CA Codes (puc:334-341.5)PUBLIC UTILITIES CODE
SECTION 334-341.5
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.
335. In order to ensure that the interests of the people of
California are served, a five-member Electricity Oversight Board is
hereby created as provided in Section 336. For purposes of this
chapter, any reference to the Oversight Board shall mean the
Electricity Oversight Board. Its functions shall be all of the
following:
(a) To oversee the Independent System Operator and the Power
Exchange.
(b) To determine the composition and terms of service and to
exercise the exclusive right to decline to confirm the appointments
of specific members of the governing board of the Power Exchange.
(c) To serve as an appeal board for majority decisions of the
Independent System Operator governing board, as they relate to
matters subject to exclusive state jurisdiction, as specified in
Section 339.
(d) Those members of the Power Exchange governing board whose
appointments the Oversight Board has the exclusive right to decline
to confirm include proposed
