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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
markets.
(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 Operator.
(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 System Operator.
(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(3) If the governance modifications set forth in Section 359.5 become effective, this article is repealed on January 1 of the year following the effective date of the governance modifications.
(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 Operator.
(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 System Operator.
(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.
