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December 16, 2015 VIA ELECTRONIC FILING Ms. Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, D.C. 20426 Re: Informational Filing, Frequency Response Annual Analysis Docket No. RM13-11-000 Dear Ms. Bose: The North American Electric Reliability Corporation (“NERC”) hereby submits its 2015 Frequency Response Annual Analysis report for the administration and support of Reliability Standard BAL-003-1 – Frequency Response and Frequency Bias Setting (“Report”). The Report attached hereto provides an update to the statistical analyses and calculations contained in the 2012 Frequency Response Initiative Report included as Exhibit F to the March 29, 2013 NERC petition for approval of proposed Reliability Standard BAL-003-1, and the 2014 Report submitted in this docket on March 20, 2015. Specifically, the attached Report contains the analysis and annual recommendations for the calculation of the Interconnection Frequency Response Obligations (IFROs). The Report also analyzes: (i) frequency events and interconnection frequency characteristics for the period between January 1, 2012 through December 31, 2014, in order to determine appropriate adjustment factors for calculating the IFROs for the 2016 operational year (December 2015 through November 2016); and (ii) trends in primary Frequency Response sustainability or withdrawal throughout frequency events. Dynamic simulations of the Eastern, Western, and ERCOT Interconnections for the recommended IFROs showed those levels of primary Frequency Response to be adequate to avoid tripping of the first stage of the interconnection UFLS systems. Light-load cases were used for the analyses, as proposed in Paragraph 41 of the NOPR. 1 Evaluation of field trial data regarding the use of a linear regression method for calculating the Balancing Authority Frequency Response Measure is not included in the Report, but is continuing. 1 Frequency Response and Frequency Bias Setting Reliability Standard, Notice of Proposed Rulemaking, 144 FERC ¶ 61,057 (2013) (NOPR).

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