Independent System Operator.

The existing restructuring of the electrical industry within the Public Utilities Act provides for the establishment of an Independent System Operator and a Power Exchange as nonprofit public benefit corporations. Existing law requires the Independent System Operator 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. An Electricity Oversight Board is also established to oversee the Independent System Operator and the Power Exchange in order to ensure the success of electrical restructuring and to ensure a reliable supply of electricity in the transition to a new market structure. Existing law prohibits the Independent System Operator from entering into a multistate entity or regional organization unless the Independent System Operator receives approval from the Electricity Oversight Board. This bill would authorize the Independent System Operator to enter into a multistate entity or regional organization if that entry is approved by its governing board at a duly noticed public meeting. Existing law, relative to restructuring of the electrical industry, states the intent of the Legislature with respect to the evolution of the roles of the Independent System Operator and Power Exchange, including to evolve into regional organizations to promote the development of regional electricity transmission markets in the western states and to improve the access of consumers serviced by the Independent System Operator and the Power Exchange to those markets. This bill would delete references to the Power Exchange in the above-described statement of Legislative intent.