CALIFORNIA ISO MARKET NOTICE

Requested Client Action:  Mark Your Calendar

 

Date of Distribution:  April 5, 2007

 

Categories:  Legal/ Regulatory

 

Subject:  Compliance with NERC Reliability Standards

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Summary:  The CAISO is convening a legal working group to address joint compliance responsibilities and obligations under the TOP Reliability Standards and to develop delegation agreements and/or other indicia of understanding as to overlapping tasks and responsibilities.  A conference call has been scheduled for April 10, 2007 to discuss the formation of this group.

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Main Text: The North American Electric Reliability Council (NERC) mandatory reliability standards will become effective on June 4, 2007.  Within the California ISO’s (CAISO) balancing authority area, there are several entities (including the CAISO) that are registered as Transmission Operators (TOPs) pursuant to the NERC Functional Model.  NERC Reliability Standards TOP-001 through TOP-008 contain duties and responsibilities that could be viewed as equally applicable to all of the entities registered as Transmission Operators.  Therefore, in order to clarify responsibilities, the Transmission Operators desire to enter into delegation agreements to identify each party’s duties.

 

Furthermore, beginning on the effective date, the Reliability Standards will carry monetary penalties for non-compliance that also could be viewed as being applicable to all jointly registered Transmission Operators, or applicable to entities with responsibility for operating in accordance with the TOP Reliability Standards even if not registered as a Transmission Operator.  Thus, the affected parties also wish to enter into delegation agreements to identify who will bear the financial responsibility of such monetary penalties.

 

The CAISO is convening a legal working group to address joint compliance responsibilities and obligations under the TOP Reliability Standards and to develop delegation agreements and/or other indicia of understanding as to overlapping tasks and responsibilities.

 

An initial conference call for legal representatives of entities registered (or may be registered) as Transmission Operators, or entities operating transmission facilities within the CAISO’s balancing authority area, is scheduled for April 10, 2007 at 3:00 p.m. PDT.  All representatives interested in participating in the call should contact Judi Sanders (916-608-7143; jsanders@caiso.com) for further information.

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For More Information Contact:  Judi Sanders (916-608-7143; jsanders@caiso.com)

 

 

 

The California ISO strives to be a world-class electric transmission organization built around a globally recognized and inspired team providing cost-effective and reliable service, well-balanced energy market mechanisms, and high-quality information for the benefit of our customers.

 

EA/ComPR/IPS/ds