A pseudo-tie is included in which part of a Balancing Authority's tie-line ACE equation?

The correct answer is that a pseudo-tie is included in the actual interchange part of a Balancing Authority's tie-line ACE equation. A pseudo-tie refers to a virtual tie that is established in the context of balancing authorities to manage the flow of power across a system as if it were a physical generation resource. This allows two balancing authorities to coordinate and effectively balance power flows even when they are not physically interconnected in the traditional sense.

In the context of the ACE (Area Control Error) equation, actual interchange represents the measured or calculated transfers of energy between balancing areas or within a balancing area. Since a pseudo-tie essentially influences how each Balancing Authority's real-time balance of generation and load is calculated, it should be accounted for in the actual interchange to accurately reflect the systemic impacts of those decisions and adjustments.

Including the pseudo-tie in actual interchange ensures that the Balancing Authority is accounting for the flows that would occur if there were a physical tie, allowing for more accurate balancing and compliance with operational standards. By integrating this into their calculations, authorities can maintain reliability and stability in the broader electric grid.