Area Control Error (ACE) is the difference between scheduled and actual electrical

generation within a control area on the power grid, taking frequency bias into account. To
elaborate, generating an amount of electricity in exact equilibrium with consumption (load), is
extremely difficult and also quite impractical. Instead, generation controllers strive to
continually alternate between over- and under-generating. For instance, in the PJM control
area, the generation dispatcher's official target is to cross the break-even point (i.e. a zero
ACE value) fifteen times per hour.
The formula for calculation of ACE follows:
ACE = (NIA - NIS) - 10b (FA - FS) Tob + IME
Where,

NIA represents actual net interchange (MWs)

NIS represents scheduled net interchange (MWs)
b represents the control area's frequency bias setting (MW/0.1 Hz)
FA represents actual system frequency (Hz)
FS represents scheduled system frequency (60.0 Hz in America)
Tob represents scheduled interchange energy used to bilaterally correct inadvertent
accumulations (MWs)
IME represents a manually entered amount to compensate for known equipment
error (MWs)