Each month, we share some of the terminology used by the North American Electric Reliability Corporation. You’ll see these terms in reports and other coverage of the electric power industry, so it’s a good idea to brush up on exactly what NERC means.

 

The amount of firm transmission transfer capability preserved for Load-Serving Entities (LSEs), whose loads are located on a Transmission Service Provider’s system. That allows LSEs to access generation from interconnected systems to meet generation reliability requirements. Having that margin makes it possible for an LSE to reduce its installed generating capacity below what it might otherwise have needed to meet reliability requirements  without interconnections. An LSE’s Capacity Benefit Margin is intended to be used by the LSE only in times of emergency shortages in generation. 

 

These emergencies exist when a Balancing Authority Area’s operating capacity, plus firm purchases from other systems (as affected by transfer capability), is inadequate to meet the demand plus regulating requirements. 

 

This refers to the amount of capacity deployed by the Balancing Authority to meet the Disturbance Control Standard and other NERC and Regional Reliability Organization contingency requirements.