BILL NUMBER: SB 1753	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 2, 2002

INTRODUCED BY   Senator Bowen
   (Coauthors: Senators Burton, Dunn,  and Sher 
 Sher, and Speier  )

                        FEBRUARY 21, 2002

   An act to add Section 345.5 to the Public Utilities Code, relating
to public utilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1753, as amended, Bowen.  Independent System Operator:  duties.

   (1) Existing law provides for the establishment of an Independent
System Operator, a nonprofit, public benefit corporation, to ensure
efficient use and reliable operation of the electrical transmission
grid.
   This bill would require the Independent System Operator to conduct
its operations consistent with applicable state laws and consistent
with the interests of the people of the state.  The bill would also
require the Independent System Operator to manage the transmission
grid  and related energy markets  in a manner that makes the
most efficient use of available energy resources, 
facilitates reliable electricity service at the least economic and
environmental cost to the state's consumers  assures the
least overall economic cost to the state's consumers, is consistent
with state policies intended to protect the public's health and the
environment, and assures the maximum availability of electric
generation resources necessary to meet the needs of the state's
electricity consumers  .  The bill would also require the
Independent System Operator to ensure that its purposes and functions
are consistent with those of a nonprofit public benefit corporation,
maintain open meetings  consistent with the Bagley-Keene Open
Meetings Act  , and provide public access to corporate records
 consistent with the California Public Records Act  .  
The bill would authorize the Independent System Operator's governing
board to adopt exceptions to the requirement to maintain open
meetings and provide public access to corporate records if it finds
the exceptions further the purposes of the governing acts. 
Since under existing law a violation of the bill's requirements would
be a crime, this bill would impose a state-mandated local program by
changing the definition of a crime.
  (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.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 345.5 is added to the Public Utilities Code, to
read:
   345.5.   (a)  The Independent System Operator, as a
nonprofit, public benefit corporation, shall conduct its operations
consistent with applicable state laws and consistent with the
interests of the people of the state.   The Independent
System Operator shall do all of the following:
   (a) Manage the transmission grid and related energy markets in a
manner that makes the most efficient use of available energy
resources and facilitates reliable electricity service at the least
overall economic and environmental cost to the state's consumers.
   (b)  
   (b) To ensure the reliability of retail electric service and the
health and safety of the public, the Independent System Operator
shall manage the transmission grid and related energy markets in a
manner that is consistent with all of the following:
   (1) Makes the most efficient use of available energy resources.
For purposes of this section "available energy resources" include
energy, capacity, ancillary services, and demand bid into markets
administered by the Independent System Operator.  "Available energy
resources" do not include a schedule of bilateral energy contracts or
generation submitted to the Independent System Operator by an
electrical corporation or a local publicly owned electric utility to
meet its own customer load.
   (2) Assures the least overall economic cost to the state's
consumers.
   (3) Is consistent with state policies intended to protect the
public's health and the environment.
   (4) Assures maximum availability of electric generation resources
necessary to meet the needs of the state's electricity consumers.
   (c) The Independent System Operator shall do all of the following:

   (1)  Consult and coordinate with appropriate state and local
agencies to ensure that the Independent System Operator operates in
furtherance of state policies regarding consumer and environmental
protection.  
   (c)  
   (2)  Ensure that the purposes and functions of the
Independent System Operator are consistent with the purposes and
functions of nonprofit, public benefit corporations in the state,
including duties of care and conflict-of-interest standards for
officers and directors of a corporation.  
   (d)  
   (3)  Maintain open meeting standards and meeting notice
requirements consistent with the Bagley-Keene Open Meetings Act
(Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of
the Government Code) and affording the public the greatest possible
access, consistent with other duties of the corporation.   The
Independent System Operator governing board may adopt exceptions to
the strict requirements of the act, including, but not limited to,
decreasing the notice requirement for public meetings, if it finds
that the exceptions further the purposes of the act.  
   (e)  
   (4)  Provide public access to corporate records consistent
with the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code) and
affording the public the greatest possible access, consistent with
the other duties of the corporation.   The Independent System
Operator governing board may adopt exceptions to the strict
requirements of the act if it finds that the exceptions further the
purposes of the act. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B 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 XIII B of the California
Constitution.