The California ISO Board of Governors and the Western Energy Markets Governing Body on Nov. 7 approved the next legal steps to implement the West-Wide Governance Pathways Initiative Step 1, once the trigger based on formal commitments to participation in the Extended Day-Ahead Market is met, CAISO reported.
The West-Wide Governance Pathways Initiative was developed in 2023 to take steps to ensure the benefits of wholesale electricity markets continue to be maximized through a new governing organization, CAISO said.
The Pathways Launch Committee, comprised of a broad range of industry experts, developed its Step 1 proposal earlier this year. This proposal seeks to make near-term progress to further enhance the authorities of the WEM Governing Body to oversee the western markets without the need for changes to California law.
Over the last decade, the Western Energy Imbalance Market (WEIM) "has demonstrated the benefits of a regional coordinated electricity marketplace, providing economic benefits of more than $6.25 billion for its participants, along with significant reductions in greenhouse gas emissions," the grid operator said.
The EDAM is now poised to expand the efficiencies into the day-ahead timeframe, where the bulk of energy transactions occur and resource-sharing across many states can multiply the economic and environmental benefits, CAISO said.
On August 13, the ISO Board and the Western Energy Markets Governing Body unanimously approved the Pathways Step 1 proposal, seen as critical to building consensus for the EDAM.
The Nov. 7 joint decision by the Board and WEM Governing Body approves the changes to governance documents in support of the initiative, and allows staff to submit ISO tariff amendments to the Federal Energy Regulatory Commission for approval.
The revisions:
- Add refinements to the mission of the WEM Governing Body with regard to public interest and respecting state and local authorities;
- Change the process for approving tariff amendments to give the WEM Governing Body primary authority over sections of the tariff that apply to the WEIM or EDAM;
- Revise the dispute resolution to add a dual filing option to FERC if there’s an unresolved dispute between the ISO Board and the WEM Governing Body; and
- Allow the WEM Governing Body to start a governance review if a majority of EDAM participants announce plans to leave the market.
While most of the changes occur in the Charter for WEIM and EDAM governance, the approval also includes some more minor amendments to various corporate bylaws, decisional classifications, and the tariff.
The revisions are not expected to be effective until sometime in 2025, based on a “trigger” -- as approved in the Step 1 proposal -- of a certain amount of geographically diverse load committed to joining the EDAM.
The ISO is preparing these revisions in advance to allow time for a ruling from the FERC on the needed tariff amendment.
To date, five entities have informed the ISO of their interest in joining the EDAM, including PacifiCorp, Portland General Electric, Balancing Authority of Northern California, Los Angeles Department of Water and Power and BHE Montana.
Two additional entities, Idaho Power and NV Energy, have indicated that they are leaning toward EDAM as their preferred day-ahead market.
Arizona G&T Cooperatives, utilities representing 70% of WAPA Desert Southwest’s load, also recently announced they are studying the benefits of joining EDAM.
