BILL NUMBER: SB 1753 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 30, 2002
PASSED THE ASSEMBLY AUGUST 28, 2002
AMENDED IN ASSEMBLY JUNE 27, 2002
AMENDED IN ASSEMBLY JUNE 13, 2002
AMENDED IN SENATE MAY 2, 2002
INTRODUCED BY Senator Bowen
(Coauthors: Senators Burton, Dunn, 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, 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 and federal 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, reduces overall
economic cost to the state's consumers, is consistent with
applicable state law intended to protect the public's health and the
environment, and maximizes the 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 general policies of the Bagley-Keene
Open Meetings Act, and provide public access to corporate records
consistent with the general policies of the California Public Records
Act. 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.
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 and federal laws and consistent with the
interests of the people of the state.
(b) To ensure the reliability of 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) Making 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 submitted to the Independent
System Operator by an electrical corporation or a local publicly
owned electric utility to meet its own customer load.
(2) Reducing, to the extent possible, overall economic cost to the
state's consumers.
(3) Applicable state law intended to protect the public's health
and the environment.
(4) Maximizing availability of existing 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 law regarding consumer and environmental
protection.
(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.
(3) Maintain open meeting standards and meeting notice
requirements consistent with the general policies of 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's Open Meeting Policy,
as adopted on April 23, 1998, and in effect as of May 1, 2002, meets
the requirements of this paragraph. The Independent System Operator
shall maintain a policy that is no less consistent with the
Bagley-Keene Open Meetings Act than its policy in effect as of May 1,
2002.
(4) Provide public access to corporate records consistent with the
general policies of 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's Information Availability Policy, as
adopted on October 22, 1998, and in effect as of May 1, 2002, meets
the requirements of this paragraph. The Independent System Operator
shall maintain a policy that is no less consistent with the
California Public Records Act than its policy in effect as of May 1,
2002.
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.