CaliforniaIndependent System Operator: independent regional organization.
What it does
(1) Existing law provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council. Existing law, the Clean Energy and Pollution Reduction Act of 2015, provides for the transformation of the ISO into a regional organization, with the approval of the Legislature, pursuant to a specified process. That process provides that modifications to the ISO's governance structure, through changes to its bylaws or other corporate governance documents, will not become effective until the ISO, the Public Utilities Commission (PUC), the State Energy Resources Conservation and Development Commission (Energy Commission), the State Air Resources Board (state board), the Governor, and the Legislature take specified actions on or before January 1, 2019.
More detail
This bill would delete the above-described provisions providing for the transformation of the ISO into a regional organization. The bill would authorize the ISO and the electrical corporations that are participating transmission owners whose transmission systems are operated by the ISO to use voluntary energy markets governed by an independent regional organization, only if specified requirements are satisfied. The bill would authorize the ISO, on or after January 1, 2028, to implement tariff modifications accepted by the Federal Energy Regulatory Commission to operate the energy markets whose rules are governed by an independent regional organization if the governing board of the ISO has adopted a resolution, as specified, finding that each of the specified requirements have been, or will be, adopted by the independent regional organization. The bill would require the PUC to make a determination through a formal decision in an existing or new proceeding that these requirements have been satisfied before electrical corporations participate in an energy market governed by an independent regional organization. The bill would require the ISO to maintain the necessary technical capability to operate energy markets, as specified, and would require the ISO to continue its functions and responsibilities as a balancing authority, as provided.
This bill would require the ISO to develop, publish, and annually update a report on certain activities of the ISO and, if applicable, an independent regional organization, as provided. The bill would require the chair of the board of governors and the chief executive officer of the ISO to annually appear before the appropriate policy committees of the Legislature to present the report, as specified.
(2) Existing law establishes the California Renewables Portfolio Standard Program, which requires the PUC to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, at specified percentages of the total kilowatthours sold to their retail end-customers during specified compliance periods. The program, consistent with the goals of procuring the least-cost and best-fit eligible renewable energy resources that meet project viability principles, requires that all retail sellers procure a balanced portfolio of electricity products from eligible renewable energy resources, as specified, referred to as the portfolio content category requirements.
This bill would require the PUC and the Energy Commission to coordinate to revise any relevant rules, regulations, or guidance to ensure that the transition to a regional energy market governed by the ISO or the independent regional organization does not expand the types of transactions that meet the portfolio content category requirements, as compared to the transactions that would otherwise meet those requirements on December 31, 2025.
(3) Existing law requires the Power Exchange to provide an efficient competitive auction, open on a nondiscriminatory basis to all suppliers, that meets the loads of all exchange customers at efficient prices, and authorizes the Power Exchange governing board to form appropriate technical advisory committees composed of market and nonmarket participants to advise the governing board on relevant issues.
This bill would delete these provisions.
(4) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because certain provisions of this bill would be part of the act and a violation of a PUC action implementing the bill's requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Sep 19Chaptered by Secretary of State - Chapter 116, Statutes of 2025.Latest
- Sep 19Approved by the Governor Gavin Newsom.Became Law
- Sep 13Enrolled and presented to the Governor at 1:30 p.m.To Governor
- Vote recorded AB 825 PETRIE-NORRIS Concurrence in Senate Amendments. Result: pass.Lower
- Vote recorded 2nd Reading AB825 Petrie-Norris et al. By Becker. Result: pass.Upper
- Sep 13Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 1. Page 3490.).Major
- Sep 13Assembly Rule 63 suspended. (Page 3490.)
- Sep 13Joint Rules 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3413.)
- Sep 13In Assembly. Concurrence in Senate amendments pending.
- Sep 13Read third time. Passed. Ordered to the Assembly. (Ayes 34. Noes 0. Page 3050.).Passed Senate
- Sep 12Senate Rule 29 suspended. (Page 2961.)
- Sep 12Joint Rule 10.5 suspended. (Ayes 29. Noes 8. Page 2958.)
- Sep 12Read second time. Ordered to third reading.Minor
- Sep 11Assembly suspended Joint Rule 62(a). (Page 3312.)
- Vote recorded Do pass. Result: pass.Upper
- Sep 11From committee: Do pass. (Ayes 12. Noes 0.) (September 11).Minor
- Sep 10Re-referred to Com. on E., U & C.Minor
- Sep 10Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(C).Minor
- Sep 10Read third time and amended. Ordered to second reading.Major
- Sep 10Joint Rules 61 and 62(a) suspended. (Ayes 30. Noes 8. Page 2760.)
- Aug 29Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 29From committee: Do pass. (Ayes 5. Noes 2.) (August 29).Minor
- Aug 18In committee: Referred to suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jul 16From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 1.) (July 15). Re-referred to Com. on APPR.Minor
- Jul 15
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jul 14From committee: Do pass and re-refer to Com. on E., U & C. (Ayes 8. Noes 3.) (July 14). Re-referred to Com. on E., U & C.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Energy, Utilities and Communications]. Result: pass.Upper
- Jul 9Re-referred to Coms. on B. P. & E.D. and E., U & C.Minor
- Jul 9Withdrawn from committee.Major
- Jun 18Referred to Coms. on E., U & C. and B. P. & E.D.Minor
- Jun 9In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Jun 5Read third time. Passed. Ordered to the Senate. (Ayes 57. Noes 5. Page 2106.)Passed Assembly
- Vote recorded AB 825 Petrie-Norris Assembly Third Reading. Result: pass.Lower
- Jun 4Read second time. Ordered to third reading.Minor
- Jun 3From committee: Do pass. (Ayes 13. Noes 0.) (June 3).Minor
- Vote recorded Do pass. Result: pass.Lower
- Jun 3Coauthors revised.
- Jun 3Re-referred to Com. on U. & E.Minor
- Jun 2From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.Major
- May 29Re-referred to Com. on U. & E. pursuant to Assembly Rule 77.2.Minor
- May 29Read third time and amended. Ordered to third reading. (Page 1789.)Major
- May 27Read second time. Ordered to third reading.Minor
- May 23Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Lower
- May 23From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (May 23).Major
- May 23Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)
- May 14In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- May 1From committee: Do pass and re-refer to Com. on APPR. (Ayes 18. Noes 0.) (April 30). Re-referred to Com. on APPR.Minor
- Apr 30
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 23In committee: Set, first hearing. Hearing canceled at the request of author.
- Apr 22Re-referred to Com. on U. & E.Minor
- Apr 21From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.Major
- Mar 3Referred to Com. on U. & E.Minor
- Feb 20From printer. May be heard in committee March 22.
- Feb 19Read first time. To print.Introduced