"We find that the continuation of the existing Board will hamper the ability of the CAISO to implement the CAISO’s market redesign proposal, and thus this Commission’s ability to ensure non-discriminatory transmission services and just and reasonable rates in the West.This is because the State-controlled Governing Board of the CAISO (Board) is not capable of operating its interstate transmission facilities on a non-discriminatory basis. The Board continues to be in non-compliance with our December 15, 2000 order, establishing remedies for the California electricity markets, and Order No. 888, governing independent system operators.
[snip]
Because of these problems with the current Board, we direct the CAISO, following the procedures discussed below, to adopt a two-tier form of governance by January 1, 2003. The top tier will consist of an independent, non-stakeholder Board, while the lower tier will consist of an advisory committee (or committees) of stakeholders, which may recommend options to the Board, and an advisory committee of the California Electricity Oversight Board (Oversight Board), which will serve as the state of California's (State) and its agencies' representative in advising the Board. The top tier will have sole decision-making authority in all matters.
FERC just fired Gray Davis's hand-picked board!