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# Data-Based Optimal Estimation of Frequency Bias: The Case of Southwest Power Pool

In this paper, we introduce a method to optimally estimate time-varying frequency bias β. Current industry practice is to assume that β is changing only on annual basis. We suggest that this improved time-dependent bias estimate can be used to reduce the cost of frequency regulation needed to meet industry standards requested by the North American Electric Reliability Corporation (NERC). Optimization of time-varying frequency bias is posed as a parameter estimation (calibration) problem whose implementation utilizes online system measurements. It is further shown how this result can be used to estimate intradispatch load deviations. This knowledge is needed to estimate more accurately regulation reserve needed, and to therefore reduce overall regulation cost. Methods can be introduced to give incentives to demand response to participate in frequency regulation. Overall, we show the importance of incorporating knowledge of physics-based models for data-enabled parameter estimation of physical systems.