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AB-1207 Electrical restructuring: Electricity Oversight Board.(2019-2020)

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Date Published: 02/22/2019 04:00 AM


Assembly Bill
No. 1207

Introduced by Assembly Member Fong

February 21, 2019

An act to amend Section 334 of the Public Utilities Code, relating to electricity.


AB 1207, as introduced, Fong. Electrical restructuring: Electricity Oversight Board.
Existing law, enacted as part of the restructuring of the electrical industry, provides for the establishment an Electricity Oversight Board to perform specified functions, including overseeing the Independent System Operator and the Power exchange and to investigate any matter related to the wholesale market for electricity to ensure that the interests of California’s citizens and consumers are served, protected, and represented in relation to the availability of electric transmission and generation and related costs, during periods of peak demand.
This bill would make nonsubstantive revisions to certain legislative findings and declarations relative to electric restructuring.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


 Section 334 of the Public Utilities Code is amended to read:

 The Legislature finds and declares that in order to ensure the success of electric industry electrical restructuring, in the transition to a new market structure it is important to ensure a reliable supply of electricity. Reliable electric electrical service is of paramount importance to the safety, health, and comfort of the people of California. Transmission connections between electric electrical utilities allow them to share generation resources and reduce the number of powerplants necessary to maintain a reliable system. The connections between utilities also create exposure to events that can cause widespread and extended transmission and service outages that reach far beyond the originating utility service area. California utilities and those in the western United States voluntarily adhere to reliability standards developed by the Western Electricity Coordinating Council. The economic cost of extended electricity outages, such as those that occurred in California and throughout the Western Electricity Coordinating Council on July 2, 1996, and August 10, 1996, to California’s residential, commercial, agricultural, and industrial customers is significant. The proposed restructuring of the electricity electrical industry would transfer responsibility for ensuring short- and long-term reliability away from electric electrical utilities and regulatory bodies to the Independent System Operator and various market-based mechanisms. The Legislature has an interest in ensuring that the change in the locus of responsibility for reliability does not expose California citizens to undue economic risk in connection with system reliability.