BILL ANALYSIS
SB 1753
Page 1
Date of Hearing: August 19, 2002
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Jerome Edgar Horton, Chair
SB 1753 (Bowen) - As Amended: June 27, 2002
SENATE VOTE : 21-12
SUBJECT : Independent System Operator: duties
SUMMARY : Modifies the duties of the Independent System Operator
(ISO). Specifically, this bill :
1)Requires ISO to conduct its operations consistent with
applicable state and federal laws and consistent with the
interests of the people of the state.
2)Specifies, that to ensure electric service reliability and
public health and safety, ISO shall manage the electric grid
and markets consistent with:
a) Making the most efficient use of available energy
resources.
b) Reducing overall economic costs to consumers.
c) Applicable state law intended to protect public health
and safety.
d) Maximizing availability of existing electric generation
resources necessary to meet needs.
3)Directs ISO to:
a) Consult and coordinate with appropriate state and local
agencies to ensure that ISO operates in furtherance of
state laws governing environmental and consumer protection.
b) Ensure that the purposes and functions of ISO are
consistent with the purposes and functions of non-profit
public benefit corporations in the state, including
conflict of interest standards for officers and directors
of a corporation.
c) Maintain open meeting standards consistent with open
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meeting statutes applicable to state agencies.
d) Provide public access to corporate records, consistent
with the general policies of the California Public Records
Act.
EXISTING LAW
1)Establishes ISO as a non-profit, public benefit corporation,
to ensure efficient use and reliable operation of the electric
transmission grid.
2)Provides for the formation and regulation of non-profit public
benefit corporations.
3)Requires officers and directors of a non-profit public benefit
corporation to perform their duties in the best interests of
the corporation, with such care as an ordinarily prudent
person in a like position would use under similar
circumstances.
FISCAL EFFECT : Unknown
COMMENTS :
Bagley-Keene Act: The Bagley-Keene Open Meeting Act requires all
meetings of a state body to be open and public and grants the
right to attend such meetings to all persons, with certain
exceptions. The Act requires these public meetings to be
noticed with an agenda that contains the items of business that
may be acted upon at the meeting. The Act defines a state body
to mean every state board, commission, or similar multimember
body of the state that is created by statute or required by law
to conduct official meetings and every commission created by
executive order. In addition, the Act excludes from that
definition certain bodies of the Judiciary and Legislature,
among other things.
Public Records Act: The California Public Records Act
establishes the right of every person to inspect and obtain
copies of all state and local government documents and records
not exempt from disclosure. The Act requires specified state
and local agencies to establish written guidelines for
accessibility of records, to post these guidelines at their
offices, and to make them available free of charge to any person
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requesting that agency's records.
California ISO Open Meeting Policy: The ISO open meeting policy
encourages members of the public to attend and observe the
proceedings of its Governing Board in accordance with its
Bylaws.
The ISO open meeting policy applies to all meetings of the ISO
Governing Board and all Governing Board standing, advisory, and
ad hoc committees. The open meeting policy also requires that
all formal actions taken by the Board, including any collective
decision by the members of the Board, any collective commitment
or promise by the members of the Board to make a positive or
negative decision, and any actual vote on any motion, proposal,
resolution, order or similar action, shall be taken by the Board
in a properly-noticed open meeting or properly-noticed
closed/executive session.
The ISO open meeting policy also requires that notice of Board
meetings shall be delivered six calendar days prior to the
calendar day of the meeting if the Notice is provided by first
class mail, or four calendar days prior to a meeting if the
Notice is provided personally or by telephone, facsimile or
electronic mail.
Does requiring the ISO open meeting policy to conform with the
state open meetings and records laws create a legal problem for
the ISO since it is a private non-government corporation that
handles confidential information from private utility companies?
The bill requires that the ISO open meeting and public records
act policies at minimum meet the standards of the Bagley-Keene
Act and the state open records act. In the Assembly Utilities
and Commerce Committee analysis the concern was raised that the
ISO is a private, Non-government Corporation, which is not
required to abide by state open meeting and records policies.
The U&C Committee also noted that this bill prohibits ISO from
modifying its Information Availability Policy if it results in a
policy that is less consistent with the Public Records Act.
Does this requirement jeopardize the ISO's ability to meet the
conditions of confidentiality agreements between it and private
utilities when they release their information to the ISO?
REGISTERED SUPPORT / OPPOSITION :
SB 1753
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Support
Public Utilities Commission
California Municipal Utilities Association
Opposition
None on file
Analysis Prepared by : Daniel Kim / G. O. / (916) 319-2531