In a significant step toward modernizing how it purchases and manages power, the Imperial Irrigation District Board of Directors has approved a $24 million budget amendment to advance preparations for joining two key Western electricity markets -- the Energy Imbalance Market and the Extended Day-Ahead Market, IID said on May 20.
“The move positions IID to become the first utility to pursue concurrent participation in both markets, operated by the California Independent System Operator (CAISO), which could translate into millions in annual savings and greater operational flexibility,” the California public power utility said.
“For many years, the cost of buying energy on the open market has increased exponentially, which has been painful for everyone,” said IID Board Chairwoman Gina Dockstader. “This step allows us to modernize our systems while maintaining our independence as a balancing authority—and most importantly, protect our customers.”
The EIM allows for electricity to be traded every five and 15 minutes, offering quicker response times than IID’s current hourly trading model. EDAM, meanwhile, enhances planning and procurement efficiency in the day-ahead window, where most energy transactions are made.
With implementation targeted for 2028 -- pending final agreements with CAISO -- Phase III of the project will involve substantial upgrades to IID’s control infrastructure, telecommunications, metering, and energy management systems. The approved budget amendment funds this next phase.
“For years, we’ve been working to find ways to shield our customers from rising energy procurement costs,” said IID Vice Chairman JB Hamby. “This decision reflects a forward-looking strategy to reduce long-term costs and enhance system reliability.”
A conservative estimate pegs annual savings at $12 million once both markets are fully in use.
The board’s action this week follows a three-year evaluation process. It began in 2022 with an economic assessment (Phase I), followed by a gap analysis completed in 2023 (Phase II), both of which confirmed significant operational and financial benefits to market participation.
If successful, IID’s dual-market entry will not only reduce customer costs but also align the district more closely with emerging regional energy practices—without compromising local control.
