WECC Standard Bal-002-WECC-1

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					                              WECC Standard BAL-002-WECC-1
                                    Contingency Reserves
                              Version 3 – Draft for June 2, 2011



                         Completed Actions                             Completion Date

1. Post Draft Standard for initial industry comments                  September 14, 2007

2. Drafting Team to review and respond to initial industry comments   November 20, 2007

3. Post second Draft Standard for industry comments                   November 20, 2007

4. Drafting Team to review and respond to industry comments           January 25, 2008
5. Post Draft Standard for Operating Committee approval               January 25, 2008
6. Operating Committee approved proposed standard                     March 6, 2008
7. Post Draft Standard for WECC Board approval                        March 1 2, 2008
8. Post Draft Standard for NERC comment period                        April 14, 2008
9. WECC Board approved proposed standard                              April 16, 2008
10. NERC comment period ended                                         May 20, 2008
11. Drafting Team completes review and consideration of NERC industry May 30, 2008
      comments
12. NERC Board approved the request                                   June 2008

Request FERC approval                                                 June 2008

13. Drafting Team meet to refine proposed Standard                    January 2011

14. Version 1 posted for comment 1/17/2011.                           January 2011

15. Drafting Team met to discuss Comments                             March 9, 2011

16. Version 1 Responses posted                                        March 21, 2011

16. Version 2 Posted                                                  March 11, 2011

17. Drafting Team met to discuss Comments                             April 13, 2011

18. Version 2 Responses posted                                        April 14, 2011



Developed as WECC-0083                                                                     1
                               WECC Standard BAL-002-WECC-1
                                     Contingency Reserves
                               Version 3 – Draft for June 2, 2011


  Anticipated Actions
20. OC Special Vote – Failed                                        May 19, 2011




Developed as WECC-0083                                                             2
                                  WECC Standard BAL-002-WECC-1
                                        Contingency Reserves
                                  Version 3 – Draft for June 2, 2011


Description of Current Draft/ Compliance with FERC Order 740 Remand:

This document identifies the quantity, components, and resources available to meet Contingency
Reserves.

This document has been reformatted and comports with current drafting conventions per NERC
request.

In FERC’s Order 740 remand regarding WECC’s BAL-002-WECC-1, FERC mandated that
WECC address the following concerns:

       Return to the 60 Minute restoration window
       Explicit Provision for Demand-side Resources
       Removing the Terms Spinning and Non-Spinning Reserves
       Clarification that an EEA 3 is required before using firm load as a contingency reserve
        resource
       Consider QF concerns regarding Behind-the-Meter Load
       Consider NV Energy’s concerns over Equitable Assignment of Reserve Allocations

Below please find WECC’s response to these specific concerns.

                           Return to the 60 Minute Restoration Window
On remand, FERC ordered WECC to either return to the original 60 minute restoration period or
provide additional supporting evidence for the 90 minute restoration period. FERC Order 740, P.
28. To comply with this mandate, WECC has replaced all references to the 90 minute window
with the mandated 60 minute window. (See M1 and M2)

Iterative Filing for a 90 Minute Restoration Window

In the instant filing, WECC sought to return to a 90 minute restoration period; however, after
application of due deference for WECC expertise as required of FERC under section 215(d)(2)
of the Federal Power Act, FERC concluded that the evidence provided by WECC was
insufficient to support that request. FERC Order 740, P. 14 and 261. WECC will continue to
compile the required additional technical evidence to support the 90 minute window. Upon
obtaining technical data sufficient to withstand FERC’s scrutiny, WECC will file an iterative
standard reflecting a request to change to the 90 minute window based on additional technical
supportive data.

In the initial filing of WECC’s BAL-STD-002-0, FERC weighed WECC’s supporting data as
required under section 215(d)(2) of the FPA, and concluded that BAL-STD-002-0 should be

1
 See also FERC’s Order Approving Regional Reliability Standards for the Western Interconnection and Directing
Modifications, RR07-11-000, June 8, 2007. P. 53. http://www.ferc.gov/eventcalendar/Files/20070608171203-
RR07-11-000.pdf

Developed as WECC-0083                                                                                          3
                             WECC Standard BAL-002-WECC-1
                                   Contingency Reserves
                             Version 3 – Draft for June 2, 2011

enforceable as its 60 minute restoration period was more stringent than NERC’s BAL-002-0’s 90
minute restoration period.

                       Explicit Provision for Demand-Side Resources

“On remand, the Commission [directed WECC to modify BAL-002-WECC-1 to] explicitly
provide that demand-side management technically capable of providing [contingency reserves]
may be used as a resource for both spinning and non-spinning contingency reserves” and to
“ensure comparable treatment of demand-side management with conventional generation.”
FERC Order 740, P. 61; See also FERC Order 693.

To meet these two mandates, BAL-002-WECC-1 (Version 3) explicitly includes in Requirement
2.3, section 2 (AKA: bullet 2) that demand-side management can be used as a resource for
contingency reserves. To ensure comparable treatment of demand-side management with
conventional generation, WECC has removed all reference to Spinning Reserve and Non-
Spinning Reserves and substituted the correct terms “Operating Reserve – Spinning” and
“Operating Reserve-Supplemental” at FERC’s request.

                 Removing the Terms Spinning and Non-Spinning Reserves

For clarity, the terms Spinning Reserve and Non-Spinning Reserves were removed from the
standard as, by definition, they only include generation thereby excluding demand-side
management in violation of FERC Order 693. Further, “In its order approving WECC’s current
regional Reliability Standard, the Commission determined that regional definitions should
conform to the definitions set forth in the NERC Glossary, unless a specific deviation has been
justified. WECC has not justified the need for a separate, regional definition of Spinning
Reserve. Accordingly, we direct WECC to remove this regional definition from the NERC
Glossary.” (Emphasis added.) FERC Order 740, P. 62.

  Clarification that an EEA 3 is required before using firm load as a contingency reserve
                                         resource

“On remand, [FERC directed] WECC to develop revised language to clarify” that an Energy
Emergency 3 is required before a Balancing Authority or Reserve Sharing Group can curtail firm
load. P. 48-49. To meet this mandate, WECC has clarified in R2.3, section 3 (AKA: bullet 3) of
Version 3 that firm load may only be used as a contingency reserve resource in response to an
Energy Emergency Level 3 (Alert 3 – Firm load interruption imminent or in progress) that has
been declared by the reliability Coordinator.

         FERC identified the Energy Emergency 3 – not the WECC drafting team

For clarity, the WECC drafting team did not select the EEA 3; FERC mandated it. To the extent
the industry believes changes should be made to EOP-002-2.1 to ensure a uniform understanding
and application, those changes are outside of the scope of this drafting team. The proper means
to address that change would be through the filing of a NERC Standards Authorization Request .


Developed as WECC-0083                                                                            4
                                 WECC Standard BAL-002-WECC-1
                                       Contingency Reserves
                                 Version 3 – Draft for June 2, 2011


On remand, FERC held that, similar to NERC’s BAL-002-0, BAL-002-WECC-1 “does not allow
balancing authorities or reserve sharing groups to curtail firm load except in compliance with
NERC’s Reliability Standard EOP-002-2.1.” FERC Order 740, P. 48. NERC and WECC
concurred. P. 47. FERC further stated, it would be a violation of EOP-002-2.1 if balancing
authorities or reserve sharing groups outside of WECC planned to shed firm load before the
reliability coordinator issued a level 3 energy emergency alert.” (Emphasis added.) P. 49.
Similarly, under BAL-002-WECC-1,

        “entities would not be authorized to shed firm load unless the applicable reliability
        coordinator had issued a level 3 energy emergency alert pursuant to EOP-002-2.1.
        (Emphasis added) Thus, balancing authorities and reserve sharing groups within WECC
        are subject to the same restrictions regarding the use of firm load as contingency reserve
        as balancing authorities elsewhere operating under the continent-wide Reliability
        Standard. On remand, we direct WECC to develop revised language to clarify this point.”
        P. 49.

                Consider QF concerns regarding Behind-the-Meter Generation

On remand, FERC directed WECC “to consider the concerns raised by the QF Parties…” P. 66.
Specifically, the QF Parties contend that “net generation” (a component of WECC’s
Interpretation of Load Responsibility2) is not defined; yet, it is a predicate to determining the
amount of contingency reserves. Further, they contend that “consistent with Commission
precedent, the definition of net generation should not include generation used to serve load
behind the meter.” P. 64.

To meet this mandate, WECC has clarified how behind-the-meter generation should be treated
for purposes of BAL-002-WECC-1. (Compare the filed version of BAL-002-WECC-1 with the
proposed Version 3; specifically, see R1.1 and the associated M1.) Further, a explained in the
initial filing, WECC has an existing practice for determining “Load Responsibility” which was
approved by the WECC Board of Directors September 7, 2007, placing the responsibility
on the Balancing Authorities to determine the amount of and assure that adequate
contingency reserves are provided. (See WECC Interpretation of Load Responsibility
(9/7/07) available at:
http://www.wecc.biz/Standards/Interpretations/Interpretation%20of%20Load%20Respon
sibility.pdf.)

Rather than craft a new NERC Glossary term, the drafting team considered the concerns of the
QF Parties and embedded specific language into the standard that addresses treatment of the
Parties’ concerns. Specifically, net generation may be adjusted by excluding behind-the-meter
generation from the calculation.


2
 “WECC Interpretation of Load Responsibility” at:
http://www.wecc.biz/Standards/Interpretations/Interpretation%20of%20Load%20Responsibility.pdf

Developed as WECC-0083                                                                              5
                                WECC Standard BAL-002-WECC-1
                                      Contingency Reserves
                                Version 3 – Draft for June 2, 2011

    Consider NV Energy’s concerns over Equitable Assignment of Reserve Allocations

On remand, [FERC directed WECC] to consider the concerns raised by…NV Energy.” P. 66.
Specifically,

       “NV Energy expresses concern that [the standard] does not assign any responsibility or
       obligations for generator owners and generator operators. NV Energy states that a
       balancing authority does not have ownership or operational control over significant
       shares of generating resources within its footprint. Thus, NV Energy contends, a
       balancing authority may be required to carry a disproportionate share of the contingency
       reserve obligation within the Western Interconnection.” P.65.
NV Energy requests to have the drafting team “determine whether a more equitable assignment
of reserve obligation among the registered entities can be achieved…”3 (Emphasis added.) The
drafting team considered this to be more related to equity than reliability. As such, after a review
of the functions of each of the applicable entities, the team concluded that handling of reliability-
related services was more appropriately handled by the Balancing Authority/Reserve Sharing
Group as opposed to the Generator Owner/Generator Operator that only incur reliability-related
obligations via contract or other arrangement. (Compare Tasks and Functions of each entity as
stated in the NERC Functional Model, Version 5.)

Implementation Plan

Affected Reserve Sharing Groups are advised to coordinate with one another to adjust contracts,
business practices or protocols in order to target implementation on the projected effective date.
The requested Effective Date has been extended from the first day of the first quarter following
approval (Version 2) to the first day of the second quarter following approval (Version 3). The
extension is requested as contracts are unlikely to be altered until a date certain is identified. The
first day of the first quarter following approval may be insufficient time to complete
negotiations.




3
 Comments of Sierra Pacific Power Company and Nevada Power Company on Notice of Proposed Rulemaking,
Page 5, May 24, 2010. http://ferris.ferc.gov/IDMWS/common/opennat.asp?fileID=12351726


Developed as WECC-0083                                                                                 6
                              WECC Standard BAL-002-WECC-1
                                    Contingency Reserves
                              Version 3 – Draft for June 2, 2011

Introduction


    1. Title:     Contingency Reserves

    2. Number: BAL-002-WECC -1


    3. Purpose: To provide Contingency Reserve to restore the balance between resource and
                demand following forced outages of generation or transmission equipment.

    4. Applicability:


       4.1        Balancing Authority

       4.2        Reserve Sharing Group (Balancing Authorities may meet the requirements of
                  Bal-002-WECC-1 through participation in a Reserve Sharing Group.)

    5. Effective Date:        On the first day of the second quarter, after receipt of applicable
                              regulatory approval.

B. Requirements

    R1. Each Reserve Sharing Group and each Balancing Authority that is not a member of a
         Reserve Sharing Group, shall maintain as a minimum Contingency Reserve that is the
         sum of the following: [Violation Risk Factor: Medium] [Time Horizon: Real time
         operations]

         1.1.    The greater of the following:

                    An amount of reserve equal to the loss of the most severe single
                     contingency; or

                    An amount of reserve equal to the sum of three percent of the Load and
                     three percent of net generation that is physically located inside the
                     Balancing Authority’s Area adjusted for generation that is Dynamically
                     Transferred into or out of the Balancing Authority’s Area.

                              o Contingency Reserves for Dynamically Transferred generation
                                are procured by the Sink Balancing Authority (AKA: the
                                attaining Balancing Authority). 4


4
 “All BAs involved account for the power exchange and associated transmission losses as actual
interchange between the BAs, both in their ACE equations and throughout all of their energy

Developed as WECC-0083                                                                              7
                                 WECC Standard BAL-002-WECC-1
                                       Contingency Reserves
                                 Version 3 – Draft for June 2, 2011



                                 o Contingency Reserves for Dynamically Scheduled generation,
                                   implemented through the use of an Interchange Transaction,
                                   are procured by the Source Balancing Authority (AKA: native
                                   balancing authority).5

            1.2.     If the Source Balancing Authority designates an Interchange Transaction(s) as
                     part of its Operating Reserve - Supplemental, the Sink Balancing Authority shall
                     carry an amount of additional Operating Reserve - Supplemental equal to the
                     Interchange Transaction(s). This type of transaction cannot be designated as
                     Operating Reserve - Spinning by the source Balancing Authority. If the Source
                     Balancing Authority does not designate the Interchange Transaction as part of
                     its Contingency Reserve, the Sink Balancing Authority is not required to carry
                     any additional Contingency Reserves under this Requirement.

              1.3.   If the Sink Balancing Authority is designating an Interchange Transaction(s) as
                     part of its Contingency Reserve either Operating Reserve – Spinning or –
                     Operating Reserve - Supplemental, the Source Balancing Authority shall increase
                     its Contingency Reserves equal in amount and type, to the capacity transaction
                     (s) where the Sink Balancing Authority is designating the transaction(s) as a
                     resource to meet its Contingency Reserve requirements. These types of
                     transactions could be designated as either Operating Reserve - Spinning or
                     Operating Reserve - Supplemental. If designated as Operating Reserves -
                     Spinning, all of the requirements of section 2.1 & 2.2 must be met.

      R2.     Each Reserve Sharing Group and each Balancing Authority that is not a member of a
              Reserve Sharing Group, shall maintain at least half of the Contingency Reserve in 1.1
              as Operating Reserve – Spinning . Any Operating Reserve - Spinning specified in R1
              shall meet each of the following requirements. [Violation Risk Factor: Medium] [Time
              Horizon: Real time operations]

              2.1. Immediately and automatically responds proportionally to frequency deviations,
                    e.g. through the action of a governor or other control systems; and

              2.2. Capable of fully responding within ten minutes; and


accounting processes.” (Emphasis added.) NERC Dynamic Transfer Reference Guide, Version 2. Chapter 5 –
Pseudo Ties. http://www.nerc.com/docs/oc/is/IS_Dynamic_Transfer_Guidelines_UPDATED_06-02-10.pdf

5
    “Dynamic schedules are to be accounted for as interchange schedules by the source, sink, and
contract intermediary BA(s), both in their respective ACE equations, and throughout all of their
energy accounting processes.” (Emphasis added.) Dynamic Transfer Reference Guide, Version 2. Chapter 4
– Dynamic Transfers. http://www.nerc.com/docs/oc/is/IS_Dynamic_Transfer_Guidelines_UPDATED_06-02-
10.pdf

Developed as WECC-0083                                                                               8
                             WECC Standard BAL-002-WECC-1
                                   Contingency Reserves
                             Version 3 – Draft for June 2, 2011

          2.3. Be comprised of any of the following acceptable types of reserves:

                o Operating Reserve – Spinning;

                o 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;


                o Load, other than load defined in the immediately previous section, that is
                  deployable in response to an Energy Emergency Alert (EEA) Level 3 (Alert
                  3 — Firm load interruption imminent or in progress) declared by the
                  Reliability Coordinator.

                o Interchange Transactions designated by the source Balancing Authority as
                  –Operating Reserve - Supplemental contingency reserve;

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

                o An amount of off-line generation which can be synchronized and
                  generating.zrr44

C. Measures

   M1. Each Reserve Sharing Group and each Balancing Authority that is not a member of a
       Reserve Sharing Group shall provide evidence that it maintained 100% of required
       Contingency Reserve levels based upon data integrated over each clock hour, except
       within the first 60 minutes following an event requiring the activation of Contingency
       Reserves.

        For each hour, each Reserve Sharing Group and each Balancing Authority shall have
        and provide upon request their Contingency Reserve Requirement in MW, how the
        requirement was calculated, and the amount of Contingency Reserve available in MW.
        Evidence may include, but is not limited to, production of E-tags and/or contracts to
        document any transactions under Requirement 1, subset 1.2 and 1.3.

        For purposes of Requirement 1, subset 1.2, the calculation of net generation is gross
        generation minus station power. Net generation may be adjusted by excluding generation
        that both:

              (a) is located on the customer site or providing service to the customer’s site
              through arrangements as authorized by law (otherwise known as behind the meter


Developed as WECC-0083                                                                           9
                            WECC Standard BAL-002-WECC-1
                                  Contingency Reserves
                            Version 3 – Draft for June 2, 2011

             generation); and

             (b) has secured standby service effective within 10 minutes of the loss of the
             generator under terms approved by regulatory authority, or the load is curtailed
             concurrently with an outage of the generation serving the load.

         Generation that meets both (a) and (b) above would not have Contingency Reserves
         activated for the loss of the generator.

         Pseudo-tie arrangements transfer generation or load from the Balancing Authority in
         which it is physically located to a second Balancing Authority where it becomes
         electrically located for the purposes of calculating generation and load.


   M2. Each Reserve Sharing Group and each Balancing Authority that is not a member of a
       Reserve Sharing Group shall have and provide upon request evidence that it
       maintained at least 100% of minimum Contingency Reserve - Spinning required based
       upon data averaged over each clock hour, except within the first 60 minutes following
       an event requiring the activation of Contingency Reserves.

        For each hour, each Reserve Sharing Group or each Balancing Authority that is not a
        member of a Reserve Sharing Group shall have and provide upon request evidence that
        the Contingency Reserve - Spinning Requirement in MW and the amount of
        Contingency Reserve - Spinning available in MW that is automatically responsive to
        frequency and can be fully deployed in 10 minutes.

        Each Reserve Sharing Group or each Balancing Authority that is not a member of a
        Reserve Sharing Group shall have and provide upon request evidence that it used only
        the acceptable types of reserve for each hour to meet R2.

        Any Reserve Sharing Group or any Balancing Authority utilizing Load other than
        Interruptible Load shall have and produce upon request evidence demonstrating that the
        Balancing Authority requested an Energy Emergency Alert Level 3 prior to utilizing
        Load for Contingency Reserves.




Developed as WECC-0083                                                                          10
                            WECC Standard BAL-002-WECC-1
                                  Contingency Reserves
                            Version 3 – Draft for June 2, 2011


A. Compliance

   1. Compliance Monitoring Process

      1.1    Compliance Monitoring Responsibility

             Compliance Enforcement Authority

      1.2    Compliance Monitoring Period

             The Compliance Enforcement Authority may use one or more of the following
             methods to assess compliance:

             - Reports conducted quarterly

             - Spot check audits conducted anytime with 30 days notice given to prepare -
               Periodic audit as scheduled by the Compliance Enforcement Authority –
               Investigations

             - Other methods as provided for in the Compliance Monitoring Enforcement
               Program Reserve Sharing Groups and Balancing Authorities shall submit to
               their Compliance Enforcement Authority a Contingency Reserve verification
               report on or before the tenth business day following the end of each calendar
               quarter.

             1.2.1 Compliance Monitoring Period: One Clock Hour.

             1.2.2 The Performance reset Period is calendar quarter.

      1.3    Data Retention

             Reserve Sharing Groups and Balancing Authorities shall keep evidence for
             Measure M1 through M3 for three years plus current, or since the last audit,
             whichever is longer.

      1.4.   Additional Compliance Information
             1.4.1. This Standard shall apply to a Reserve Sharing Group that has registered
                    with the WECC as provided in Section 1.4.2, and each Balancing
                    Authority identified in the registration shall be responsible for compliance
                    with this Standard through its participation in the Reserve Sharing Group
                    and not on an individual basis.

             1.4.2. A Reserve Sharing Group may register as the Responsible Entity for

Developed as WECC-0083                                                                         11
                            WECC Standard BAL-002-WECC-1
                                  Contingency Reserves
                            Version 3 – Draft for June 2, 2011

                    purposes of compliance with this Standard by providing written notice to
                    the WECC (a) indicating that the Reserve Sharing Group is registering as
                    the Responsible Entity for purposes of compliance with this Standard, (b)
                    identifying each Balancing Authority that is a member of the Reserve
                    Sharing Group, and (c) 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 Section 1.4.2 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, (a) 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, (b) each Balancing Authority shall be solely responsible for
                   all penalties allocated to it according to its percentage of responsibility as
                   provided in subsection (a) of this Section 1.4.3, and (c) 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 (a) of this
                   Section 1.4.3 (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 Section 1.4.2 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 Section 1.4.2 shall be subject to this
                   Standard on an individual basis.




Developed as WECC-0083                                                                            12
                                WECC Standard BAL-002-WECC-1
                                      Contingency Reserves
                                Version 3 – Draft for June 2, 2011


     Table of Compliance Elements

R     Time       VRF                               Violation Severity Levels
     Horizon
                              Lower VSL         Moderate VSL            High VSL          Severe VSL

R1   Real-time Medium There shall be a        There shall be a       There shall be a   There shall be a
     Operations       Lower Level of          Moderate Level of      High Level of      Severe Level of
                      non-compliance if       non-compliance if      non-compliance     non-compliance if
                      there is one hour       there is one hour      if there is one    there is one hour
                      during a calendar       during a calendar      hour during a      during a calendar
                      month in which the      month in which         calendar month     month in which
                      Balancing               the Balancing          in which the       the Balancing
                      Authority’s or the      Authority’s or the     Balancing          Authority's or the
                      Reserve Sharing         Reserve Sharing        Authority’s or     Reserve Sharing
                      Contingency             Group’s                the Reserve        Group's
                      Reserve is less than    Contingency            Sharing Group’s    Contingency
                      100% but greater        Reserve is less        Contingency        Reserve is less
                      than or equal to        than 90% but           Reserve is less    than 70% of the
                      90% of the required     greater than or        than 80% but       required
                      Contingency             equal to 80% of        greater than or    Contingency
                      Reserve.                the required           equal to 70% of    Reserve.
                                              Contingency            the required
                                              Reserve.               Contingency
                                                                     Reserve.

R2   Real-time Medium There shall be a        There shall be a       There shall be a   There shall be a
     Operations       Lower Level of non      Moderate Level of      High Level of      Severe Level of
                      -compliance if there    non -compliance if     non -compliance    non -compliance if
                      is one hour during a    there is one hour      if there is one    there is one hour
                      calendar month in       during a calendar      hour during a      during a calendar
                      which the               month in which         calendar month     month in which
                      Balancing               the Balancing          in which the       the Balancing
                      Authority's or the      Authority's or the     Balancing          Authority's or the
                      Reserve Sharing         Reserve Sharing        Authority's or     Reserve Sharing
                      Group's Operating       Group's Operating      the Reserve        Group's
                      Reserve - Spinning      Reserve - Spinning     Sharing Group's    Operating
                      is less than 100%       is less than 90%       Operating          Reserve -
                      but greater than or     but greater than or    Reserve -          Spinning is less
                      equal to 90% of the     equal to 80% of        Spinning is less   than 70% of the
                      required Operating      the required           than 80% but       required
                      Reserve – Spinning.     Operating Reserve      greater than or    Operating
                                              – Spinning.            equal to 70% of    Reserve –
                                                                     the required       Spinning.

     Developed as WECC-0083                                                                    13
                                WECC Standard BAL-002-WECC-1
                                      Contingency Reserves
                                Version 3 – Draft for June 2, 2011

                                                                     Operating
                                                                     Reserve –
                                                                     Spinning.

R3   Real time Medium Not Applicable           Not Applicable        There shall be a   Not Applicable.
     Operations                                                      High Level of
                                                                     non-compliance
                                                                     if there is one
                                                                     hour during a
                                                                     calendar month
                                                                     in which the
                                                                     balancing
                                                                     Authority or
                                                                     Reserve Sharing
                                                                     Group used
                                                                     unacceptable
                                                                     resources for
                                                                     Contingency
                                                                     Reserves.


      Version History – Shows Approval History and Summary of Changes in the Action Field

        Version          Date                       Action                   Change Tracking

         1          January 17, 2011      Draft Version of Permanent          Version 1 posted
                                          Replacement Standard for           1/17/2011 through
                                               BAL-STD-002-0                     3/3/2011.

             2      March 11, 2011         “Purpose” adjusted, reserve        Version 2 posted
                                          restoration window adjusted,       3/11-2011 through
                                       calculation moved to the Measures         4/11/2011.




     Developed as WECC-0083                                                                      14

				
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