What type of service involves a Balancing Authority incorporating tie lines and schedules into its AGC/ACE equation?

The integration of tie lines and schedules into the Automatic Generation Control (AGC) and Area Control Error (ACE) equation represents a crucial function of balancing authorities. This process relates to how the system can maintain the balance between generation and load while considering external connections (tie lines) and predefined schedules.

The choice referring to overlap regulation service accurately encompasses the concept of managing generation outputs and demand across interconnected areas, effectively integrating external influences into the balancing authority's calculations. This ensures that the balancing authority can efficiently respond to variations in generation and demand while accounting for how these factors interact with neighboring systems.

Other options do not directly address the specific integration of external schedules and controls in the balancing authority's operations. For instance, frequency response service pertains to the system's ability to manage frequency deviations but does not explicitly involve tie lines and schedules in the same manner as overlap regulation service. Similarly, load balancing service broadly indicates the management of supply and demand but lacks the specific ties to external controls and error calculations. Frequency regulation service relates to maintaining electrical frequency but may not cover the intricacies of incorporating external tie lines in particular.

Thus, recognizing how overlap regulation service includes the balancing of internal and external system dynamics clarifies why it is the correct answer in this context.