BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 920|
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UNFINISHED BUSINESS
Bill No: SB 920
Author: Bowen (D)
Amended: 8/18/03
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 5-1, 4/22/03
AYES: Bowen, Alarcon, Dunn, Murray, Sher
NOES: Morrow
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 23-11, 5/22/03
AYES: Alarcon, Alpert, Bowen, Burton, Cedillo, Chesbro,
Ducheny, Dunn, Figueroa, Florez, Karnette, Kuehl,
Machado, McClintock, Murray, Ortiz, Perata, Scott, Sher,
Soto, Torlakson, Vasconcellos, Vincent
NOES: Aanestad, Ackerman, Brulte, Denham, Hollingsworth,
Johnson, Knight, Margett, McPherson, Oller, Poochigian
ASSEMBLY FLOOR : 76-2, 8/25/04 - See last page for vote
SUBJECT : Electricity Oversight Board: Independent
System Operator:
Power Exchange
SOURCE : Author
DIGEST : This bill repeals the statutes establishing the
Electricity Oversight Board and makes related changes to
provisions concerning the Independent System Operator and
the Power Exchange.
CONTINUED
SB 920
Page
2
Assembly amendments make changes without altering the
intent.
ANALYSIS : AB 1890 (Brulte), Chapter 854, Statutes of
1996, established the Electricity Oversight Board (EOB) to
oversee the Independent System Operator (ISO) and the Power
Exchange (PX) and to "ensure that the interests of the
people of California are served." Originally, the EOB was
supposed to serve as an appellate body for decisions of the
ISO and PX governing boards.
The Federal Energy Regulatory Commission (FERC) took
exception to these provisions and, in 1998, ordered the ISO
to change its bylaws to eliminate the EOB's appointment
function, as well as the EOB's authority to approve ISO
bylaws and hear appeals of ISO governing board decisions.
In the face of its order's conflict with the provisions of
AB 1890, FERC maintained that AB 1890's requirements were
preempted by the Federal Power Act
SB 96 (Peace), Chapter 510, Statutes of 1999, in a
compromise with FERC, limited the EOB's confirmation powers
to the appointments of customer representatives to the ISO
governing board. It also limited the EOB's authority to
serve as an appeal board for decisions made by the ISO to
matters that are exclusively within the jurisdiction of the
state.
With the passage of SB 96, the demise of the PX, the
passage of AB 5X (Keeley), Chapter 1, Statutes of 2001, to
establish an ISO board appointed by the Governor, and SB 47
(Bowen), Chapter 766, Statutes of 2001, to require Senate,
rather than EOB, confirmation of ISO board members, the
powers of the EOB have been substantially diminished. The
EOB's remaining functions are to investigate wholesale
electricity market activities and participate in FERC
proceedings as one of the state's representatives.
This bill eliminates the EOB and transfers all legal and
regulatory proceedings where EOB is a party as specified
and makes related changes to provisions concerning the ISO
and the PX. Specifically, this bill:
SB 920
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3
1. Deletes provisions of law establishing, and granting
powers to EOB, which includes oversight of ISO.
2. Requires the corporate powers of ISO, under the
Corporations Code, to be exercised only by a governing
board appointed by the Governor and confirmed by the
Senate.
3. Specifies that it is the intent of the Legislature to
abolish EOB as an agency of the State of California, and
to preserve the state's interest in any legal or
regulatory proceedings where EOB is a party by
transferring the state's interest to the Attorney
General. The Attorney General is vested with the power
to exercise all rights, claims, powers or entitlements
of EOB in legal and regulatory proceedings, contracts,
settlements, tariffs, bylaws and articles of
incorporation.
4. Requires the Governor to designate a successor for EOB's
nonlitigation duties, including monitoring and
investigation of wholesale electricity markets, and for
any litigation where the Attorney General has a
conflict.
5. Requires ISO to receive approval from the Legislature
before entering into a multi-state entity or a regional
organization.
6. Deletes an obsolete provision requiring ISO to provide a
report to the Legislature six months after FERC
approval, which was done in 2000.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Calderon, Campbell, Canciamilla, Chan, Chavez, Chu,
Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz,
Dutra, Dutton, Dymally, Firebaugh, Frommer, Garcia,
Goldberg, Hancock, Harman, Jerome Horton, Shirley Horton,
Houston, Jackson, Keene, Kehoe, La Suer, Laird, Leno,
Levine, Lieber, Liu, Longville, Lowenthal, Maddox,
SB 920
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4
Maldonado, Matthews, Maze, McCarthy, Montanez, Mountjoy,
Mullin, Nakanishi, Nakano, Nation, Negrete McLeod,
Oropeza, Pacheco, Parra, Pavley, Plescia, Reyes, Richman,
Ridley-Thomas, Runner, Salinas, Samuelian, Simitian,
Spitzer, Steinberg, Strickland, Vargas, Wesson, Wiggins,
Wolk, Wyland, Yee, Nunez
NOES: Haynes, La Malfa
NO VOTE RECORDED: Koretz, Leslie
NC:sl 8/26/04 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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