California Independent
System Operator

December 5, 1997	                 Contact:  Patrick Dorinson
           	Cal-ISO Communications Director
	           (916) 351-2179

CAL-ISO CAMPAIGNS TO KEEP OVERSIGHT BOARD
Files Request for Rehearing with FERC

      (Folsom, CA)  The California Independent System Operator (Cal-ISO) is calling on the Federal Energy Regulatory Commission (FERC) to reconsider its directive eliminating the Cal-ISO Oversight Board.  In a Request for a Rehearing filed Monday, December 1, 1997, the Cal-ISO reminded FERC the role of the Oversight Board is mandated by state law and written into the independent corporation’s articles of incorporation and that deleting it would force the Cal-ISO into noncompliance with state statutes and its own charter. 
     The Commission has in effect directed the Cal-ISO not to comply with the requirements of Assembly Bill 1890, California’s landmark electricity restructuring legislation.  Any attempt by the Cal-ISO to amend its bylaws in conflict with AB 1890, without approval of the Oversight Board, would raise significant legal issues, the Cal-ISO noted in its pleading.  Consequently, it argued, an uncertain legal status would likely cast a dark cloud over Cal-ISO’s efforts to seek lower-cost permanent financing.
     “It is in the public’s best interest to get this issue resolved quickly,” said Cal-ISO Board of Governors Chair Jan Smutney-Jones.  “This is a classic case of being between a rock and a hard place.  Any changes to our bylaws must be approved by the Oversight Board, but how can the bylaws be amended if the Oversight Board is abolished?” 

California Independent
System Operator

FERC REQUEST-2-2-2

      Ideally, the Cal-ISO noted to the Commission, the State of California would  resolve its issues informally with the Commission.  If that is not possible, the Cal-ISO is asking that the issue be handed over to the U.S. Court of Appeals.  Absent court review, the Oversight Board cannot act, because the California State Constitution obligates state officials to enforce state statutes until an appellate court has ruled that federal law preempts state law.  In the meantime, the Cal-ISO is urging the Commission to stay the effectiveness of its October ruling pending resolution of the matter.
      The Cal-ISO will take over the statewide import and export of electrons next month when California ushers in a newly restructured electricity industry.  As the computerized command center for the bulk of the state’s power grid, the Cal-ISO will safeguard reliable delivery of electricity and ensure equal access for all companies competing in the new marketplace.

-ISO-

ISO-120597

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