BILL NUMBER: AB 2516 ENROLLED
BILL TEXT
PASSED THE SENATE JUNE 28, 2012
PASSED THE ASSEMBLY MAY 17, 2012
AMENDED IN ASSEMBLY MAY 14, 2012
INTRODUCED BY Assembly Member Bradford
FEBRUARY 24, 2012
An act to amend Section 345.5 of the Public Utilities Code,
relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 2516, Bradford. Independent System Operator.
The existing restructuring of the electrical industry within the
Public Utilities Act provides for the establishment of an Independent
System Operator (ISO) as a nonprofit public benefit corporation.
Existing law requires the ISO 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, in addition, require the ISO to manage the
transmission grid and related energy markets in a manner that is
consistent with (5) conducting internal operations in a manner that
minimizes cost impact on ratepayers to the extent practicable and
consistent with the provisions applicable to the operation of the ISO
and (6) communicating with all balancing area authorities in
California in a manner that supports electrical reliability.
The Public Utilities Act provides that every corporation or
person, other than a public utility and its officers, agents, and
employees, that fails to comply with the act is guilty of a crime.
Because the requirements of this bill are within the act, the bill
would impose a state-mandated local program by expanding the
application of a crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
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.
(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.
SEC. 2. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.