(1) The existing restructuring of the electrical services industry within the Public Utilities Act provides for the establishment of an Independent System Operator and a Power Exchange as separately incorporated public benefit, nonprofit corporations. An Electricity Oversight Board (Oversight Board) is also established to oversee the Independent System Operator and the Power Exchange in order to ensure the success of electric industry restructuring and to ensure a reliable supply of electricity in the transition to a new market structure. The Oversight Board is granted various powers in order to carry out these purposes.

This bill would expand the authority of the Oversight Board to act on any matters made subject to the approval or determination by the Oversight Board under law, and to investigate any matter and otherwise act consistent with these provisions to ensure that the interests of California’s citizens and consumers are served, protected, and represented in relation to the electric transmission grid and generation system and related costs.

The bill would require that electric generation and transmission facilities be subject to various prescribed availability standards. The bill would require the Independent System Operator to annually prepare and submit to the Oversight Board a proposed protocol for the scheduling of transmission and generation equipment outages for the purpose of maintenance, repair, or upgrade, that is required to be reviewed, approved or revised by the Oversight Board after notice and public hearing. The bill would require the Independent System Operator to utilize the approved protocol for the purpose of scheduling maintenance or other planned outages of equipment and to submit a coordinated outage plan to the Oversight Board. The bill would require the Independent System Operator to develop and submit proposed generation facility maintenance criteria for approval by the Oversight Board after notice and public hearing. The bill would require the Independent System Operator to maintain records of generation facility outages and provide those records to the Oversight Board on a daily basis. The bill would require entities that own or operate certain electric generating facilities to provide reports on a monthly basis to the Oversight Board that identify any periods the facilities were unavailable to produce electricity or were available at reduced capacity. The bill would authorize the Independent System Operator and the Oversight Board to engage in audits or inspection of facilities that fail to comply with procedures, criteria, or standards established pursuant to these provisions. The bill would require owners or operators of generation or transmission facilities to provide the Independent System Operator and the Oversight Board with information and access to the facilities as necessary to accomplish reasonable audits and inspections. The bill would authorize the Oversight Board to direct the production of certain information from the Independent System Operator or owners or operators of generator or transmission facilities, and would provide for confidentiality of information in certain cases. The bill would authorize the Oversight Board to assess a monetary penalty against an owner or operator of a facility found to have failed to comply with criteria, standards, or procedures established pursuant to these provisions. Since Because a violation of the Public Utilities Act is a crime under existing provisions of law, the bill would create a state-mandated local program by expanding the definition of a crime.

This bill would enact other related provisions. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.