California power grid operators released a nearly 700-page report Tuesday that said expanding the transmission system into a regional asset would save consumers up to $1.5 billion, create thousands of new jobs and promote the development of renewable energy.

The study issued by the nonprofit California Independent System Operator, or Cal-ISO, said connecting the grid to six or more Western states also would help the environment by reducing carbon emissions in coming years.

“We think this regional market will provide a platform for renewables to flourish,” said Keith Casey, a vice president for Cal-ISO, which manages about 80 percent of the the state’s transmission lines.

The report, produced by a team of more than 30 researchers, economists and energy consultants, was required by a state law passed last year that required grid operators to study the prospect of regionalizing the transmission network.


The study found the regional grid would reduce carbon emissions in California by up to 5 million metric tons by 2030, or 8 to 10 percent of the state’s total electricity sector emissions. The Western region would see reductions of up to 11 million metric tons by 2030, an 8 to 10 percent reduction, the study said.

The cost savings would come from reduced purchasing costs and other efficiencies, the study said

Cal-ISO spent $2 million through March 31 on consultants to review the grid expansion. Several of the firms that produced the study also work for utility companies.

The report does not answer questions that lawmakers, consumer advocates and others have sought in the interest of making educated decisions about whether expanding the grid is a good idea.


For example, there is no explanation for who would be in charge of the regional entity. Right now, the governor appoints members of the Cal-ISO board, making them accountable to an elected leader.

Cal-ISO said it was close to finishing a revised set of governing documents and would release the plan as soon as next week.

“That’s still a work in progress,” Cal-ISO Executive Director Stephen Berberich told reporters on a conference call Tuesday. “We’re reviewing comments and revising the proposal.”

Grid operators also have yet to formalize transmission charges across the network.


One of the key benefits of regionalizing the system would be to create a uniform transmission charge, Cal-ISO said, but architects have yet to agree on its structure.

“As new entities consider joining, we’ll have to sort out how we deal with transmission costs,” Berberich said. “That’s a work in progress too.”

Last week, the California Municipal Utilities Association wrote a letter raising questions about the merits of the expansion and the haste in which it is being considered.

“CMUA has repeatedly emphasized its position that the pace of this process could prevent an adequate and transparent analysis of complex issues,” wrote Michael Bell, the association’s interim chief executive.


Supporters of the regional grid, including Gov. Jerry Brown, say the plan will help California reach or even exceed its goal of generating at least 50 percent of the energy it consumes from renewable sources like wind and solar power.

Critics point out that PacifiCorp, the for-profit company based in Oregon that Cal-ISO would partner with, generates most of its electricity from coal and gas.

Jamie Court of Consumer Watchdog said he was surprised the 688-page study did not include any review of what could go wrong — like when a deregulation bill adopted by lawmakers in the 1990s led to widespread price-manipulations and huge spikes in power bills.

“It feels like we’re in a flashback to 2000 and 2001,” he said. “All the same forces are at work getting us to roll the dice in order to pump up investor profits and take it from ratepayers’ wallets.”


The California system operator also has been accused of withholding critical information about the project and criticized for requiring participants to sign non-disclosure agreements before reviewing expansion data.

The Imperial Irrigation District supplies water and power to thousands of homes and businesses in the Imperial Valley and parts of Riverside and San Diego counties.

Two weeks ago, the district filed a lawsuit accusing Cal-ISO of failing to comply with the California Public Records Act and turn over documents related to the proposal.

The complaint filed in Sacramento County Superior Court asks a judge to order Cal-ISO to release more details about the plan or show cause why the information should remain private.


“There is a history of (Cal-ISO) market traders using market power to set prices,” the complaint alleges.

The system operator has scheduled a workshop for July 26 in Sacramento to further discuss plans to regionalize the state transmission grid. Officials from the Public Utilities Commission, Air Resources Board and Energy Commission will also attend.