BILL ANALYSIS
Appropriations Committee Fiscal Summary
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| |1753(Bowen) |
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|Hearing Date: 5/6/02 |Amended: 5/02/02 |
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|Consultant: Lisa Matocq |Policy Vote: E, U & C 6-2 |
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BILL SUMMARY:
SB 1753 requires the Independent System Operator (ISO) to
abide by certain public interest principles, as specified,
in managing the transmission grid.
Fiscal Impact (in thousands)
Major Provisions 2002-03 2003-04
2004-05 Fund
ISO No direct state costs - see comments below
STAFF COMMENTS: The ISO is a nonprofit public benefit
corporation which was established in 1997 to ensure
efficient use and reliable operation of the state's
electricity transmission system (grid). This bill requires
the ISO to conduct its operations consistent with
applicable state laws and in the interest of the people of
the state. It also requires the ISO to manage the grid and
energy markets in a manner that:
1.makes the most efficient use of available energy
resources,
2.assures the least overall economic cost to consumers,
3.is consistent with, and furthers as appropriate, state
policies intended to protect public health and the
environment,
4.assures maximum availability of electric generation
resources necessary to meet demand.
The bill also makes changes related to public meetings and
public access to specified documents.
The ISO receives no state funding, but rather derives its
revenues from a surcharge on electricity. The current
surcharge is less than 1%. The bill imposes no direct
costs on the state. However, ISO staff have estimated
potentially significant costs for implementation of this
bill. For example, ISO staff believe that Item #4 above
could require them to procure, at significant cost, new
generation. STAFF NOTES that the author may offer an
amendment on page 3, line 8, after "of" insert "existing"
to clarify that the ISO would not be required to invest in
new generation resources. To the extent that any increased
costs result in an increase in the surcharge, there could
be indirect costs to the state as a ratepayer. The state's
energy costs are in the hundreds of millions of dollars
annually. On the other hand, if implementation of this
bill results in more efficient or economical management of
the grid and electricity resources, there could be indirect
cost savings, should the surcharge decrease.