Who manages California's Electricity Transmission System?

Power is delivered from generating facilities over the utilities’ transmission lines and distribution wires. The Independent System Operator (ISO), whose governing board is appointed by the Governor, manages most of California’s transmission system. Its primary function is to balance electricity supply with demand and maintain adequate reserves to meet the needs of California homes and businesses. The Federal Energy Regulatory Commission (FERC) regulates the ISO. The California Electricity Oversight Board monitors and reports on the activities of the ISO.

The ISO declares emergencies when power reserves fall below certain levels.

· A Stage 1 Emergency is called when operating reserves are expected to fall below seven percent.

· A Stage 2 Emergency is called when reserves are expected to dip below five percent. Stage 2 emergencies allow the utilities to interrupt, if necessary, the service of customers, who have agreed to an interruptible service in exchange for reduced rates. These are mostly large industrial users.

· A Stage 3 Emergency is declared when reserves are expected to go below 1.5 percent, and can result in rotating outages. If rolling blackouts are necessary, the utilities interrupt service for certain blocks of customers for approximately 60 to 90 minutes, restore service, and move on to the next customer block (if necessary). Rolling blackouts can affect residential and small commercial customers, as well as large customers.

During the energy crisis, ISO declared the following emergencies:

· In the year 2000 - Stage 1: 55; Stage 2: 36; Stage 3: 1

· Through July 3, 2001 - Stage 1: 70; Stage 2: 65; Stage 3: 38