Power System Balancing Authority Innovation

Synopsis:  Electricity, once generated, follows the “path of least resistance” to a load that immediately consumes the electricity.  Since electricity cannot generally be routed in a specific direction, the electric system must be monitored in real time, 24 hours a day and 365 days a year, to ensure a consistent and ample supply of electricity.  This monitoring is performed by Balancing Authorities pursuant to standards developed by the North American Electric Reliability Corporation (NERC) and overseen by the Federal Energy Regulatory Commission (FERC) in the United States and governmental authorities in Canada.  These standards require all loads and generators to be managed by individual Balancing Authorities so that the bulk electric system, as a whole, is continuously in proper balance, as the term implies.  In the United States, the Energy Policy Act of 2005 made compliance with approved standards mandatory on all users, owners and operators of the bulk-power system. 

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Article filed under FERC docket number RM10-11-000