Regional Grid Operator and Governance

On October 7, 2015, Governor Brown signed Senate Bill 350 (SB 350), the Clean Energy and Pollution Reduction Act of 2015 (De León, Chapter 547, Statutes of 2015). The statute states the intent of the Legislature to provide for the evolution of the California Independent System Operator (California ISO) into a regional organization to promote the development of regional electricity markets in the western states. Such regional electricity markets may provide significant economic and environmental benefits, which will be explored in other forums pursuant to SB 350. This evolution could occur through additional transmission owners joining the ISO with any necessary approvals from their own state or local regulatory authorities. Such expansion of the California ISO will require that its current bylaws and corporate governance structure be amended and that the new structure be approved by the California Legislature.

Regional Grid Operator and Governance Workshops

The California Energy Commission is hosting a series of workshops on considerations for the development of a governance structure for a regional grid operator. The purpose of the workshops is to provide public discussions of modifications to California ISO’s governance that would be needed to facilitate the transition to a regional organization, while protecting California’s environmental and energy policies.

On May 6, 2016, the Energy Commission and Governor’s Office held a workshop to begin the dialogue on regional grid operator governance. In June 2016, two parallel workshops were held to present a draft governance proposal and expand the discussion to stakeholders both inside and outside of California. On July 26, 2016, the Energy Commission, California Air Resources Board, and California Public Utilities Commission jointly hosted a workshop to consider revisions to the draft governance proposal and the results of recent regional market expansion studies. On August 8, 2016, Governor Brown issued letters directing his staff and the agencies "to continue working with the Legislature, the ISO, interested parties and other state and energy regulators…to develop a strong proposal that the Legislature can consider in January."

The intent of upcoming workshops is to provide an update on progress toward this early 2017 goal, present revisions to the draft governance proposal, and seek stakeholder feedback. The Regional Grid Operator Governance proposal, workshop presentations, and public comments can be found under the links within the Proceeding Information box to the right.



For questions, please contact:
Al Alvarado
California Energy Commission
Phone: 916-654-4749
E-mail: Al.Alvarado@energy.ca.gov

News media or question, please call: Media & Public Communications Office - 916-654-4989.

Proceeding Information

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