The California Independent System Operator grappled with a hefty agenda and major changes this week, which included the departure of board chair Michael Kahn and long-time member Mike Florio. Board chair Ken Wiseman also announced at the February 24 board meeting that the governor plans to appoint two new board members. On top of the changing of the guard, the board this week also tried to get its arms around a huge plan for market redesign and a potential investment plan that Kahn warned could turn into an Orange County?style financial fiasco. After departing member Kahn expressed fears that CAISO could be left holding an investment bag for others, the board deferred a vote on a new investment policy. The agency holds participants? money waiting on settlements. That money is expected to be invested?but where, and in how many accounts, is the question. However, there are no guarantees on that investment, noted Kahn. He expressed concern that the amounts are in millions?far above the federal insurance level?and if funds collapse, CAISO could be responsible. If so, fellow board members Ed Cazalet, Ken Wiseman, and Tim Gage ?would go to jail,? chided Kahn. He said he didn?t have to worry because his board tenure is over. The board also approved the major Palo Verde?Devers transmission line as well as an internal investigation following the discovery of a potential release of confidential data to an individual outside CAISO. The infraction was reported to the California attorney general and other state officials as well as the Federal Energy Regulatory Commission. CAISO was mum on the details, but according to the <i>L.A. Times<\/i>, generation data were provided to a former CAISO employee, now a consultant. The employee is on leave. The Palo Verde?Devers 500 kV line was approved as a cost-effective addition to the grid operator?s control area. CAISO directed Southern California Edison to proceed with permitting and construction. The CAISO staff noted that the line is relatively expensive. However, it will bring in cheaper energy from the Southwest and relieve expensive congestion, which staff estimate will reap $56 million in benefits.