In January 2014, the Federal Energy Regulatory Commission (FERC) approved Reliability Standard BAL-003-01 that was submitted by NERC. Among other things, this standard requires Balancing Authorities (BA) to meet an annual frequency response measure. Compliance with this requirement began Dec. 1, 2019.
This standard requires each BA or reserve sharing group to demonstrate that it meets the required measure through the submission of a compliance form each year after the conclusion of the compliance year to NERC/Western Electricity Coordinating Council (WECC). These NERC/WECC forms reflect that compliance with the obligation can be met through Transferred Frequency Response, which is a compliance instrument that allows one BA to transfer its frequency response to another BA for purposes of reporting compliance with the standard.
Based on recent observations of performance during frequency disturbance events, the California ISO will contract for 9 megawatts (MW) per 0.1 hertz (Hz) of additional Transferred Frequency Response capability to meet its frequency response obligation for the period, beginning Jan. 1, 2020 and ending Nov. 30, 2020. The ISO is relying on bids received through a competitive solicitation for Transferred Frequency Response conducted earlier this year. Subject to the acceptance of Transferred Frequency Response Agreements by FERC, the successful bidders obligation will commence Jan. 1, 2020. 
