To demonstrate compliance with Requirement R1, each non-FRSG member BA must achieve an annual FRM that is:

To demonstrate compliance with Requirement R1, each non-FRSG member Balancing Authority (BA) must achieve an annual Federal Resource Monitoring (FRM) that is equal to or more negative than its Federal Resource Obligation (FRO). This is crucial because the FRO reflects the minimum level of generation or resources the BA must maintain to meet reliability and operational standards.

By ensuring that the FRM is equal to or more negative than the FRO, the BA is confirming that it is not exceeding the limits set for its obligations and that it can effectively manage its resources without undermining reliability. This compliance metric helps maintain operational security and ensure that the power system remains reliable, which is the core purpose of the established standards.

Other options describe conditions that would not align with the intent of compliance; they position the FRM in relation to different metrics that do not specifically capture the requirement outlined in Requirement R1. Thus, the focus on maintaining the FRM at or below the FRO solidifies a BA's commitment to balancing the demand for electricity with its available resources.