In January 2014, the Federal Energy Regulatory Commission (FERC) approved Reliability Standard BAL-003-01 that was submitted by North American Electric Reliability Corporation (NERC). In addition, this standard requires Balancing Authorities (BA) to meet an annual frequency response measure. Since then the Reliability Standard has been revised to BAL-003-2 and made effective on Dec. 1, 2020.

This standard requires each BA or frequency response 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 obligation partially to another BA for purposes of reporting compliance with the standard. The California ISO is seeking to purchase up to 100 MW per 0.1 Hz of Transferred Frequency Response to meet its frequency response obligation for the compliance period, beginning Dec. 1, 2021 and ending Nov. 30, 2022.

The submittal deadline for transferred frequency response bids and proof of capability is midnight Pacific Standard Time on Tuesday, June 8, 2021.