This paper presents the criteria for setting the dynamic operating mode of BESS(Battery Energy Storage System) in the bulk power systems. ESS has been expected to improve the degraded dynamic performance of the power system with high penetration of the renewable resources. While ESS is controlled in steady state or dynamic operating mode for its better effectiveness depending on the operating conditions of power systems, the criteria for setting the dynamic operating mode for the transient period needs to be robust enough to cover all the different conditions. The proposed criteria consider the varying conditions and the operating practices of the bulk power systems.