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 Bill Text - AB-825 Independent System Operator: independent regional organization.

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 |Add To My Favorites |Track Bill | Version: 09/19/25 - Chaptered
 09/13/25 - Enrolled
 09/10/25 - Amended Senate
 06/02/25 - Amended Assembly
 05/29/25 - Amended Assembly
 05/23/25 - Amended Assembly
 04/21/25 - Amended Assembly
 02/19/25 - Introduced

 AB-825 Independent System Operator: independent regional organization.(2025-2026)

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 Date Published: 09/22/2025 10:00 AM

AB825:v92#DOCUMENTBill Start

 Assembly Bill

 No. 825

 CHAPTER 116

An act to amend Section 337 of, to add Sections 345.1, 345.2, 345.6, and 399.16.5 to, to repeal
 Section 352 of, and to repeal Article 4 (commencing with Section 355), Article 5 (commencing with Section 359), and Article 5.5 (commencing with Section 359.5) of Chapter 2.3 of Part 1 of Division 1 of, the Public Utilities Code, relating to electricity.

 [
 Approved by

 Governor
 September 19, 2025.

 Filed with

 Secretary of State
 September 19, 2025.
 ]

LEGISLATIVE COUNSEL'S DIGEST

AB 825, Petrie-Norris.
 Independent System Operator: independent regional organization.

(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.

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, c