Brown said he had instructed his staff and state agencies to continue working with CAISO and the other involved states to develop a strong governance proposal in the interim.
Evan Westrup, a spokesman in the California Governor's Press Office, said he could not elaborate on what questions Brown believes remain unanswered.
But Anne Gonzales, a public information officer for CAISO, said she thought the governor's actions may have been prompted by requests from stakeholders for more time to review and refine the governance proposal — the document that, if approved by the California Legislature, would define how the CAISO is to become a regional grid operator.
That's a key issue that could make or break Utah's participation in the grid. State leaders have voiced concerns that Utah may not benefit as greatly as California from the arrangement, and might lose some of its sovereignty if it gives the CAISO, which is currently led by a board of directors appointed by the California Governor and Legislature, authority over the distribution of electricity.
Utah lawmakers moved in an interim session last month to open a bill file for a law that would give the state Legislature the power to prevent Utah's participation on the grid, but the subsequent vote did not comply with interim rule voting requirements and the motion was not completed.
Utah does not have immediate authority to review California's proposal. The CAISO's regional operator agreement would be with PacifiCorp, which operates as Rocky Mountain Power in Utah. The utility company would have to obtain the approval of the Utah Public Service Commission — and from the equivalent bodies in each of the six states PacifiCorp serves — before entering into the agreement.
Rocky Mountain Power CEO Cindy Crane has said that the utility will not continue to pursue a regional arrangement with the CAISO unless all six of the states it serves approve the relationship.
In a statement, Rocky Mountain Power spokesman Paul Murphy said the company was unsurprised by the California governor's decision, and that the company appreciated having more time to work through key issues.
"This is a case where getting it right is more important than getting it fast," he said. "We continue to believe grid integration has significant potential benefits for customers. ... Going forward, regional governance remains the key issue that will need to be resolved in order to advance this important initiative."
Gonzales said the CAISO was pleased to have more time to fine-tune its vision for regional governance.
"[The] only way it's going to work is if everyone feels like they have a voice and a seat at the table," she said. "What we are hearing, over and over, is, 'We don't have time to digest this. We need more time to understand this.' "
But part of the reason why the CAISO was pushing for an August hearing before the California Legislature, she said, was that the nonprofit wanted to give PacifiCorp adequate time to pitch the finalized proposal to its service-area states.
"We are trying to get things moving," Gonzales said. "And they still are moving, so we are pleased that the governor wants to continue working on this early next year."
The CAISO also has in mind the deadlines placed upon it by California's SB350, which requires the system operator to complete its governance proposal by the end of 2017 in order to have the regional agreement in place by 2020, Gonzales said.
And, she said, the CAISO was concerned about other Western entities that are organizing themselves and pursuing regional systems of their own.