Independent System Operator.

The existing restructuring of the electrical industry within the Public Utilities Act provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation. Existing law requires the ISO to manage the transmission grid and related energy markets in a manner that is consistent with (1) making the most efficient use of available energy resources, (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, and (4) maximizing the availability of existing electric generation resources necessary to meet the needs of the state's electricity consumers. This bill would, in addition, require the ISO to manage the transmission grid and related energy markets in a manner that is consistent with (5) conducting internal operations in a manner that minimizes cost impact on ratepayers to the extent practicable and consistent with the provisions applicable to the operation of the ISO and (6) communicating with all balancing area authorities in California in a manner that supports electrical reliability. The Public Utilities Act provides that every corporation or person, other than a public utility and its officers, agents, and employees, that fails to comply with the act is guilty of a crime. Because the requirements of this bill are within the act, the bill would impose a state-mandated local program by expanding the application of a crime. 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. This bill would provide that no reimbursement is required by this act for a specified reason.