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SB-708 Electricity: Independent System Operator.(2019-2020)

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Date Published: 02/22/2019 09:00 PM
SB708:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 708


Introduced by Senator Hueso

February 22, 2019


An act to amend Section 345.5 of the Public Utilities Code, relating to electricity.


LEGISLATIVE COUNSEL'S DIGEST


SB 708, as introduced, Hueso. Electricity: Independent System Operator.
Existing law provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation, and requires the ISO to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council. Existing law requires the ISO to maintain open meeting standards and meeting notice requirements consistent with the general policies of the Bagley-Keene Open Meeting Act and states that specified policies adopted by the ISO meet this requirement. Existing law requires the ISO to provide corporate records consistent with the general policies of the California Public Records Act and states specified policies adopted by the ISO meet this requirement.
This bill would require that the ISO maintain open meeting standards and meeting notice requirements consistent with the requirements of the Bagley-Keene Open Meeting Act, rather than requiring that those standards meet the general policies of that act, and would strike references to specified policies adopted by the ISO.
This bill would require that the ISO provide public access to corporate records consistent with the requirements of the California Public Records Act, rather than requiring that the ISO provide public access consistent with the general policies of that act, and would strike references to specified policies adopted by the ISO.
The bill would require the ISO to work with specified state agencies to support state policy goals, to make data available to state agencies, and to assist with the development of long-term resource planning objectives. The bill would require ISO to publicly disclose specified information relating to tariff or rule of conduct violations by market participants. The bill would require the chief executive officer and the chair of the governing board to appear annually before specified committees of the Legislative, as specified. The bill would subject the books, records, and financial documents of the ISO to inspection by the Joint Legislative Audit Committee and the State Auditor.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 345.5 of the Public Utilities Code is amended to read:

345.5.
 (a) The Independent System Operator, as a nonprofit, public benefit corporation, shall conduct its operations consistent with applicable state and federal laws and consistent with the interests of the people of the state.
(b) To ensure the reliability of electric service and the health and safety of the public, the Independent System Operator shall manage the transmission grid and related energy markets in a manner that is consistent with all of the following:
(1) Making the most efficient use of available energy resources. For purposes of this section, “available energy resources” include energy, capacity, ancillary services, and demand bid into markets administered by the Independent System Operator. “Available energy resources” do not include a schedule submitted to the Independent System Operator by an electrical corporation or a local publicly owned electric utility to meet its own customer load.
(2) Reducing, to the extent possible, overall economic cost to the state’s consumers.
(3) Applicable state law intended to protect the public’s health and the environment.
(4) Maximizing availability of existing electric generation resources necessary to meet the needs of the state’s electricity consumers.
(5) Conducting internal operations in a manner that minimizes cost impact on ratepayers to the extent practicable and consistent with the provisions of this chapter.
(6) Communicating with all balancing area authorities in California in a manner that supports electrical reliability.
(c) The Independent System Operator shall do all of the following:
(1) Consult and coordinate with appropriate state and local agencies to ensure that the Independent System Operator operates in furtherance of state law regarding consumer and environmental protection.
(2) Ensure that the purposes and functions of the Independent System Operator are consistent with the purposes and functions of nonprofit, public benefit corporations in the state, including duties of care and conflict-of-interest standards for officers and directors of a corporation.
(3) Maintain open meeting standards and meeting notice requirements consistent with the general policies requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) and affording the public the greatest possible access, consistent with other duties of the corporation. The Independent System Operator’s Open Meeting Policy, as adopted on April 23, 1998, and in effect as of May 1, 2002, meets the requirements of this paragraph. The Independent System Operator shall maintain a policy that is no less consistent with the Bagley-Keene Open Meeting Act than its policy in effect as of May 1, 2002.
(4) Provide public access to corporate records consistent with the general policies requirements of the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and affording the public the greatest possible access, consistent with the other duties of the corporation. The Independent System Operator’s Information Availability Policy, as adopted on October 22, 1998, and in effect as of May 1, 2002, meets the requirements of this paragraph. The Independent System Operator shall maintain a policy that is no less consistent with the California Public Records Act than its policy in effect as of May 1, 2002.
(d) The Independent System Operator shall work with the State Air Resources Board, the Energy Commission, and the commission to support state policy goals, and shall make data available to state agencies in any format requested and assist with the development and implementation of policies designed to achieve long-term resource planning objectives.
(e) The Independent System Operator shall publicly disclose information relating to tariff or rule of conduct violations by market participants or scheduling coordinators. Those public disclosures shall be posted on the internet website of the Independent System Operator and shall identify the name of the violator, the amount of financial sanction, and the specific violations attributable to any individual entity.
(f) (1) The chief executive officer and the chair of the governing board of the Independent System Operator shall appear annually before the fiscal committee of each house of the Legislature to present the organizational budget, including a breakdown of salaries and compensation packages for all officers, for informational purposes.
(2) The chief executive officer shall annually appear before the appropriate policy committees of the Senate and the Assembly to present on the state of the grid and the operations of the Independent System Operator.
(g) The books, records, and financial documents of the Independent System Operator shall be open to inspection by the Joint Legislative Audit Committee and the State Auditor.