Article 3. Independent System Operator of California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.3. >> Article 3.
The Independent System Operator shall ensure efficient use and
reliable operation of the transmission grid consistent with
achievement of planning and operating reserve criteria no less
stringent than those established by the Western Electricity
Coordinating Council and the North American Electric Reliability
(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
(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
(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
(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 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 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,
The Independent System Operator shall immediately participate
in all relevant Federal Energy Regulatory Commission proceedings. The
Independent System Operator shall ensure that additional filings at
the Federal Energy Regulatory Commission request confirmation of the
relevant provisions of this chapter and seek the authority needed to
give the Independent System Operator the ability to secure generating
and transmission resources necessary to guarantee achievement of
planning and operating reserve criteria no less stringent than those
established by the Western Electricity Coordinating Council and the
North American Electric Reliability Council.
The Independent System Operator governing board may form
appropriate technical advisory committees composed of market and
nonmarket participants to advise the Independent System Operator
governing board on issues including, but not limited to, rules and
protocols and operating procedures.
The Independent System Operator shall adopt inspection,
maintenance, repair, and replacement standards for the transmission
facilities under its control no later than September 30, 1997. The
standards, which shall be performance or prescriptive standards, or
both, as appropriate, for each substantial type of transmission
equipment or facility, shall provide for high quality, safe, and
reliable service. In adopting its standards, the Independent System
Operator shall consider: cost, local geography and weather,
applicable codes, national electric industry practices, sound
engineering judgment, and experience. The Independent System Operator
shall also adopt standards for reliability, and safety during
periods of emergency and disaster. The Independent System Operator
shall report to the Oversight Board, at such times as the Oversight
Board may specify, on the development and implementation of the
standards in relation to facilities under the operational control of
the Independent System Operator. The Independent System Operator
shall require each transmission facility owner or operator to report
annually on its compliance with the standards. That report shall be
made available to the public.
The Independent System Operator shall perform a review
following a major outage that affects at least 10 percent of the
customers of the entity providing the local distribution service. The
review shall address the cause of the major outage, the response
time and effectiveness, and whether the transmission facility owner
or operator's operation and maintenance practices enhanced or
undermined the ability to restore service efficiently and in a timely
manner. If the Independent System Operator finds that the operation
and maintenance practices of the transmission facility owner or
operator prolonged the response time or was responsible for the
outage, the Independent System Operator may order appropriate
sanctions, subject to the Federal Energy Regulatory Commission
approving that authority.
(a) Beginning January 15, 2002, and at least once monthly
thereafter, the Independent System Operator shall notify each air
pollution control district and air quality management district of the
name and address of each entity within the district's boundaries
within the Independent System Operator's control area with whom the
Independent System Operator enters into an interruptible service
contract or similar arrangement.
(b) For the purposes of this section, "interruptible service
contract or similar arrangement" means any arrangement in which a
nonresidential entity agrees to reduce or consider reducing its
electrical consumption during periods of peak demand or at the
request of the Independent System Operator in exchange for
compensation, or for assurances not to be blacked out or other
similar nonmonetary assurances.
(c) The local air pollution control district or air quality
management district shall maintain in a confidential manner the
information received pursuant to this section. However, nothing in
this subdivision shall affect the applicability of Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code, or of any other similar open records statute or
ordinance, to information provided pursuant to this section.
The Independent System Operator, in consultation with the
California Energy Resources Conservation and Development Commission,
the Public Utilities Commission, the Western Electricity Coordinating
Council, and concerned regulatory agencies in other western states,
shall within six months after the Federal Energy Regulatory
Commission approval of the Independent System Operator, provide a
report to the Legislature and to the Oversight Board that does the
(a) Conducts an independent review and assessment of Western
Electricity Coordinating Council operating reliability criteria.
(b) Quantifies the economic cost of major transmission outages
relating to the Pacific Intertie, Southwest Power Link, DC link, and
other important high voltage lines that carry power both into and
(c) Identifies the range of cost-effective options that would
prevent or mitigate the consequences of major transmission outages.
(d) Identifies communication protocols that may be needed to be
established to provide advance warning of incipient problems.
(e) Identifies the need for additional generation reserves and
other voltage support equipment, if any, or other resources that may
be necessary to carry out its functions.
(f) Identifies transmission capacity additions that may be
necessary at certain times of the year or under certain conditions.
(g) Assesses the adequacy of current and prospective institutional
provisions for the maintenance of reliability.
(h) Identifies mechanisms to enforce transmission right-of-way
(i) Contains recommendations regarding cost-beneficial
improvements to electric system reliability for the citizens of
(a) The Independent System Operator may not enter into a
multistate entity or a regional organization as authorized in Section
359 unless that entry is approved by the Oversight Board.
(b) This section becomes inoperative on the date on which the
governance modifications set forth in Section 359.5 become effective
and is repealed on January 1 of the following year.
(a) The Independent System Operator shall make publicly
available a list of all power plants located in the state that are
not operational due to a planned or unplanned outage.
(b) For the purposes of complying with subdivision (a), the
Independent System Operator shall make the list available over the
(c) The Independent System Operator shall update the list
established pursuant to subdivision (a) on a daily basis.
(a) It shall be unlawful for a person to intentionally
disclose proprietary information obtained in the negotiation,
execution, or performance of a consulting services contract, as
defined in Section 10335.5 of the Public Contract Code, or an
information technology contract, as defined in Section 11702 of the
Government Code, with the Independent System Operator when the
contracting party knew or should have known that the disclosure was
likely to cause harm.
(b) A violation of this section shall be punishable as a
misdemeanor and may be prosecuted by the Attorney General or by a
local district attorney in the district in which the disclosure took
(c) (1) For the purposes of this section "proprietary information"
shall include any information agreed by the contracting parties to
be proprietary, or any information that is designated by the
Independent System Operator to be proprietary. The Independent System
Operator shall provide written notification to a contracting party
of any information that, subsequent to the execution of the contract,
is identified to be proprietary. The Independent System Operator
shall make this designation only in cases where the Independent
System Operator has reason to believe that the release of this
information poses an immediate threat to the health, safety, or
welfare of the public or the Independent System Operator has reason
to believe that the contracting party intends to sell the
information. If the Independent System Operator makes a designation
of proprietary information subsequent to the execution of the
contract, the Independent System Operator shall make a good faith
effort to amend the contract to incorporate the subsequent
designation of proprietary information. The Independent System
Operator shall specifically identify in the contract any information
that is considered to be proprietary. A contracting party is not in
violation of this section if that party discloses information prior
to the receipt of the written notification.
(2) Any information that is required to be released or disclosed
by a contracting party pursuant to a legal requirement, including an
order of a court or regulatory agency, shall not be considered a
violation of this section.