AB 2368: System reliability and outages.

Existing law requires the Independent System Operator to ensure the efficient use and reliable operation of the transmission grid, as provided.

This bill would authorize the Independent System Operator to amend its tariff, as deemed necessary and subject to approval by the Federal Energy Regulatory Commission, to be consistent with the efficient use and reliable operation of the transmission grid.

Existing law requires the Independent System Operator to perform a review following a major outage that affects at least 10% of customers of the entity providing the local distribution service, as provided.

This bill would require the Independent System Operator, if it finds that the primary cause of the outage was the insufficiency of the available electricity supply, to post the finding and recommendations to prevent future shortfalls on its internet website and share the finding and recommendations with the Public Utilities Commission (PUC), the State Energy Resources Conservation and Development Commission, and the Legislature.

Existing law requires the PUC, in consultation with the Independent System Operator, to establish resource adequacy requirements for all load-serving entities and requires the PUC in establishing those requirements to ensure the reliability of electrical service in California. Existing law requires the PUC to determine and authorize the most efficient and equitable means of achieving certain objectives.

This bill would require that the resource adequacy program consider mitigation measures, if the commission determines they are needed, to reduce costs to ratepayers. The bill would require the PUC to determine and authorize the most efficient and equitable means of ensuring that the resource adequacy program can reasonably maintain a standard measure of reliability and use it for planning purposes.

Existing law requires the PUC to ensure that load-serving entities ensure system and local reliability and require sufficient, predictable resource procurement and development to avoid unplanned energy supply shortfalls, as provided.

This bill would require the PUC, as part of the integrated planning process, to assess short-term, midterm, and long-term reliability by conducting specified modeling. The bill would require the PUC to review the results, as specified.

Under the Public Utilities Act, a violation of an order, decision, rule, direction, demand, or requirement of the PUC is a crime.

Because a violation of a PUC action implementing certain provisions of this bill 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.