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 SB 1753 Page 2 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 SB 1753 Page 3 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 Page 4 Support Public Utilities Commission California Municipal Utilities Association Opposition None on file Analysis Prepared by : Daniel Kim / G. O. / (916) 319-2531