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  :









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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