BILL NUMBER: SB 1078	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Jackson

                        FEBRUARY 19, 2014

   An act to amend Section 345.5 of the Public Utilities Code,
relating to electricity.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1078, as introduced, Jackson. Electricity: Independent System
Operator.
   The Public Utilities Act provides for the establishment of an
Independent System Operator as a nonprofit, public benefit
corporation. Existing law requires the Independent System Operator to
manage the transmission grid and related energy markets in a manner
that is consistent with (1) making the most efficient use of
available energy resources, (2) reducing, to the extent possible,
overall economic cost to the state's consumers, (3) applicable state
law intended to protect the public's health and the environment, and
(4) maximizing the availability of existing electric generation
resources necessary to meet the needs of the state's electricity
consumers.
   This bill would revise the 4th requirement described above to
require that in managing the transmission grid and related energy
markets, the Independent System Operator do so consistent with
maximizing utilization of existing electrical resources, including
all cost-effective demand-side and renewable energy resources, that
are connected to the distribution or transmission grid, as are
necessary for reliable operation of the grid and sufficient to meet
the needs of the state's electricity consumers.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 345.5 of the Public Utilities Code is amended
to read:
   345.5.  (a) The Independent System Operator, as a nonprofit,
public benefit corporation, shall conduct its operations consistent
with applicable state and federal laws and consistent with the
interests of the people of the state.
   (b) To ensure the reliability of electric service and the health
and safety of the public, the Independent System Operator shall
manage the transmission grid and related energy markets in a manner
that is consistent with all of the following:
   (1) Making the most efficient use of available energy resources.
For purposes of this section, "available energy resources" include
energy, capacity, ancillary services, and demand bid into markets
administered by the Independent System Operator. "Available energy
resources" do not include a schedule submitted to the Independent
System Operator by an electrical corporation or a local publicly
owned electric utility to meet its own customer load.
   (2) Reducing, to the extent possible, overall economic cost to the
state's consumers.
   (3) Applicable state law intended to protect the public's health
and the environment. 
   (4) Maximizing availability of existing electric generation
resources necessary to meet the needs of the state's electricity
consumers.  
   (4) Maximizing utilization of existing electrical resources,
including all cost-effective demand-side and renewable energy
resources, that are connected to the distribution or transmission
grid, as are necessary for reliable operation of the grid and
sufficient to meet the needs of the state's electricity consumers.

   (5) Conducting internal operations in a manner that minimizes cost
impact on ratepayers to the extent practicable and consistent with
the provisions of this chapter.
   (6) Communicating with all balancing area authorities in
California in a manner that supports electrical reliability.
   (c) The Independent System Operator shall do all of the following:

   (1) Consult and coordinate with appropriate state and local
agencies to ensure that the Independent System Operator operates in
furtherance of state law regarding consumer and environmental
protection.
   (2) Ensure that the purposes and functions of the Independent
System Operator are consistent with the purposes and functions of
nonprofit, public benefit corporations in the state, including duties
of care and conflict-of-interest standards for officers and
directors of a corporation.
   (3) Maintain open meeting standards and meeting notice
requirements consistent with the general policies of the Bagley-Keene
Open Meeting Act (Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code)
and affording the public the greatest possible access, consistent
with other duties of the corporation. The Independent System Operator'
s Open Meeting Policy, as adopted on April 23, 1998, and in effect as
of May 1, 2002, meets the requirements of this paragraph. The
Independent System Operator shall maintain a policy that is no less
consistent with the Bagley-Keene Open Meeting Act than its policy in
effect as of May 1, 2002.
   (4) Provide public access to corporate records consistent with the
general policies of the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) and affording the public the greatest possible
access, consistent with the other duties of the corporation. The
Independent System Operator's Information Availability Policy, as
adopted on October 22, 1998, and in effect as of May 1, 2002, meets
the requirements of this paragraph. The Independent System Operator
shall maintain a policy that is no less consistent with the
California Public Records Act than its policy in effect as of May 1,
2002.