BILL NUMBER: AB 58 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 7, 2002
INTRODUCED BY Assembly Member Keeley
(Coauthors: Assembly Members Hertzberg, Kehoe, Leonard, Wesson,
and Wright)
DECEMBER 4, 2000
An act to amend Sections 335, 337, and 338 of, and to add
Section 352 to, the Public Utilities Code, relating to public
utilities, and declaring the urgency thereof, to take effect
immediately. 2827 and 2827.7 of the Public Utilities
Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 58, as amended, Keeley. Electrical restructuring:
Oversight Board: Independent System Operator: Power Exchange
Net energy metering .
(1) Existing law requires every electric service provider to
develop a standard contract or tariff providing for net energy
metering, and to make this contract available to eligible
customer-generators, upon request. Existing law, commencing on
January 1, 2003, requires every electric service provider, upon
request, to make available to eligible customer-generators contracts
for net energy metering subject to specified limitations on the
number of contracts.
This bill would require every electric service provider to ensure
that requests for establishment of net energy metering are processed
in a time period not exceeding that for customers requesting new
electric service, but not to exceed one month. The bill would also
require every electric service provider to make forms and contracts
for net energy metering available for download from the Internet and
to expedite the establishment of net energy metering upon request
from an eligible customer-generator.
(2) Existing law provides that generation eligible for net energy
metering installed on or before December 31, 2002, is entitled to the
net energy metering terms in effect on the date of installation for
the life of the installation.
This bill would make this provision applicable regardless of any
change in customer or ownership of the energy system.
(1) The Public Utilities Act provides for the establishment of an
Independent System Operator and a Power Exchange as separately
incorporated public benefit, nonprofit corporations, each governed by
a governing board composed as prescribed, including, but not limited
to, representatives of specified groups. Existing law provides
that, prior to a specified agreement, the state retains the right to
change the Independent System Operator and the Power Exchange
governing boards into nonstakeholder boards. An Electricity
Oversight Board is established by the act to oversee the Independent
System Operator and the Power Exchange. The board determines the
composition of the governing boards and the terms of service of the
members, and exercises the exclusive right to decline to confirm the
appointments of specific members of the governing boards of the
Independent System Operator and the Power Exchange.
This bill would amend the act to remove those provisions requiring
the governing boards to include those specified representatives.
The bill would make conforming changes regarding the board's
authority. The bill would prohibit the Independent System Operator
from entering into a multistate entity or a regional organization
unless that entry is approved by the board. Since a violation of the
act is a crime, this bill would impose a state-mandated local
program by establishing a new crime. The bill would make related
legislative findings and declarations and statements of legislative
intent.
(2) 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.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3 majority .
Appropriation: no. Fiscal committee: yes no
. State-mandated local program: yes
no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares all of the
SECTION 1. Section 2827 of the Public Utilities Code, as amended
by Section 11 of Chapter 8 of the Statutes of the 2001-02 First
Extraordinary Session, is amended to read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering for eligible customer-generators is one
way to encourage substantial private investment in renewable energy
resources, stimulate in-state economic growth, reduce demand for
electricity during peak consumption periods, help stabilize
California's energy supply infrastructure, enhance the continued
diversification of California's energy resource mix, and reduce
interconnection and administrative costs for electricity suppliers.
(b) As used in this section, the following definitions apply:
(1) "Electric service provider" means an electrical corporation,
as defined in Section 218, a local publicly owned electric utility,
as defined in Section 9604, or an electrical cooperative, as defined
in Section 2776, or any other entity that offers electrical service.
(2) "Eligible customer-generator" means a residential, small
commercial customer as defined in subdivision (h) of Section 331,
commercial, industrial, or agricultural customer of an electric
service provider, who uses a solar or a wind turbine electrical
generating facility, or a hybrid system of both, with a capacity of
not more than one megawatt that is located on the customer's owned,
leased, or rented premises, is interconnected and operates in
parallel with the electric grid, and is intended primarily to offset
part or all of the customer's own electrical requirements.
(3) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (e). Net energy metering shall be accomplished using a
single meter capable of registering the flow of electricity in two
directions. An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the customer-generator, at the expense of the electric service
provider, and the additional metering shall be used only to provide
the information necessary to accurately bill or credit the
customer-generator pursuant to subdivision (e), or to collect solar
or wind electric generating system performance information for
research purposes. If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions. If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a single
meter. An eligible customer-generator who already owns an existing
solar or wind turbine electrical generating facility, or a hybrid
system of both, is eligible to receive net energy metering service in
accordance with this section.
(c) (1) Every electric service provider shall develop a standard
contract or tariff providing for net energy metering, and shall make
this contract available to eligible customer-generators, upon
request. Every electric service provider shall ensure that
requests for establishment of net energy metering are processed in a
time period not exceeding that for customers requesting new electric
service, but not to exceed one month. Every electric service
provider shall make all necessary forms and contracts for net energy
metering available for download from the Internet, and shall expedite
the establishment of net energy metering upon request from an
eligible customer-generator.
(2) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that does not provide distribution service for the direct
transactions, the service provider that provides distribution service
for an eligible customer-generator is not obligated to provide net
energy metering to the customer.
(3) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier, and the customer is an eligible customer-generator, the
service provider that provides distribution service for the direct
transactions may recover from the customer's electric service
provider the incremental costs of metering and billing service
related to net energy metering in an amount set by the commission.
(d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if such customer was not an
eligible customer-generator, except that eligible
customer-generators shall not be assessed standby charges on the
electrical generating capacity or the kilowatthour production of an
eligible solar or wind electrical generating facility. The charges
for all retail rate components for eligible customer-generators shall
be based exclusively on the customer-generator's net kilowatthour
consumption over a 12-month period, without regard to the
customer-generator's choice of electric service provider. Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or other charge that would
increase an eligible customer-generator's costs beyond those of other
customers in the rate class to which the eligible customer-generator
would otherwise be assigned are contrary to the intent of this
legislation, and shall not form a part of net energy metering
contracts or tariffs.
(e) For eligible residential and small commercial
customer-generators, the net energy metering calculation shall be
made by measuring the difference between the electricity supplied to
the eligible customer-generator and the electricity generated by the
eligible customer-generator and fed back to the electric grid over a
12-month period. The following rules shall apply to the annualized
net metering calculation:
(1) The eligible residential or small commercial
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
customer-generator's system with an electric service provider, and at
each anniversary date thereafter, be billed for electricity used
during that period. The electric service provider shall determine if
the eligible residential or small commercial customer-generator was
a net consumer or a net producer of electricity during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric service provider exceeds
the electricity generated by the eligible residential or small
commercial customer-generator during that same period, the eligible
residential or small commercial customer-generator is a net
electricity consumer and the electric service provider shall be owed
compensation for the eligible customer-generator's net kilowatthour
consumption over that same period. The compensation owed for the
eligible residential or small commercial customer-generator's
consumption shall be calculated as follows:
(A) For all eligible customer-generators taking service under
tariffs employing "baseline" and "over baseline" rates, any net
monthly consumption of electricity shall be calculated according to
the terms of the contract or tariff to which the same customer would
be assigned to or be eligible for if the customer was not an eligible
customer-generator. If those same customer-generators are net
generators over a billing period, the net kilowatthours generated
shall be valued at the same price per kilowatthour as the electric
service provider would charge for the baseline quantity of
electricity during that billing period, and if the number of
kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
service provider would charge for electricity over the baseline
quantity during that billing period.
(B) For all eligible customer-generators taking service under
tariffs employing "time of use" rates, any net monthly consumption of
electricity shall be calculated according to the terms of the
contract or tariff to which the same customer would be assigned to or
be eligible for if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric service provider would charge for retail
kilowatthour sales during that same time of use period. If the
eligible customer-generator's time of use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (3)
of subdivision (b) shall apply.
(C) For all residential and small commercial customer-generators
and for each monthly period, the net balance of moneys owed to the
electric service provider for net consumption of electricity or
credits owed to the customer-generator for net generation of
electricity shall be carried forward until the end of each 12-month
period. For all commercial, industrial, and agricultural
customer-generators the net balance of moneys owed shall be paid in
accordance with the electric service provider's normal billing cycle,
except that if the commercial, industrial, or agricultural
customer-generator is a net electricity producer over a normal
billing cycle, any excess kilowatthours generated during the billing
cycle shall be carried over to the following billing period, valued
according to the procedures set forth in this section, and appear as
a credit on the customer-generator's account, until the end of the
annual period when paragraph (3) of subdivision (e) shall apply.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric service
provider during that same period, the eligible customer-generator is
a net electricity producer and the electric service provider shall
retain any excess kilowatthours generated during the prior 12-month
period. The eligible customer-generator shall not be owed any
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
(4) The electric service provider shall provide every eligible
residential or small commercial customer-generator with net
electricity consumption information with each regular bill. That
information shall include the current monetary balance owed the
electric service provider for net electricity consumed since the last
12-month period ended. Notwithstanding subdivision (e), an electric
service provider shall permit that customer to pay monthly for net
energy consumed.
(5) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric service provider, the electric service provider shall
reconcile the eligible customer-generator's consumption and
production of electricity during any part of a 12-month period
following the last reconciliation, according to the requirements set
forth in this subdivision, except that those requirements shall apply
only to the months since the most recent 12-month bill.
(6) If an electric service provider providing net metering to a
residential or small commercial customer-generator ceases providing
that electrical service to that customer during any 12-month period,
and the customer-generator enters into a new net metering contract or
tariff with a new electric service provider, the 12-month period,
with respect to that new electric service provider, shall commence on
the date on which the new electric service provider first supplies
electric service to the customer-generator.
(f) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability. A
customer-generator whose solar or wind turbine electrical generating
system, or a hybrid system of both, meets those standards and rules
shall not be required to install additional controls, perform or pay
for additional tests, or purchase additional liability insurance.
(g) This section shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.
SEC. 2. Section 2827 of the Public Utilities Code, as added by
Section 12 of Chapter 8 of the Statutes of the 2001-02 First
Extraordinary Session, is amended to read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering for eligible customer-generators is one
way to encourage private investment in renewable energy resources,
stimulate in-state economic growth, enhance the continued
diversification of California's energy resource mix, and reduce
interconnection and administrative costs for electricity suppliers.
(b) As used in this section, the following definitions apply:
(1) "Electric service provider" means an electric corporation, as
defined in Section 218, a local publicly owned electric utility, as
defined in Section 9604, or an electrical cooperative, as defined in
Section 2776. "Electric service provider" also means an entity that
offers electrical service to residential and small commercial
customers, as defined in Section 394, if that entity offers net
energy metering. Any entity that offers net energy metering to
residential and small commercial customers shall comply with this
section.
(2) "Eligible customer-generator" means a residential customer, or
a small commercial customer as defined in subdivision (h) of Section
331, of an electric service provider, who uses a solar or a wind
turbine electrical generating facility, or a hybrid system of both,
with a capacity of not more than 10 kilowatts that is located on the
customer's premises, is interconnected and operates in parallel with
the electric grid, and is intended primarily to offset part or all of
the customer's own electrical requirements.
(3) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (e). Net energy metering shall be accomplished using a
single meter capable of registering the flow of electricity in two
directions. An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the customer-generator, at the expense of the electric service
provider, and the additional metering shall be used only to provide
the information necessary to accurately bill or credit the
customer-generator pursuant to subdivision (e), or to collect solar
or wind electric generating system performance information for
research purposes. If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions. If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a single
meter. An eligible customer-generator who already owns an existing
solar or wind turbine electrical generating facility, or a hybrid
system of both, is eligible to receive net energy metering service in
accordance with this section.
(4) "Ratemaking authority" means, for an electrical corporation as
defined in Section 218, or an electrical cooperative as defined in
Section 2776, the commission, and for a local publicly owned electric
utility as defined in Section 9604, the local elected body
responsible for regulating the rates of the utility.
(c) (1) Every electric service provider shall develop a standard
contract or tariff providing for net energy metering, and shall make
this contract available to eligible customer-generators, upon
request, on a first-come-first-served basis until the time that the
total rated generating capacity used by eligible customer-generators
equals one-tenth of 1 percent of the electric service provider's
aggregate customer peak demand. Every electric service provider
shall ensure that requests for establishment of net energy metering
are processed in a time period not exceeding that for customers
requesting new electric service, but not to exceed one month. Every
electric service provider shall make all necessary forms and
contracts for net energy metering available for download from the
Internet, and shall expedite the establishment of net energy metering
upon request from an eligible customer-generator.
(2) On an annual basis, beginning in 1999, every electric service
provider shall make available to the ratemaking authority information
on the total rated generating capacity used by eligible
customer-generators that are customers of that provider in the
provider's service area. For those electric service providers who
are operating pursuant to Section 394, they shall make available to
the ratemaking authority the information required by this paragraph
for each eligible customer-generator that is their customer for each
service area of an electric corporation, local publicly owned
electric utility, or electrical cooperative, in which the customer
has net energy metering. The ratemaking authority shall develop a
process for making the information required by this paragraph
available to energy service providers, and for using that information
to determine when, pursuant to paragraph (3), a service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area.
(3) Notwithstanding paragraph (1), an electric service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area when the combined total peak
demand of all customer-generators served by all the electric service
providers in that service area furnishing net energy metering to
eligible customer-generators equals one-tenth of 1 percent of the
aggregate customer peak demand of those electric service providers.
(4) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that does not offer net energy metering and is therefore not
an electric service provider, the customer is not an eligible
customer-generator and the electric corporation, as defined in
Section 218, that provides distribution service for the direct
transactions, is not obligated to provide net energy metering to the
customer.
(5) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that offers net energy metering and is therefore an electric
service provider, and the customer is an eligible
customer-generator, the electric corporation, as defined in Section
218, that provides distribution service for the direct transactions
may recover from the customer's electric service provider the
incremental costs of metering and billing service related to net
energy metering in an amount set by the commission.
(d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if such customer was not an
eligible customer-generator. The charges for all retail rate
components for eligible customer-generators shall be based
exclusively on the customer-generator's net kilowatthour consumption
over a 12-month period, without regard to the customer-generator's
choice of electric service provider that offers net energy metering
and is subject to this section pursuant to paragraph (1) of
subdivision (b), in accordance with subdivision (e). Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or other charge that would
increase an eligible customer-generator's costs beyond those of other
customers in the rate class to which the eligible customer-generator
would otherwise be assigned are contrary to the intent of this
legislation, and shall not form a part of net energy metering
contracts or tariffs.
(e) The net energy metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible
customer-generator and the electricity generated by the eligible
customer-generator and fed back to the electric grid over a 12-month
period. The following rules shall apply to the annualized net
metering calculation:
(1) The eligible customer-generator shall, at the end of each
12-month period following the date of final interconnection of the
eligible customer-generator's system with an electric service
provider, and at each anniversary date thereafter, be billed for
electricity used during that period. The electric service provider
shall determine if the eligible customer-generator was a net consumer
or a net producer of electricity during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric service provider exceeds
the electricity generated by the eligible customer-generator during
that same period, the eligible customer-generator is a net
electricity consumer and the electric service provider shall be owed
compensation for the eligible customer-generator's net kilowatthour
consumption over that same period. The compensation owed for the
eligible customer-generator's net 12-month kilowatthour consumption
shall be calculated as follows:
(A) For eligible customer-generators taking service under tariffs
employing "baseline" and "over baseline" rates, any net monthly
consumption of electricity shall be calculated according to the terms
of the contract or tariff to which the same customer would be
assigned to or be eligible for if the customer was not an eligible
customer-generator. If those same customer-generators are net
generators over a billing period, the net kilowatthours generated
shall be valued at the same price per kilowatthour as the electric
service provider would charge for the baseline quantity of
electricity during that billing period, and if the number of
kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
service provider would charge for electricity over the baseline
quantity during that billing period.
(B) For eligible customer-generators taking service under tariffs
employing "time of use" rates, any net monthly consumption of
electricity shall be calculated according to the terms of the
contract or tariff to which the same customer would be assigned to or
be eligible for if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric service provider would charge for retail
kilowatthour sales during that same time of use period. If the
eligible customer-generator's time of use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (3)
of subdivision (b) shall apply.
(C) For all customer-generators and for each monthly period, the
net balance of moneys owed to the electric service provider for net
consumption of electricity or credits owed to the customer-generator
for net generation of electricity shall be carried forward until the
end of each 12-month period.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric service
provider during that same period, the eligible customer-generator is
a net electricity producer and the electric service provider shall
retain any excess kilowatthours generated during the prior 12-month
period. The eligible customer-generator shall not be owed any
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
(4) The electric service provider shall provide every eligible
customer-generator with net electricity consumption information with
each regular bill. That information shall include the current
monetary balance owed the electric service provider for net
electricity consumed since the last 12-month period ended.
Notwithstanding subdivision (e), an electric service provider shall
permit that customer to pay monthly for net energy consumed.
(5) If an eligible customer-generator terminates the customer
relationship with the electric service provider, the electric service
provider shall reconcile the eligible customer-generator's
consumption and production of electricity during any part of a
12-month period following the last reconciliation, according to the
requirements set forth in this subdivision, except that those
requirements shall apply only to the months since the most recent
12-month bill.
(6) If an electric service provider providing net metering to a
customer-generator ceases providing that electrical service to that
customer during any 12-month period, and the customer-generator
enters into a new net metering contract or tariff with a new electric
service provider, the 12-month period, with respect to that new
electric service provider, shall commence on the date
on which the new electric service
provider first supplies electric service to the customer-generator.
(f) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability. A
customer-generator whose solar or wind turbine electrical generating
system, or a hybrid system of both, meets those standards and rules
shall not be required to install additional controls, perform or pay
for additional tests, or purchase additional liability insurance.
(g) This section shall become operative on January 1, 2003.
SEC. 3. Section 2827.7 of the Public Utilities Code is amended to
read:
2827.7. Generation eligible for net energy metering
that is installed on or before December 31, 2002, shall be entitled,
regardless of any change in customer or ownership of the energy
system, for the life of the installation, to the net
energy metering terms in effect on the date of installation.
following:
(1) In restructuring electricity in 1996, the Legislature
established the Independent System Operator and the Power Exchange,
each with governing boards with designated representatives from the
investor-owned utility transmission owners, publicly owned utility
transmission owners, nonutility electricity sellers, public and
private buyers and sellers, consumers, public interest groups, and
nonmarket participants.
(2) It was the intent of the Legislature and the Governor in
establishing the Independent System Operator and the Power Exchange
that the two organizations would not expose California citizens to
undue economic risk.
(3) It is now necessary to change the structure of governance of
the Independent System Operator and the Power Exchange to ensure that
the economic interests of California's citizens are protected from
an unstable electricity market at least during a period of transition
until a fully functional electricity market is established and
demonstrated.
(4) On November 1, 2000, the Federal Energy Regulatory Commission
(FERC), which regulates the services provided by the Independent
System Operator and the Power Exchange under the Federal Power Act
(16 U.S.C.A. Sec. 791a et seq.), issued an order that, if
implemented, would restructure the governing boards of the
Independent System Operator and the Power Exchange in a manner that
is likely to conflict with existing state law.
(b) It is the intent of the Legislature that the Electricity
Oversight Board, which is responsible for confirming the appointments
to the governing boards of the Independent System Operator and the
Power Exchange, shall make appointments such as it determines to be
appropriate, qualified, and necessary.
SEC. 2. The Legislature further finds and declares all of the
following:
(a) In establishing the Independent System Operator and the Power
Exchange, the Legislature and the Governor intended that the two
entities should evolve into, or otherwise establish through compact
or other agreement, regional transmission organizations to increase
access of consumers to the electricity markets of other states.
(b) In view of the instability of the California electricity
market and the transitional nature of the electricity sector
restructuring, it is premature for the Independent System Operator or
the Power Exchange to undertake steps that would further commit
California citizens to the form and substance of the restructuring
that was originally contemplated unless it has been clearly
established to be in the interest of California's citizens.
(c) Entering into a compact or an agreement that would extend
California's electric sector into a regional transmission grid may
not be appropriate at this time.
SEC. 3. 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) To determine the composition of the board and the terms of
service of the members of the board and to exercise the exclusive
right to confirm or decline to confirm the appointments of members of
the governing boards of the Independent System Operator and 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.
SEC. 4. Section 337 of the Public Utilities Code is amended to
read:
337. The Oversight Board shall have the exclusive right to
approve procedures for the election and submission for confirmation
and the qualifications for Independent System Operator governing
board members, all of whom shall be required to be electricity
consumers in the area served by the Independent System Operator.
SEC. 5. Section 338 of the Public Utilities Code is amended to
read:
338. The Oversight Board shall have the exclusive right to
approve procedures and the qualifications for Power Exchange
governing board members , all of whom shall be required to be
electricity customers in the area served by the Power Exchange.
SEC. 6. Section 352 is added to the Public Utilities Code, to
read:
352. The Independent System Operator may not enter into a
multistate entity or a regional organization as authorized in Section
359 unless that entry is approved by the Oversight Board.
SEC. 7. 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.
SEC. 8. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to make the Independent System Operator and the Power
Exchange more accountable to the people of this state by eliminating
stakeholder governing boards, thereby acting to mitigate the state's
current energy crisis, it is necessary for this act to take effect
immediately.