Which of the following is a key goal of the Capacity Benefit Margin (CBM)?

Prepare for the North American Electric Reliability Corporation exam. Utilize flashcards and multiple-choice questions with detailed explanations to enhance your understanding and readiness. Ace your exam!

The Capacity Benefit Margin (CBM) is primarily aimed at ensuring that there is a sufficient reserve of available generation capacity to meet unexpected demand fluctuations. It acts as a buffer to accommodate sudden increases in load or potential generation outages, helping to maintain reliability in the power system. By reserving this margin, utilities can prevent shortages that might arise from unanticipated circumstances, thus enhancing the stability of the grid.

While minimizing generation costs, providing back-up generation, and balancing load and generation are important aspects of electric grid management, they do not specifically encapsulate the foundational purpose of CBM. CBM focuses distinctly on the capacity required to cover unexpected demand peaks, ensuring a reliable supply of electricity and safeguarding against potential disruptions in service.

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