BILL NUMBER: SB 47 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 18, 2001
INTRODUCED BY Senator Bowen
DECEMBER 8, 2000
An act to amend Sections 335 and 341.2 of, and to repeal
and add Sections 337 and 338 of, , 337, and 341.2 of
the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 47, as amended, Bowen. Electrical restructuring:
Oversight Board: Independent System Operator : Power
Exchange .
The existing restructuring of the electrical services industry
provides for the authorization of direct transactions between
electricity suppliers and end use customers and for the establishment
of an Independent System Operator and a Power Exchange. An
Electricity Oversight Board is also established to oversee the
Independent System Operator and the Power Exchange. The
Under existing law, the Oversight Board has the
exclusive right to decline to confirm the appointments of
members of the governing board of the Independent System Operator.
approve procedures for the election, submission for
confirmation, and qualification for Independent System Operator and
Power Exchange governing board members, all of whom are required to
be electricity consumers in the area served by the Independent System
Operator and the Power Exchange. The governing boards are required
to include representatives of investor-owned utility transmission
owners, publicly owned utility transmission owners, nonutility
electricity sellers, public buyers and sellers, private buyers and
sellers, industrial end users, commercial end users, residential end
users, agricultural end users, public interest groups, and nonmarket
participant representatives. A simple majority of each board is
required to consist of persons who are themselves unaffiliated with
electric generation, transmission, or distribution corporations. The
structural composition of the governing boards existing on July 1,
1999, is required to remain in effect until an agreement with a
participating state is legally in effect. However, prior to that
agreement, the state retains the right to change each governing board
into a nonstakeholder board. If that legislative change occurs,
revised bylaws are required to be filed with the Federal Energy
Regulatory Commission under a specified provision of federal law.
This bill, instead, would require that the Independent System
Operator and Power Exchange governing boards be composed of 3
independent directors appointed by the Governor, and subject to
confirmation by the Senate.
The bill would prohibit a member of the independent governing
board appointed by the Governor from being affiliated with any actual
or potential participant in any market administered by the
Independent System Operator or the Power Exchange.
The bill would require the board to require the articles of
incorporation and bylaws of the Independent System Operator and the
Power Exchange to be revised, and to make filings with the Federal
Energy Regulatory Commission as the board determines to be necessary.
Under existing law, the existing Independent System
Operator governing board is required to be replaced, within a
specified period of time, by a 5-member independent governing board
of directors appointed by the Governor for one-year terms. Existing
law requires that a member of the independent governing board of the
Independent System Operator not be affiliated with any actual or
potential market participant administered by the Independent System
Operator.
This bill would delete the Electricity Oversight Board's exclusive
right to decline to confirm the appointments of members of the
governing board of the Independent System Operator. This bill would
require the Independent System Operator governing board appointed by
the Governor to be confirmed by the Senate. The bill would require
these appointments to be for 3-year terms, with initial appointments
of one member for a one-year term, 2 members for a 2-year term, and 2
members for a 3-year term. The bill would specify that a member of
the governing board of the Power Exchange is not considered to be
affiliated with a market participant solely as a consequence of
service on the governing board of the Power Exchange.
The bill would make other, a
conforming changes change in existing
law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 335 of the Public Utilities Code is
SECTION 1. Section 335 of the Public Utilities Code, as amended by
Section 1 of Chapter 1 of the 2001-02 First Extraordinary Session,
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.
SEC. 2. Section 337 of the Public Utilities Code, as amended by
Section 3 of Chapter 1 of the 2001-02 First Extraordinary Session, is
amended to read:
337. (a) Within 90 days of the effective date of the act
adding this section, the existing The
Independent System Operator governing board shall be
replaced by composed of a five-member
independent governing board of directors appointed by the Governor
and subject to confirmation by the Senate . Any reference
in this chapter or in any other provision of law to the Independent
System Operator governing board means the independent governing board
appointed under this subdivision.
(b) A member of the independent governing board appointed under
subdivision (a) may not be affiliated with any actual or potential
participant in any market administered by the Independent System
Operator. A member of the governing board of the Power Exchange
shall not be considered to be affiliated with a participant solely
as a consequence of that individual's service on the governing board
of the Power Exchange.
(c) (1) All appointments shall be for one-year
three-year terms.
(2) There is no limit on the number of terms that may be served by
any member.
(d) The Oversight Board shall require the articles of
incorporation and bylaws of the Independent System Operator to be
revised in accordance with this section, and shall make filings with
the Federal Energy Regulatory Commission as the Oversight Board
determines to be necessary.
(e) For the purposes of the initial appointments to the
Independent System Operator governing board, as provided in
subdivision (a), the Governor shall appoint one member to a one-year
term, two members to a two-year term, and two members to a three-year
term.
SEC. 3. Section 341.2 of the Public Utilities Code, as amended by
Section 4 of Chapter 1 of the 2001-02 First Extraordinary Session, is
amended to read:
341.2. 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) applies to meetings of the Oversight Board.
In addition to the allowances of that act, the Oversight Board may
hold a closed session to consider the appointment of one or more
candidates to the governing board of the Independent System
Operator or the Power Exchange, deliberate on matters
involving the removal of a member of the governing board of the Power
Exchange, or to consider a matter based on information that has
received a grant of confidential status pursuant to regulations of
the Oversight Board, provided that any action taken on such a matter
shall be taken by vote in an open session. 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 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. 2. Section 337 of the Public Utilities Code is repealed.
SEC. 3. Section 337 is added to the Public Utilities Code, to
read:
337. (a) The Independent System Operator governing board shall be
composed of three independent directors appointed by the Governor,
and subject to confirmation by the Senate. Any reference in this
chapter or in any other provision of law to the Independent System
Operator governing board means the independent governing board
appointed under this subdivision.
(b) A member of the independent governing board appointed under
subdivision (a) may not be affiliated with any actual or potential
participant in any market administered by the Independent System
Operator.
(c) (1) All appointments shall be for three-year terms.
(2) There is no limit on the number of terms that may be served by
any member.
(d) The Oversight Board shall require the articles of
incorporation and bylaws of the Independent System Operator to be
revised in accordance with this section, and shall make filings with
the Federal Energy Regulatory Commission as the Oversight Board
determines to be necessary.
SEC. 4. Section 338 of the Public Utilities Code is repealed.
SEC. 5. Section 338 is added to the Public Utilities Code, to
read:
338. (a) The Power Exchange governing board shall be composed of
three independent directors appointed by the Governor, and subject to
confirmation by the Senate. Any reference in this chapter or in any
other provision of law to the Power Exchange governing board means
the independent governing board appointed under this subdivision.
(b) A member of the independent governing board appointed under
subdivision (a) may not be affiliated with any actual or potential
participant in any market administered by the Power Exchange.
(c) (1) All appointments shall be for three-year terms.
(2) There is no limit on the number of terms that may be served by
any member.
(d) The Oversight Board shall require the articles of
incorporation and bylaws of the Power Exchange to be revised in
accordance with this section, and shall make such filings with the
Federal Energy Regulatory Commission as the Oversight Board
determines to be necessary.
SEC. 6. Section 341.2 of the Public Utilities Code is amended to
read:
341.2. 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) applies to meetings of the Oversight Board.
In addition to the allowances of that act, the Oversight Board may
hold a closed session to consider a matter based on information that
has received a grant of confidential status pursuant to regulations
of the Oversight Board, provided that any action taken on that matter
shall be taken by vote in an open session.