BILL NUMBER: ABX1 8 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 5, 2001
AMENDED IN ASSEMBLY FEBRUARY 13, 2001
INTRODUCED BY Assembly Members Migden, Diaz, and Oropeza
JANUARY 16, 2001
An act to add Section 363.1 to amend
Section 335 of, and to add Section 342 to, the Public Utilities
Code, relating to public utilities , and making an
appropriation therefor .
LEGISLATIVE COUNSEL'S DIGEST
AB 8, as amended, Migden. Public Utilities Commission:
electric generators: unscheduled maintenance
Electrical restructuring: Oversight Board: Independent System
Operator .
(1) Under existing electrical restructuring in the Public
Utilities Act, the Public Utilities Commission regulates the electric
generating facilities of public utility electrical corporations.
This bill would require the commission to require electric
generators to defer scheduled maintenance of generating facilities,
as the commission determines to be appropriate, in order to maintain
the stability of the grid or of the price of electricity in the
market. The bill would authorize the commission, notwithstanding
specified existing law, and to the extent not prohibited by federal
law, to inspect electric generating facilities and order that an
electric generating facility not operating due to unscheduled
maintenance resume operation. Since a violation of a rule or order
of the commission is a crime, this bill would impose a state-mandated
local program by creating a new crime.
This bill would require the commission to prepare and submit,
monthly, to the chairs of specified legislative committees, a report
regarding certain actions taken by the commission under the
provisions of the bill.
This bill would make related legislative findings and
declarations.
(1) The existing restructuring of the electrical services industry
within the Public Utilities Act provides for the establishment of an
Independent System Operator and a Power Exchange as separately
incorporated public benefit, nonprofit corporations. An Electricity
Oversight Board (Oversight Board) is also established to oversee the
Independent System Operator and the Power Exchange in order to ensure
the success of electric industry restructuring and to ensure a
reliable supply of electricity in the transition to a new market
structure. The Oversight Board is granted various powers in order to
carry out these purposes.
This bill would expand the authority of the Oversight Board to act
on any matters made subject to the approval or determination by the
Oversight Board under law, and to investigate any matter and
otherwise act consistent with these provisions to ensure that the
interests of California's citizens and consumers are served,
protected, and represented in relation to the electric transmission
grid and generation system and related costs.
The bill would require that electric generation and transmission
facilities be subject to various prescribed availability standards.
The bill would require the Independent System Operator to annually
prepare and submit to the Oversight Board a proposed protocol for the
scheduling of transmission and generation equipment outages for the
purpose of maintenance, repair, or upgrade, that is required to be
reviewed, approved or revised by the Oversight Board after notice and
public hearing. The bill would require the Independent System
Operator to utilize the approved protocol for the purpose of
scheduling maintenance or other planned outages of equipment and to
submit a coordinated outage plan to the Oversight Board. The bill
would require the Independent System Operator to develop and submit
proposed generation facility maintenance criteria for approval by the
Oversight Board after notice and public hearing. The bill would
require the Independent System Operator to maintain records of
generation facility outages and provide those records to the
Oversight Board on a daily basis. The bill would require entities
that own or operate certain electric generating facilities to provide
reports on a monthly basis to the Oversight Board that identify any
periods the facilities were unavailable to produce electricity or
were available at reduced capacity. The bill would authorize the
Independent system Operator and the Oversight Board to engage in
audits or inspection of facilities that fail to comply with
procedures, criteria, or standards established pursuant to these
provisions. The bill would require owners or operators of generation
or transmission facilities to provide the Independent System
Operator and the Oversight Board with information and access to the
facilities as necessary to accomplish reasonable audits and
inspections. The bill would authorize the Oversight Board to assess
a monetary penalty against an owner or operator of a facility found
to have failed to comply with criteria, standards, or procedures
established pursuant to these provisions. Since a violation of the
Public Utilities Act is a crime under existing provisions of law, the
bill would create a state-mandated local program by expanding the
definition of a crime.
(2) The bill would appropriate $575,000 from the General Fund to
the Oversight Board to be used for the purposes of these provisions.
The
(3) 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.
Vote: majority 2/3 .
Appropriation: no yes . Fiscal
committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
SECTION 1. Section 335 of the Public Utilities Code is amended to
read:
335. In order to ensure that the interests of the people of
California are served, a five-member Electricity Oversight Board is
hereby created as provided in Section 336. For purposes of this
chapter, any reference to the Oversight Board shall mean the
Electricity Oversight Board. Its functions shall be all of the
following:
(a) To oversee the Independent System Operator and the Power
Exchange.
(b) (1) To exercise the exclusive right to decline to confirm the
appointments of members of the governing board of the Independent
System Operator.
(2) To determine the composition and terms of service and to
exercise the exclusive right to decline to confirm the appointments
of specific members of the governing board of the Power Exchange.
(c) To serve as an appeal board for majority decisions of the
Independent System Operator governing board, as they relate to
matters subject to exclusive state jurisdiction, as specified in
Section 339.
(d) Those members of the Power Exchange governing board whose
appointments the Oversight Board has the exclusive right to decline
to confirm include proposed governing board members representing
agricultural end users, industrial end users, commercial end users,
residential end users, end users at large, nonmarket participants,
and public interest groups.
(e) To act on any matters made subject to approval or
determination by the Oversight Board under law.
(f) To investigate any matter and otherwise act consistent with
this chapter to ensure that the interests of California's citizens
and consumers are served, protected, and represented in relation to
the electric transmission grid and generation system and related
costs.
SEC. 2. Section 342 is added to the Public Utilities Code, to
read:
342. (a) The Legislature finds and declares that electric
generation and transmission facilities are critical infrastructure
and their predictable availability is essential to the public
welfare.
(b) Electric generation and transmission facilities shall be
subject to availability standards, in accordance with this section.
(c) Owners or operators of electric generating facilities in the
State of California shall comply with all standards approved or
established pursuant to this chapter.
(d) The Independent System Operator shall prepare and submit to
the Oversight Board, a proposed protocol for the scheduling of
transmission and generation equipment outages for the purposes of
maintenance, repair, or upgrade. The Independent System Operator
shall resubmit this protocol, including any proposed revisions of the
protocol, at least annually. The Oversight Board shall review and
approve or direct revision of the proposed protocol as it determines
is appropriate and necessary to protect the public interest after
notice and public hearing. The Independent System Operator shall
utilize an approved protocol for the purpose of scheduling
maintenance or other planned outages of equipment including the
preparation of a coordinated outage plan. The Independent System
Operator shall prepare and submit to the Oversight Board, a
coordinated outage plan that shall be updated not less than once each
quarter.
(e) The Independent System Operator shall develop and submit to
the Oversight Board proposed generation facility maintenance
criteria. The Oversight Board shall review the proposed generation
maintenance criteria and approve or direct revision of the criteria
as it determines necessary to protect the public interest after
notice and public hearing.
(f) The Independent System Operator shall maintain records of
generation facility outages and shall provide those records to the
Oversight Board on a daily basis. Each entity that owns or operates
an electric generating facility in California with a rated maximum
combined capacity of 50 megawatts or greater for all units at a
single location, shall provide a monthly report to the Independent
System Operator and the Oversight Board that identifies any periods
during the preceding month when the facility was unavailable to
produce electricity or was available only at reduced capacity. The
report shall identify the reasons for any such unavailability or
reduced capacity.
(g) The Independent System Operator and the Oversight Board may
engage in audits or inspection of facilities that fail to comply with
procedures, criteria, or standards established pursuant to this
section or for which compliance is in question. Owners or operators
of generation or transmission facilities shall provide information
and access to the Independent System Operator and the Oversight Board
as necessary to accomplish reasonable audit or inspection. The
Oversight Board may, on petition of the Independent System Operator
or acting on its own motion, and after public notice and hearing,
assess a monetary penalty against the owner or operator of a facility
found to have failed to comply with criteria, standards, or
procedures approved or established pursuant to this section.
SEC. 3. The sum of five hundred seventy-five thousand dollars
($575,000) is hereby appropriated from the General Fund to the
Electricity Oversight Board to be used for the purposes described in
Section 342 of the Public Utilities Code. following:
(a) Shortages in electricity available to public utility
electrical corporations in this state have resulted in blackouts
affecting millions of Californians.
(b) Unanticipated and dramatic increases in the price of
electricity threaten the public safety and economic security.
(c) The existing energy shortage requires substantial additional
authority for the Public Utilities Commission to regulate generators
of electric power to guard against potential manipulation of the
market from poorly timed or unauthorized maintenance of electric
generating facilities.
(d) It is the intent of the Legislature in enacting this act to
authorize the Public Utilities Commission to take measures to provide
that any actions removing electric generating plants from supplying
power are coordinated to the maximum extent possible to maintain
stability in the wholesale market for power.
SEC. 2. Section 363.1 is added to the Public Utilities Code, to
read:
363.1. (a) The commission may require electric generators to
defer scheduled maintenance of generating facilities, as the
commission determines to be appropriate, in order to maintain the
stability of the grid or of the price of electricity in the market.
(b) Notwithstanding subdivision (g) of Section 216, and to the
extent not prohibited by federal law, the commission may inspect
electric generating facilities and may order that an electric
generating facility not operating due to unscheduled maintenance
resume operation.
(c) The commission shall prepare and submit, monthly, to the Chair
of the Assembly Utilities and Commerce Committee and the Chair of
the Senate Energy, Utilities and Communications Committee a report
regarding any action taken by the commission in accordance with this
section to order that scheduled maintenance be conducted at a
specific generating facility at a specific time or that a generating
facility resume operation from unscheduled maintenance.
SEC. 3.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB 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 XIIIB of the California Constitution.