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As more and more variable generation is integrated into power grids, many challenges and concerns arise for an individual balancing authority (BA) to balance the system with limited flexible generation resources. Consolidating balancing authorities provides a promising method to mitigate these problems by enabling the sharing of balancing resources through operating different BAs as a single BA. The diversity in load and renewable generation over a wide area can be effectively used, which makes it possible to achieve significant savings in balancing requirements. This paper develops a detailed procedure to compute savings in load following and regulation service requirements due to BAs consolidation. It proposes several evaluation metrics for demonstrating the benefits of BA consolidation. Several study scenarios are designed for a set of BAs in the western United States to test the proposed procedure. Results have shown significant savings in the capacity, ramp rate, and energy of balancing service requirements. Important factors affecting the savings, such as forecast accuracy and cross correlation between forecast errors, are also discussed.