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The Commission proposed to approve Reliability Standard BAL-002-2 (Disturbance Control Standard-Contingency Reserve for Recovery from a Balancing Contingency Event) submitted by the North American Electric Reliability Corporation (NERC). Proposed Reliability Standard BAL-002-2 is designed to ensure that applicable entities balance resources and demand and return their Area Control Error to defined values following a Reportable Balancing Contingency Event. In addition, the Commission proposed to direct NERC to modify Reliability Standard BAL-002-2 to address concerns related to the possible extension or delay of the periods for Area Control Error recovery and contingency reserve restoration. The Commission also proposed to direct NERC to address a reliability gap regarding megawatt losses above the most severe single contingency (Docket No. RM16-7-000).