Section 334 Of Article 2. Oversight Board From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.3. >> Article 2.
334
. The Legislature finds and declares that in order to ensure the
success of electric industry restructuring, in the transition to a
new market structure it is important to ensure a reliable supply of
electricity. Reliable electric service is of paramount importance to
the safety, health, and comfort of the people of California.
Transmission connections between electric utilities allow them to
share generation resources and reduce the number of powerplants
necessary to maintain a reliable system. The connections between
utilities also create exposure to events that can cause widespread
and extended transmission and service outages that reach far beyond
the originating utility service area. California utilities and those
in the western United States voluntarily adhere to reliability
standards developed by the Western Electricity Coordinating Council.
The economic cost of extended electricity outages, such as those that
occurred in California and throughout the Western Electricity
Coordinating Council on July 2, 1996, and August 10, 1996, to
California's residential, commercial, agricultural, and industrial
customers is significant. The proposed restructuring of the
electricity industry would transfer responsibility for ensuring
short- and long-term reliability away from electric utilities and
regulatory bodies to the Independent System Operator and various
market-based mechanisms. The Legislature has an interest in ensuring
that the change in the locus of responsibility for reliability does
not expose California citizens to undue economic risk in connection
with system reliability.