, and could cause 

large unscheduled power flows resulting in an increased ACE.34 Another stakeholder 

commented that the Balancing Authority ACE Limit could provide opportunities for 

entities to create unscheduled power flows within the boundaries established by the 

 34 NOPR, 149 FERC ¶ 61,139 at P 20 (citing NERC Petition, Ex. G (Summary of 

Development History and Complete Record of Development), Consideration of 

Comments, April 2013 at 43).
Docket No. RM14-10-000 - 13 -

Reliability Standard.35

23. The NOPR stated that, while NERC asserted that there was no relationship 

between the Balancing Authority ACE Limit field trial and accumulated inadvertent 

interchange, a large allowance of ACE deviations could increase the amount of 

inadvertent interchange on the bulk electric system. The NOPR explained that Reliability 

Standard BAL-001-2 could allow balancing authorities to have a very large deviation 

from an ACE of zero and still be compliant with the dynamic values of the Balancing 

Authority ACE Limits in the proposed Reliability Standard.36 

24. Based on this information, in the NOPR, the Commission expressed concern that 

Reliability Standard BAL-001-2 may have the “unintended consequence” of (i) creating 

large unscheduled power flows that could unduly burden transmission operators and 

reliability coordinators in addressing power flows that approach or exceed system 

operating limits or interconnection reliability operating limits, and (ii) causing significant 

increases in inadvertent interchange resulting in an adverse reliability impact between 

real-time operations and day and/or hour-ahead analysis performed by reliability 

coordinators and transmission operators.37 

25. In order to evaluate the effect of the Reliability Standard on unscheduled power 

flows and inadvertent interchange and the potential impact on the Bulk-Power System, 

the NOPR proposed to direct NERC to submit an informational filing to monitor 

 35 Id., Ex. G, Consideration of Comments, at 77.

36 NOPR, 149 FERC ¶ 61,139 at P 21.

37 Id. P 22.
Docket No. RM14-10-000 - 14 -

unscheduled flows and inadvertent interchange in the Western and Eastern 

Interconnections 90 days after the end of the two-year period following implementation. 

Specifically, the NOPR proposed that NERC’s informational filing provide “the number 

of SOL/IROL violations, the date, time, location, the duration and magnitude, due to 

unscheduled power flows and inadvertent interchange within [the] Western and Eastern 

Interconnections.”38 Further, the NOPR stated that the Commission expects NERC will 

immediately propose and implement adequate remedies should there be increases in 

unscheduled flow and inadvertent interchange causing reliability issues under the new 

Balancing Authority ACE Limit during the two-year period covered by the informational 

filing.

 Comments

26. NERC states that it does not support the Commission’s proposed directive to 

submit an informational filing with the data described in the NOPR, because it “will not 

conclusively demonstrate that large ACE swings are correlated with unscheduled power 

flow and Inadvertent Interchange causing SOL/IROL exceedances.”39 NERC asserts that 

the proposed directive “is based on the speculative opinions of commenters, supported by 

no documented evidence that the proposed Reliability Standard contributes to 

unscheduled power flows and Inadvertent Interchange,” and would not be an effective 

 38 Id. P 23.

39 NERC Comments at 6.
Docket No. RM14-10-000 - 15 -

use of NERC or industry resources.40 

27. NERC states that the field trial has not produced any “positive evidence” 

establishing that implementing the Balancing Authority ACE Limit causes high ACE 

swings negatively affecting frequency, or relates to unscheduled power flows or 

inadvertent interchange causing SOL/IROL exceedances. Further, NERC asserts that 

“high ACE swings are not necessarily determinative of overloading transmission or 

SOL/IROL exceedances because SOL/IROL exceedances can still occur when ACE is 

zero.”41

28. While disagreeing with the directive as proposed in the NOPR, NERC states that 

as a “first step” to addressing the Commission’s concerns, and to “investigate a possible 

correlation between [the] Balancing Authority ACE Limit and SOL/IROL exceedances as 

attributed to Inadvertent Interchange and unscheduled power flows,” NERC will provide 

the Commission with a “set of baseline data” including “tracking the number of 

SOL/IROL exceedances occurring in each interconnection where a Balancing Authority’s 

ACE was within BAAL.”42 NERC states that it would include this data in an 

informational filing, with the commitment to work with Commission staff to analyze the 

data. 

 40 Id. at 8.

41 Id. 

42 Id. at 8-9.
Docket No. RM14-10-000 - 16 -

29. EEI, Indicated RTOs, NYISO, WAPA, APS, Duke, Tri-State, Powerex and BPA 

support the Commission’s proposed informational filing. While supporting the proposed 

informational filing, EEI believes that the Reliability Standard “will support stronger 

management of interconnection frequency.”43 Indicated RTOs assert that “the trend in 

manual Time Error Correction is a better indicator of unscheduled flows. Operating limit 

violations resulting from unscheduled power flows and the trend in Time Error 

Correction will enable the Commission to evaluate the severity of any issues, and NERC 

and/or its operating committees routinely collect that information.”44

30. NYISO, Tri-State, BPA and Powerex, while supporting the Commission’s 

proposal, urge that the Commission require NERC to provide more data in the 

informational filing than described in the NOPR. NYISO states that NERC should 

provide ACE and Balancing Authority ACE Limit values for the SOL/IROL violations 

associated with unscheduled power flows or inadvertent interchange. BPA asserts that 

NERC should examine all unscheduled power flows resulting from the implementation of 

the Balancing Authority ACE Limit, not just those related to SOL/IROL violations. BPA 

further states that NERC should be required to conduct an analysis every six months for 

the initial two year implementation period, including an examination of loss of supply 

events and their impact on frequency recovery.45

 43 EEI Comments at 3-4.

44 Indicated RTOs Comments at 5-6.

45 BPA Comments at 7.
Docket No. RM14-10-000 - 17 -

31. BPA states that the proposed definition of “Reporting ACE” should be revised to 

include the ATEC upper payback limit term “Lmax” and the bounds of that upper 

payback limit for IATEC. BPA notes that, while incorporating the WECC regional 

variance contained in currently effective Reliability Standard BAL-001-1 may have been 

NERC’s intent, this cannot be accomplished without including the “Lmax” upper 

payback limit and the bounds of that upper payback limit in the NERC Glossary. BPA 

asserts that without this language in the definition, the ATEC payback does not have an 

upper bound, which could cause some significant unscheduled flows in the 

interconnection, because a balancing authority with a large primary inadvertent 

accumulation could pay most of it off within a three hour period. 

32. While supporting the objective of Reliability Standard BAL-001-2, Powerex 

expresses concern that “the ‘inadvertent interchange’ permitted by the modified standard 

will have a material, adverse impact on the western transmission markets subject to the 

Commission’s jurisdiction ... [and] Powerex believes that features of the proposed 

standard could be used to harm competition to the detriment of both transmission 

customers and system reliability.”46 Powerex argues that the Balancing Authority ACE 

Limit “creates opportunities for commercially-interested [balancing authorities] to 

deliberately reduce their control of imbalances, effectively leaning on the grid to balance 

their systems. Such activity creates unscheduled flows on adjacent systems that can 

inequitably and inefficiently curtail the transmission capacity available to the 

 46 Powerex Comments at 7.
Docket No. RM14-10-000 - 18 -

transmission customers that have paid to use the transmission system.”47

33. Powerex urges the Commission to “take additional steps to ensure that 

implementation of the BAAL requirement does not thwart the provision of open access 

transmission service in accordance with Commission policies.”48 Specifically, Powerex 

states that the Commission should “direct NERC to supplement its petition with 

information regarding any rules or requirements that may be in place to protect against 

potential curtailments of transmission customers due to unscheduled flows associated 

with BAAL ACEs.”49 Additionally, Powerex asserts that NERC’s informational filing 

should describe instances in which unscheduled flows associated with the Balancing 

Authority ACE Limit required curtailment of transmission customers or other mitigation 

measures, and that this information should be provided every six months during the initial 

two year implementation period. Powerex also asks the Commission to “provide 

guidance concerning the creation of deliberate [balancing authority] imbalances,” require 

balancing authorities to disclose ACE and Balancing Authority ACE Limit information, 

and direct NERC to implement safeguards to ensure that balancing authorities reduce 

their ACEs before the curtailment of transmission customers.50 Tri-State agrees with 

Powerex’s comments. 

 47 Id. at 8. 

48 Id. at 9.

49 Id. at 22.

50 Powerex Comments at 24-29.
Docket No. RM14-10-000 - 19 -

34. EEI, Indicated RTOs and Duke suggest limiting the informational filing to the 

Western Interconnection. Indicated RTOs state that “there has been a decline in the 

number of time error corrections in the Eastern Interconnection during the course of the 

field trial. These outcomes suggest that BAL-001-2 works as intended, and does not 

trigger issue with respect to inadvertent interchange, at least in the Eastern 

Interconnection.”51 EEI asserts that unscheduled power flows and inadvertent 

interchange “have not been an issue within the Eastern Interconnection Field Trial, which 

has been in place now for nearly ten years. During this trial, approximately two-thirds of 

the Eastern Interconnection operated under the BAAL measure without issue. Therefore, 

EEI does not envision problems arising.”52 Similarly, Duke notes that the Field Trial 

Report specifically states that unscheduled power flows were not cited as problems 

within the Eastern Interconnection.53

35. NaturEner addresses the time component of the Balancing Authority ACE Limit, 

an issue not raised in the NOPR. NaturEner states that the 30 consecutive clock-minute 

limitation on the time during which a balancing authority’s Reporting ACE can exceed its 

Balancing Authority ACE Limit should be extended to 60 consecutive clock-minutes. 

NaturEner asserts that the 30 minute time period provides insufficient time for a 

 51 Indicated RTOs Comments at 5.

52 EEI Comments at 4 (citing Field Trial Report at 13).

53 Duke Comments at 4 (citing Field Trial Report at 13).
Docket No. RM14-10-000 - 20 -

balancing authority to use market mechanisms to resolve imbalance events.54 Further, 

NaturEner states that if Reliability Standard BAL-001-2 is approved in its current form,

the Commission should “include severe loss of wind events as qualifying events under 

BAL-002, thereby qualifying such events as allowable contingency reserve events under 

which contingency reserves may be called upon.”55

 Commission Determination

36. The Commission adopts the NOPR proposal regarding NERC’s submission of an 

informational filing. We determine that the field trial NERC conducted for Reliability 

Standard BAL-001-2 raised sufficient concerns regarding unscheduled power flows and 

inadvertent interchange to warrant NERC’s continued monitoring and submission of an 

informational filing 90 days after the end of the two-year period following

implementation, as proposed in the NOPR. Further, we find that the informational filing 

should encompass both the Western and Eastern Interconnections, as there were concerns 

about possible increases of SOL/IROL exceedances in both Interconnections. 56 EEI 

supports limiting the informational filing to the Western Interconnection, stating that the 

Balancing Authority ACE Limit has “been extensively used [in the Eastern 

 54 NaturEner Comments at 1.

55 Id. at 2-3.

56 NYISO supports the inclusion of the Eastern Interconnection within the scope of 

the information filing. NYISO described the fundamental concern that “BAL-001-2 will 

allow balancing authorities to have a very large deviation from an Area Control Error 

(“ACE”)—and potentially negatively affect reliability—yet still be compliant with the 

dynamic values of the [Balancing Authority ACE Limits calculated pursuant to the 

proposed Reliability Standard.” NYISO Comments at 1.
Docket No. RM14-10-000 - 21 -

Interconnection] for many years without issue.”57 However, the Commission believes 

that including both Interconnections is reasonable, because less than 20 percent of 

balancing authorities in the Eastern Interconnection were in the field trial.58

37. We are not persuaded by NERC’s objection to the informational filing, that the 

field trial “produced no conclusive results that large ACE swings are correlated with 

unscheduled power flow and Inadvertent Interchange causing SOL/IROL exceedances.”59

While the field trial may not have been “conclusive,” the information in the report 

indicates the possibility of a correlation between large ACE swings and unscheduled 

power flows that warrant further study and analysis. Thus, we agree with the 

commenters who observed that the field trial demonstrated clear potential for the 

Balancing Authority ACE Limit to cause unscheduled power flows and inadvertent 

interchange that could lead to SOL/IROL problems.60 While the Field Trial Report

suggests that unscheduled flow events in the Western Interconnection may have occurred 

due to a number of factors, the Report does not eliminate large ACE swings as the 

cause.

61 Accordingly, we conclude that the matter warrants further study and analysis, as 

 57 EEI Comments at 1-2.

58 Twenty-seven balancing authorities participated in the Western Interconnection 

field trial and eleven in the Eastern Interconnection. Field Trial Report at 11, 14.

59 NERC Comments at 8.

60 Tri-State Comments at 5, APS Comments at 3, EEI Comments at 4, Duke 

Energy Comments at 3-4, WAPA Comments at 3-4, Powerex Comments at 7, NYISO

Comments at 1-2 and BPA Comments at 7-8.

61 NERC Field Trial Report at 16-17, 20.
Docket No. RM14-10-000 - 22 -

directed.

38. We acknowledge NERC’s commitment to take a “first step” to address the 

Commission’s concerns by providing baseline data, including SOL/IROL exceedances 

where a balancing authority’s ACE was within its Balancing Authority ACE Limit. 

However, we agree with those commenters who urge the Commission to require NERC 

to provide more data than described in the NOPR. Therefore, we direct NERC to make 

an informational filing 90 days after the end of the two-year period following 

implementation that includes an analysis of data (all relevant events or a representative 

sample) on whether experience with the Balancing Authority ACE Limit in the first two 

years after approval has seen ACE swings and unscheduled power flows or inadvertent 

interchange that could cause SOL/IROL exceedances. However, if it is evident that 

during this two-year period the issues discussed above are creating SOL/IROL 

exceedances NERC should provide that information to the Commission, together with 

appropriate recommendations for mitigation, as this information becomes available. 

Further, NERC should also make the underlying data available to Commission staff upon 

request. Regarding BPA’s concerns about the interplay of Reliability Standards BAL001-2 and BAL-002-1, the Commission believes those concerns are best addressed if and 

when NERC files with the Commission proposed changes to Reliability Standard BAL002-1. However, we expect NERC to retain the data pursuant to the analysis directed 

above so that it will be available, if needed, to examine the effect of Reliability Standard
Docket No. RM14-10-000 - 23 -

BAL-002-1 in relation to the Balancing Authority ACE Limit in the future.62 

39. Based on the record before us, the Commission is not persuaded by Powerex’s 

assertion that Reliability Standard BAL-001-2 allows inadvertent interchange that “will 

have a material, adverse impact on the western transmission markets.”63 Further, there is 

no support in the record for Powerex’s claim that there is evidence that during the field 

trial market participants seized “opportunities ... to deliberately reduce their control of 

imbalances, effectively leaning on their systems...resulting in an increase in unscheduled 

flows and degradation of transmission service in the region.”64 Powerex’s broad 

assertions lack factual support in the record of this proceeding and are largely 

speculative.

40. We also note that Powerex presented an analysis of the impact of the Balancing 

Authority ACE Limit on unscheduled flow on the California Oregon Intertie to WECC’s 

Unscheduled Flow Administrative Subcommittee. The WECC staff assessment of 

Powerex’s analysis concluded that “[t]he results of the Powerex analysis are valid only 

within the assumptions they have made, but based upon actual path flow data we believe 

the assumptions are incorrect and lead to large overestimations of the RBC (Balancing 

 62 We leave it to NERC’s discretion whether to include in the informational filing 

time error correction data, as suggested by the Indicated RTOs. (See Indicated RTOs 

Comments at 5-6.)

63 Powerex Comments at 7.

64 Id. at 8.
Docket No. RM14-10-000 - 24 -

Authority ACE Limit) impact on Unscheduled Flow.”65 Powerex’s reliance on the 

increase in e-tag curtailments across Path 36 (“TOT3” in eastern Wyoming and 

Colorado) noted in the WECC Performance Work Group’s December 2011 Quarterly 

Report on the RBC Field Trial as demonstrating that its concerns are “neither speculative 

or theoretical” is similarly unpersuasive.66 The existence of e-tag curtailments during the 

field trial does not establish a causal connection with the Balancing Authority ACE 

Limit, because other factors, such as outages at the San Onofre Nuclear Generating 

Station unit in California; poor hydro conditions in Northern California; and other 

outages impacting energy import to California may have contributed to the curtailments. 

However, this uncertainty reinforces the need for the informational filing and additional 

study directed herein. 

41. We determine that Powerex’s concerns about the possible adverse impacts from 

Reliability Standard BAL-001-2 on reliability, as well as competition and transmission

markets, are unpersuasive. While expressing concern about the reliability risks 

associated with implementing Reliability Standard BAL-001-2, Powerex acknowledges 

that the extent to which the reliability risks it describes “will materialize remains to be 

seen.”67 Instead, we agree with NERC that “[t]he field trial report finds that the results to 

 65 NERC May 9, 2014 Supplemental Filing at 5, n.8 (citing Reliability-based 

Control Field Trial Report presented at January 2013 WECC Board of Directors meeting

at 32) (available at:

https://www.wecc.biz/Administrative/Board%20Packet%20January%2023%202013.pdf.) 

66 Powerex Comments at 17. 67 Id. at 20.
Docket No. RM14-10-000 - 25 -

date demonstrate that the correlation between Requirements R1 and R2 of Reliability 

Standard BAL-001-2 drive corrective actions to support Interconnection frequency and 

reliability.”68 With respect to Powerex’s concerns about the possibility that “gaps” in 

Reliability Standard BAL-001-2 could be “exploited to the detriment of transmission 

customers,” we encourage Powerex to engage in the ongoing monitoring effort and bring 

any specific instances of deliberate misconduct to the Commission’s attention if they 

occur. 69

42. We do not adopt NaturEner’s proposal that the 30 consecutive clock-minute time 

component should be extended to no less than 60 consecutive clock-minutes to allow the 

use of market mechanisms to address imbalance events. We note that in the Technical 

Conclusion section of the Field Trial Report the standard drafting team concluded that 

“[t]he selection of 30 consecutive clock minutes is appropriate and actually improves 

reliability.”70 This conclusion is supported in the Field Trial Report by an adequate 

justification for the 30 consecutive clock-minute time period: 

[S]imilar to the approach taken to address an IROL where operators are 

provided 30 minutes to assess options for mitigation, the team chose to use 

the more conservative limit of 30 minute, well within the risk-based criteria 

of the next resource loss, while also providing appropriate time for the 

operator to assess the current situation and take corrective actions as 

needed. Actual experience operating under the proposed standards has met 

 68 Field Trial Report at 1.

69 Powerex Comments at 9.

70 Field Trial Report at 19.
Docket No. RM14-10-000 - 26 -

with the support of all participating Real-time system operators.71 

In light of this justification and our directive to NERC to monitor the implementation of 

Reliability Standard BAL-001-2 and submit an informational filing, we believe that

NaturEner’s request for annual reviews of the 30 consecutive clock-minute time 

component is unnecessary.

72

43. The Commission is persuaded by BPA’s comments that a revision to the definition 

of Reporting ACE is warranted. In its petition, NERC states that currently-effective 

Reliability Standard BAL-001-1 includes a WECC regional variance which has been 

incorporated into the continent-wide Reliability Standard BAL-001-2 through the 

definition of Reporting ACE. However the definition of Reporting ACE does not include

the “Lmax” upper payback limit and the bounds of that upper payback limit in the 

definition. Accordingly, the Commission directs NERC to revise the definition of 

Reporting ACE to include the “Lmax” upper payback limit and the bounds of that upper 

payback limit prior to the effective date of Reliability Standard BAL-001-1.

 71 Id. The Commission notes that in accordance with Reliability Standard IRO009-1 Requirement R2 and the definition for Interconnection Reliability Operating Limit 

Tv in the NERC Glossary, the 30 minute period is provided for operators to assess and 

implement options for mitigation of an IROL.

72 Regarding NaturEner’s comment that the Commission should require that 

“severe loss of wind events” be considered Qualifying Events under BAL-002, we 

decline to do so in this rulemaking. NaturEner Comments at 9. NaturEner may raise its 

concern in NERC’s current project to revise Reliability Standard BAL-002. 
Docket No. RM14-10-000 - 27 -

B. Need for a Regional Variance

NOPR

44. In the NOPR, the Commission sought comment on whether a regional variance 

would be necessary for those regions that experienced adverse impacts from inadvertent 

interchange during the field trial. The NOPR observed that the Western Interconnection 

applies a limit of four times a balancing authority’s L10 to limit ACE deviations from 

balancing authority flows that negatively impact the transmission system.

Comments

45. WAPA and BPA state that the Commission should direct NERC to include a 

regional variance to establish limits to the Balancing Authority ACE Limits for balancing 

authorities in the WECC before BAL-001-2 is implemented in the Western 

Interconnection. BPA states that currently in the Western Interconnection a limit of 4 

times L10 is used, due to concerns with unscheduled flow. BPA states that WECC should 

continue to use this limit until a new limit is established.73 Rather than a regional 

variance, Indicated RTOs state that a regional standard, or adjustments allowed by 

Reliability Standard BAL-001-2 to address inadvertent interchange, would be preferable. 

 Commission Determination

46. The Commission is not persuaded that there is a need for a regional variance for 

Reliability Standard BAL-001-2 for use in the Western Interconnection. NERC stated in 

its NOPR comments that NERC will develop a regional variance, or a modification to 

 73 BPA Comments at 8. BPA states that NERC will need to retain the definition of 

L10 after currently-effective Reliability Standard BAL-001-1 is retired. Id.
Docket No. RM14-10-000 - 28 -

Reliability Standard BAL-001-2, should NERC’s analysis following the implementation 

of the Reliability Standard confirm the need for either measure.74 We determine that

NERC has described a sound approach for addressing this issue. 

V. Information Collection Statement 

47. The Office of Management and Budget (OMB) regulations require that OMB 

approve certain reporting and recordkeeping (collections of information) imposed by an 

agency.75 Upon approval of a collection of information, OMB will assign an OMB 

control number and expiration date. Respondents subject to the filing requirements of 

this rule will not be penalized for failing to respond to these collections of information 

unless the collections of information displays a valid OMB control number.

48. The Commission is submitting these reporting and recordkeeping requirements to 

OMB for its review and approval under section 3507(d) of the Paper work Reduction 

Act. The NOPR solicited comments on the Commission’s need for this information, 

whether the information will have practical utility, the accuracy of the provided burden 

estimate, ways to enhance the quality, utility, and clarity of the information to be 

collected, and any suggested methods for minimizing the respondent’s burden, including 

the use of automated information techniques. No comments were received. 

49. This final rule approves revisions to Reliability Standard BAL-001-2. NERC 

states in its petition that the Reliability Standard defines a new term: Balancing 

Authority ACE Limit, which is unique for each balancing authority and provides 

 74 NERC Comments at 9.

75 5 C.F.R. 1320.11.
Docket No. RM14-10-000 - 29 -

dynamic limits for a balancing authority’s ACE value as a function of the Interconnection 

frequency.76 NERC states that the Reliability Standard improves reliability by adding a 

frequency component to the measurement of a balancing authority’s ACE, and allows for 

the formation of “Regulation Reserve Sharing Groups.” NERC’s Reliability Standard 

requires a balancing authority to balance its resources and demand in real-time so that the 

clock-minute average of its ACE does not exceed its Balancing Authority ACE Limit for 

more than 30 consecutive clock-minutes. Furthermore, NERC states that Reliability 

Standard BAL-001-2 and accompanying definitions include the benefits of the Automatic 

Time Error Correction equation in the WECC-specific regional variance in Reliability 

Standard BAL-001-1.77 The Reliability Standard and related reporting requirements are 

applicable to balancing authorities and regulation reserve sharing groups. 

50. Public Reporting Burden: Our estimate below regarding the number of 

respondents is based on the NERC Compliance Registry as of October17, 2014. 

According to the NERC Compliance Registry, there are 71 balancing authorities in the 

Eastern Interconnection, 34 balancing authorities in the Western Interconnection and 

one balancing authority in the Electric Reliability Council of Texas (ERCOT). The 

Commission bases individual burden estimates on the time needed for balancing 

authorities to develop tools needed to facilitate reporting that is required in the Reliability 

Standard. These burden estimates are consistent with estimates for similar tasks in other 

 76 NERC Petition at 12.

77 Id. at 2.
Docket No. RM14-10-000 - 30 -

Commission-approved Reliability Standards. The following estimates relate to the 

requirements for this final rule in Docket No. RM14-10-000. 

FERC-725R, modifications in Final Rule in RM14-10-000 Final Rule78

Number of 

Respondents

(1)

Annual 

Number of 

Responses 

per 

Respondent

(2)

Total 

Number 

of 

Responses 

(1)*(2)=(3)

Average 

Burden 

& Cost 

Per 

Response

(4)

Total 

Annual 

Burden 

Hours & 

Total 

Annual 

Cost79

(3)*(4)=(5)

Cost per 

Respondent

($)

(5)÷(1)

BA/RRSG:80

Update and 

Maintain 

Energy 

Management 

Systems

106 1 106 8 hours 

per 

response

$522 (8 x 

$65.34)

848 

$55,332

$522

BA:Record 

Retention81

106 1 106 4

$118

424

$12,508

$118

TOTAL 212 640 1,272

$67,840

$640

 78 Reliability Standard BAL-001-2 applies to balancing authorities and regulation 

reserve sharing groups. However, the burden associated with the balancing authority 

complying with Requirement R1 is not included within this table because the 

Commission accounted for it under Commission-approved Reliability Standards BAL001-1.

79 The estimated hourly cost (salary plus benefits) of $98.17 is based on Bureau of 

Labor Statistics (BLS) information of May 2013 (and available at:

http://www.bls.gov/oes/current/naics2_22.htm) and is the average for an electrical 

engineer (NAICS 17-2071; $65.34/hour) and a lawyer (NAICS 23-1011; $128.76). 

80 BA=Balancing Authority; RRSG=Regulation Reserve Sharing Group.

81 The $29.52/hour estimate for salary plus benefits is based on the BLS data of 

May 2013 for a file clerk (NAICS 43-4071)..
Docket No. RM14-10-000 - 31 -

Title: FERC-725R Mandatory Reliability Standards: Resource and Demand Balancing 

(BAL) Reliability Standards.

Action: Proposed revision.

OMB Control No.: 1902-0268.

Respondents: Businesses or other for-profit institutions; not-for-profit institutions.

Frequency of Responses: On Occasion.

Necessity of the Information: This Final Rule approves Reliability Standard BAL-001-2 

pertaining to requiring balancing authorities to operate such that its clock-minute average 

reporting ACE does not exceed its clock-minute Balancing Authority ACE Limits for 

more than 30 consecutive clock-minutes. Requirement R2 provides each balancing 

authority a dynamic ACE limit that is a function of Interconnection frequency. 

Reliability Standard BAL-001-2 will provide dynamic limits that are balancing authority 

and Interconnection-specific. In addition, these ACE limits are based on identified 

Interconnection frequency limits to ensure the Interconnection returns to a reliable state 

when an individual balancing authority’s ACE or Interconnection frequency deviation 

contributes undue risk to the Interconnection. 

Internal Review: The Commission has reviewed Reliability Standard BAL-001-2 and 

has determined that it is necessary to implement section 215 of the FPA. The 

requirements of Reliability Standard BAL-001-2 should conform to the Commission’s 

expectation for generation and demand balance throughout the Eastern and Western 

Interconnections as well as within the ERCOT Region.
Docket No. RM14-10-000 - 32 -

51. Interested persons may obtain information on the reporting requirements by 

contacting the following: Federal Energy Regulatory Commission, 888 First Street, NE 

Washington, DC 20426 [Attention: Ellen Brown, Office of the Executive Director, 

e-mail: DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873].

Comments on the requirements of this rule may also be sent to the Office of Information 

and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503

[Attention: Desk Officer for the Federal Energy Regulatory Commission, phone: 

(202) 395-4638, fax: (202) 395-7285]. For security reasons, comments to OMB should 

be submitted by e-mail to: oira_submission@omb.eop.gov. Comments submitted to 

OMB should include FERC-725R and Docket Number RM14-10-000.

VI. Environmental Analysis

52. The Commission is required to prepare an Environmental Assessment or an 

Environmental Impact Statement for any action that may have a significant adverse effect 

on the human environment.82 The Commission has categorically excluded certain actions 

from this requirement as not having a significant effect on the human environment. 

Included in the exclusion are rules that are clarifying, corrective, or procedural or that do 

not substantially change the effect of the regulations being amended.83 The actions here 

fall within this categorical exclusion in the Commission’s regulations.

 82 Regulations Implementing the National Environmental Policy Act of 1969, 

Order No. 486, FERC Stats. & Regs., Regulations Preambles 1986-1990 ¶ 30,783 (1987).

83 18 C.F.R. 380.4(a)(2)(ii).
Docket No. RM14-10-000 - 33 -

VII. Regulatory Flexibility Act Certification

53. The Regulatory Flexibility Act of 1980 (RFA)84 generally requires a description 

and analysis of proposed rules that will have significant economic impact on a substantial 

number of small entities. The NOPR stated that, as shown in the information collection 

section, Reliability Standard Reliability Standard BAL-001-2 applies to 106 entities. 

Comparison of the applicable entities with the Commission’s small business data 

indicates that approximately 23 are small business entities. 85 Of these, the Commission 

estimates that approximately five percent, or one of these small entities, will be affected 

by the new requirements of Reliability Standard BAL-001-2. 

54. In the NOPR, the Commission estimated that the small entities that will be 

affected by proposed Reliability Standard BAL-001-2 will incur one-time compliance 

cost up to $109,180 (i.e., the cost of updating and maintaining energy management 

systems), resulting in cost of approximately $1,030 per balancing authority and/or 

Regulation Reserve Sharing Groups. The Commission has revised the cost for small 

entities that will be affected by Reliability Standard BAL-001-2 and estimates that small 

entities will incur a one-time compliance cost up to $55,332 (i.e., the cost of updating and 

maintaining energy management systems), resulting in cost of approximately $522 per 

balancing authority and/or Regulation Reserve Sharing Group. These costs represent an 

estimate of the costs a small entity could incur if the entity is identified as an applicable 

entity. The Commission does not consider the estimated cost per small entity to have a 

 84 5 U.S.C. 601-612.

85 This figure constitutes 21.4 percent of the total number of affected entities.
Docket No. RM14-10-000 - 34 -

significant economic impact on a substantial number of small entities. The Commission 

did not receive any comments regarding this aspect of the NOPR. Based on the above, 

the Commission certifies that this Final Rule will not have a significant economic impact 

on a substantial number of small entities. Accordingly, no regulatory flexibility analysis 

is required. 

VIII. Document Availability

55. In addition to publishing the full text of this document in the Federal Register, the 

Commission provides all interested persons an opportunity to view and/or print the 

contents of this document via the Internet through the Commission's Home Page 

(http://www.ferc.gov) and in the Commission's Public Reference Room during normal 

business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, NE, Room 2A, 

Washington, DC 20426.

56. From the Commission's Home Page on the Internet, this information is available 

on eLibrary. The full text of this document is available on eLibrary in PDF and 

Microsoft Word format for viewing, printing, and/or downloading. To access this 

document in eLibrary, type the docket number excluding the last three digits of this 

document in the docket number field.

57. User assistance is available for eLibrary and the Commission’s website during 

normal business hours from the Commission’s Online Support at (202) 502-6652 (toll 

free at 1-866-208-3676) or email at ferconlinesupport@ferc.gov, or the Public Reference 

Room at (202) 502-8371, TTY (202) 502-8659. E-mail the Public Reference Room at 

public.referenceroom@ferc.gov.
Docket No. RM14-10-000 - 35 -

IX. Effective Date and Congressional Notification

58. This Final Rule is effective [INSERT DATE 60 days after publication in the

FEDERAL REGISTER]. The Commission has determined, with the concurrence of the 

Administrator of the Office of Information and Regulatory Affairs of OMB, that this rule 

is not a “major rule” as defined in section 351 of the Small Business Regulatory 

Enforcement Fairness Act of 1996.86 The Commission will submit the final rule to both 

houses of Congress and to the General Accountability Office.

By the Commission.

( S E A L )

Nathaniel J. Davis, Sr.,

Deputy Secretary.

 86 See 5 U.S.C. 804(2).