BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 655
                                                                  Page  1


          SENATE THIRD READING
          SB 655 (Padilla)
          As Amended  May 20, 2009
          Majority vote 

           SENATE VOTE  :25-11  
           
           UTILITIES & COMMERCE             15-0                
          APPROPRIATIONS      17-0        
           
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          |Ayes:|Fuentes, Duvall, Tom      |Ayes:|De Leon, Conway, Ammiano, |
          |     |Berryhill, Buchanan,      |     |                          |
          |     |Carter, Fong, Fuller,     |     |Charles Calderon, Coto,   |
          |     |Furutani, Huffman,        |     |Davis, Duvall, Fuentes,   |
          |     |Krekorian, Skinner,       |     |Hall, Harkey, Miller,     |
          |     |Smyth, Swanson, Torrico,  |     |John A. Perez, Skinner,   |
          |     |Villines                  |     |Solorio, Audra            |
          |     |                          |     |Strickland, Torlakson,    |
          |     |                          |     |Hill                      |
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           SUMMARY  :   Requires the California Independent System Operator  
          (CAISO) to appear annually before the appropriate policy  
          committees of the Senate and the Assembly to report on CAISO's  
          activities, and states legislative intent that CAISO take all  
          necessary steps to ensure that the transmission grid is secure  
          from intrusion by unauthorized persons or entities.  

           EXISTING LAW  :   

          1)Creates CAISO as a nonprofit public benefit corporation to  
            ensure the reliability of electric service and the health and  
            safety of the public.

          2)Requires CAISO to consult and coordinate with state and local  
            agencies to ensure CAISO operates in furtherance of state law  
            regarding consumer and environmental protection.
           
          FISCAL EFFECT  :   Negligible fiscal impact.

           COMMENTS  :   CAISO dispatches electricity, performs a needs  
          analysis on proposed transmission lines, and conducts auctions  
          for the purchase of electricity needed to meet immediate and  
          near-term needs.  CAISO costs are paid indirectly by ratepayers  








                                                                  SB 655
                                                                  Page  2


          through the transmission charge that's embedded in rates.

          This bill states legislative intent that CAISO take all  
          necessary steps to ensure that the transmission grid is secure  
          from intrusion by unauthorized persons or entities.  SB 655  
          makes a finding that the deployment of smart grid technology  
          creates additional opportunities for unauthorized persons or  
          entities to impact the transmission grid.   
           

           Analysis Prepared by  :    Gina Adams / U. & C. / (916) 319-2083 



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