Consolidated Balancing Authority

Consolidated Balancing Authority

A Consolidated Balancing Authority (CBA) is necessary for an Operating Reserves market to work. A Balancing Authority (BA) ensures that at every moment in time, and in plans for future times, there is sufficient generation to reliably supply electricity. SPP's legacy BAs included investor-owned utilities, public power, municipalities and electric cooperatives.

SPP has combined these BAs into one entity. SPP serves as the CBA for the entire market footprint. As the CBA, SPP balances the region's supply and demand, maintains frequency and maintains electricity flows between adjacent BAs. The CBA must meet numerous North American Electric Reliability Corporation (NERC) standards and criteria and has an obligation to NERC to meet performance standards.

The CBA provides economic incentives and structure for the most efficient regional grid operation. The consolidated structure offers market participants more reserve resources from which to draw, allowing the region to more efficiently meet NERC standards. The CBA facilitates centralized unit commitment, in which the Day-Ahead market determines what generation should be utilized for maximum regional benefit.

Consolidated Balance Authority