Article 5. Regional Compact of California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.3. >> Article 5.
(a) It is the intent of the Legislature to provide for the
evolution of the Independent System Operator into a regional
organization to promote the development of regional electricity
transmission markets in the western states and to improve the access
of consumers served by the Independent System Operator to those
(b) The preferred means by which the voluntary evolution described
in subdivision (a) should occur is through the adoption of a
regional compact or other comparable agreement among cooperating
party states, the retail customers of which states would reside
within the geographic territories served by the Independent System
(c) The agreement described in subdivision (b) should provide for
all of the following:
(1) An equitable process for the appointment or confirmation by
party states of members of the governing boards of the Independent
(2) A respecification of the size, structure, representation,
eligible membership, nominating procedures, and member terms of
service of the governing boards of the Independent System Operator.
(3) Mechanisms by which each party state, jointly or separately,
can oversee effectively the actions of the Independent System
Operator as those actions relate to the assurance of electricity
system reliability within the party state and to matters that affect
electricity sales to the retail customers of the party state or
otherwise affect the general welfare of the electricity consumers and
the general public of the party state.
(4) The adherence by publicly owned and investor-owned utilities
located in party states to enforceable standards and protocols to
protect the reliability of the interconnected regional transmission
and distribution systems.
(d) (1) Except for paragraphs (2) and (3), this section becomes
inoperative on January 1, 2016.
(2) This section becomes operative on January 1, 2019, if Article
5.5 (commencing with Section 359.5) becomes inoperative on that date.
(3) If the governance modifications set forth in Section 359.5
become effective, this article is repealed on January 1 of the year
following the effective date of the governance modifications.