BILL NUMBER: SB 47 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 13, 2001
PASSED THE ASSEMBLY SEPTEMBER 12, 2001
AMENDED IN ASSEMBLY SEPTEMBER 10, 2001
AMENDED IN ASSEMBLY JUNE 19, 2001
AMENDED IN SENATE APRIL 18, 2001
INTRODUCED BY Senator Bowen
DECEMBER 8, 2000
An act to amend Sections 335, 337, and 341.2 of the Public
Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 47, Bowen. Electrical restructuring: Oversight Board:
Independent System Operator.
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. 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. 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 authorize the Electricity Oversight Board to
investigate any matter related to the wholesale market for
electricity. 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 make a conforming change in existing law.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
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) 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 investigate any matter related to the wholesale market for
electricity to ensure that the interests of California's citizens and
consumers are served, protected, and represented in relation to the
availability of electric transmission and generation and related
costs, during periods of peak demand.
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) The Independent System Operator governing board shall be
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.
(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.
(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 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.