Contingency Reserve & Disturbance Recovery (BAL-002) on the NERC RC Exam: Test Tips and 5 Practice Questions

A unit trips at 2 a.m. and ACE falls off a cliff. Who has to bring it back, and how fast? That is the heart of BAL-002, and it shows up on the RC exam because Reliability Coordinators have to understand what the Balancing Authority owes the Interconnection after a disturbance. Know the numbers and know who owns the obligation.

Test Tips

  1. Know the owner. Contingency Reserve obligations sit with the Balancing Authority or Reserve Sharing Group, not the RC. If an answer choice puts the burden on the RC, it is a distractor.
  2. Memorize 15 and 90. ACE recovery after a Reportable Balancing Contingency Event is a 15-minute clock. Restoring the Contingency Reserve you used is a 90-minute clock that starts when the recovery period ends.
  3. MSSC drives the size. Most Severe Single Contingency is the largest single contingency the BA could lose (generator, import, or load). Contingency Reserve is sized against it.
  4. Reportable means 80%. The default reportable threshold is 80 percent of MSSC. Smaller events are not reportable unless a lower threshold has been set.
  5. Do not mix reserve types. Regulating reserve handles moment-to-moment ACE. Contingency Reserve responds to sudden loss. Questions love to swap them.
  6. Sharing is allowed. A Reserve Sharing Group can meet the obligation collectively. Watch for questions that assume every BA must carry its own full MSSC.

5 Practice Questions

Question 1

After a Reportable Balancing Contingency Event, within what period must the Balancing Authority recover ACE under BAL-002?

  • A. 5 minutes
  • B. 10 minutes
  • C. 15 minutes
  • D. 30 minutes

Question 2

The Contingency Reserve Restoration Period under BAL-002 is, at most, how long?

  • A. 30 minutes
  • B. 60 minutes
  • C. 90 minutes
  • D. 120 minutes

Question 3

Which entity carries the primary responsibility for maintaining Contingency Reserve to respond to Balancing Contingency Events?

  • A. The Reliability Coordinator
  • B. The Balancing Authority or Reserve Sharing Group
  • C. The Transmission Owner
  • D. The Planning Coordinator

Question 4

What does Most Severe Single Contingency (MSSC) represent?

  • A. The largest single generating unit on the Interconnection
  • B. The largest single contingency the Balancing Authority could experience, such as loss of a unit, import, or load
  • C. The total of all contingencies in the BA area
  • D. The peak forecast load for the day

Question 5

A BA loses a resource equal to 90 percent of its MSSC. Using the default threshold, how is this event classified?

  • A. Not reportable
  • B. A Reportable Balancing Contingency Event
  • C. A Frequency Response event only
  • D. An Energy Emergency Alert

Answer Key & Explanations

  1. C. BAL-002 sets a 15-minute Contingency Event Recovery Period for returning ACE to the required level after a reportable event.
  2. C. The Contingency Reserve Restoration Period is 90 minutes, beginning at the end of the recovery period.
  3. B. BAL-002 places the obligation on the Balancing Authority or Reserve Sharing Group. The RC coordinates reliability but does not carry the BA's reserve.
  4. B. MSSC is the most severe single contingency the BA could lose, and it is the basis for sizing Contingency Reserve.
  5. B. At 90 percent of MSSC the loss exceeds the default 80 percent threshold, so it is a Reportable Balancing Contingency Event. Verify any lower threshold in the current effective BAL-002 at nerc.com.

Always confirm the current effective version of BAL-002 at nerc.com before the exam.

Ready to Pass?

BAL-002 puts the obligation on the BA or Reserve Sharing Group, with 15-minute ACE recovery followed by a 90-minute Contingency Reserve Restoration Period. Keep those responsibilities and intervals clear as you prepare, and take part in the free 30-day RC study sprint: https://epgsolutions.services/pages/free-30-day-rc-study-sprint

FREE EPG RESOURCES

Give your next RC study session a plan.

Get the free 30-Day RC Study Sprint Plan and organize your preparation around a clear study schedule.

Get the free RC study plan → See all free resources