What is the primary function of Automatic Generation Control (AGC) related to inadvertent interchange?

The primary function of Automatic Generation Control (AGC) is to minimize inadvertent interchange among Balancing Authority areas. AGC continuously monitors the balance between electricity supply and demand and adjusts generation accordingly to maintain system frequency and reliability. Inadvertent interchange refers to unintentional transactions of power between different balancing areas that can occur due to generation and load imbalances. By controlling the output of generation resources automatically, AGC helps correct these imbalances in real-time, ensuring that each balancing authority remains within its specified interchange limits and thus minimizing inadvertent flows. This function is crucial for maintaining the stability of the power grid and ensuring an efficient and reliable operation of interconnected systems.

In contrast, maximizing power generation, reducing operational costs, and enhancing communication between operators may be beneficial in their own right but do not directly address the specific function of minimizing inadvertent interchange, which is central to the operation of AGC.