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 345.5 of the Public Utilities Code is
2amended to read:
(a) The Independent System Operator, as a nonprofit,
4public benefit corporation, shall conduct its operations consistent
5with applicable state and federal laws and consistent with the
6interests of the people of the state.
7(b) To ensure the reliability of electric service and the health
8and safety of the public, the Independent System Operator shall
9manage the transmission grid and related energy markets in a
10manner that is consistent with all of the following:
11(1) Making the most efficient use of available energy resources.
12For purposes of this section, “available energy resources” include
13energy, capacity, ancillary services, and demand bid into markets
14administered by the Independent System Operator.
“Available
15energy resources” do not include a schedule submitted to the
16Independent System Operator by an electrical corporation or a
17local publicly owned electric utility to meet its own customer load.
18(2) Reducing, to the extent possible, overall economic cost to
19the state’s consumers.
20(3) Applicable state law intended to protect the public’s health
21and the environment.
22(4) Maximizing availability of existing electric generation
23resources necessary to meet the needs of the state’s electricity
24consumers.
25(4) Maximizing
utilization of existing electrical resources,
26including all cost-effective demand-side and renewable energy
27resources, that are connected to the distribution or transmission
28grid, as are necessary for reliable operation of the grid and
29sufficient to meet the needs of the state’s electricity consumers.
30(5) Conducting internal operations in a manner that minimizes
31cost impact on ratepayers to the extent practicable and consistent
32with the provisions of this chapter.
33(6) Communicating with all balancing area authorities in
34California in a manner that supports electrical reliability.
35(c) The Independent System Operator shall do all of the
36following:
37(1) Consult and coordinate with appropriate state and local
38agencies to ensure that
the Independent System Operator operates
P3 1in furtherance of state law regarding consumer and environmental
2protection.
3(2) Ensure that the purposes and functions of the Independent
4System Operator are consistent with the purposes and functions
5of nonprofit, public benefit corporations in the state, including
6duties of care and conflict-of-interest standards for officers and
7directors of a corporation.
8(3) Maintain open meeting standards and meeting notice
9requirements consistent with the general policies of the
10Bagley-Keene Open Meeting Act (Article 9 (commencing with
11Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of
12the Government Code) and affording the public the greatest
13possible access, consistent with other duties of the corporation.
14The Independent System Operator’s Open Meeting Policy, as
15adopted on April 23, 1998, and in effect as of May 1, 2002, meets
16the
requirements of this paragraph. The Independent System
17Operator shall maintain a policy that is no less consistent with the
18Bagley-Keene Open Meeting Act than its policy in effect as of
19May 1, 2002.
20(4) Provide public access to corporate records consistent with
21the general policies of the California Public Records Act (Chapter
223.5 (commencing with Section 6250) of Division 7 of Title 1 of
23the Government Code) and affording the public the greatest
24possible access, consistent with the other duties of the corporation.
25The Independent System Operator’s Information Availability
26Policy, as adopted on October 22, 1998, and in effect as of May
271, 2002, meets the requirements of this paragraph. The Independent
28System Operator shall maintain a policy that is no less consistent
29with the California Public Records Act than its policy in effect as
30of May 1, 2002.
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