CA SB1277

Independent System Operator (ISO) prohibited from submitting proposals to the Federal Energy Regulatory Commission for new electricity or capacity procurement auctions or market mechanisms unless it first obtains formal concurrence from the Public Utilities Commission (PUC).

If FERC approves a mechanism, ISO cannot propose or endorse modifications to it without first obtaining PUC formal concurrence.

PUC may only formally concur if it reasonably concludes the proposal will not diminish state principles regarding renewable resources, demand response, energy efficiency, electric storage, greenhouse gas emissions reduction, local reliability development, and procurement authority.

PUC may not formally concur if the proposal would preempt or frustrate state law or policy related to environmentally preferred resources, emissions reductions, local reliability, procurement requirements, or just and reasonable retail rates.

Requires PUC to issue decisions on ISO proposals through formal rulemaking proceedings under Section 1701.1 of the Public Utilities Code.