As the electric power industry becomes more competitive, new and innovative techniques will be required to produce electric power reliably and economically. The need for control areas to properly regulate generation while meeting the load requirement continues to be one of the more important control area functions in modern power system operations. The cost of control and the abilities of areas to perform rapid control response varies significantly throughout the North American Electric Reliability Council (NERC). Beginning in January 1995, Houston Lighting and Power Company began providing regulation service to the Lower Colorado River Authority control area to assist it in meeting the control performance standards established by NERC. This bold concept has enabled one control area to assist another with its obligations while maintaining a true independent operation within each area. The authors describe the technical approach to the concept.
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