BILL ANALYSIS AB 995 Page 1 Date of Hearing: April 19, 1999 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Roderick Wright, Chair AB 995 (Wright) - As Amended: April 14, 1999 SUBJECT : Electric restructuring: transmission grid. SUMMARY : Provides policy direction for the upgrades, enhancements, or additions to the transmission grid. Specifically, this bill : 1)Establishes that the continued efficient use and reliable operation of the transmission grid is critical to this state. 2)Establishes that the efficiency and reliability of the transmission grid should be key considerations when upgrades, enhancements or additions to the transmission grid, transmission planning, siting and permitting process are developed. 3)Requires the Independent System Operator (ISO) to coordinate with participating utility transmission owners to implement the above-stated policies. EXISTING LAW authorizes the California Public Utilities Commission (CPUC) to conduct the permitting process for investor-owned utility transmission projects. Authorizes the California Energy Commission to conduct the permitting process for generation facilities 50MW and above. FISCAL EFFECT : Unknown. COMMENTS : Electric restructuring in California resulted in unbundled transmission service. Transmission planning is a continuous process. Presently, both transmission owners and ISO have roles in the planning of a reliable grid. The roles and responsibility are unclear and need to be more clearly defined. The author has been in discussion with numerous affected parties including the transmission owners, ISO, Electricity Oversight Board, and municipal utilities. This bill is an opportunity to develop clear policies for transmission planning to ensure a reliable transmission grid for California's electricity customers. REGISTERED SUPPORT / OPPOSITION : AB 995 Page 2 Support Southern California Edison (Sponsor) Opposition None on file. Analysis Prepared by : Carolyn Veal -Hunter / U. & C. / (916) 319-2083