On Wednesdays Fridays We Join EDAM |
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Today, we wear pink and we join the newly launched Extended Day-Ahead Market! And if you're not on board with market expansion in the West, you can't sit with us. With today's EDAM launch and a continued dynamic landscape around the region, we're on the edge of our seats to see what happens next. Read on for the latest updates from across the West and what all this means for the future of Western energy markets.
Thanks, as always, for humoring us with these fun themes. Don't worry, we'll mix it up next month with a sports theme. If you have any newsletter theme suggestions, please reach out! - Leah Rubin Shen, Managing Director at Advanced Energy United
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Extended Day-Ahead Market Now Live |
Today, the California Independent System Operator (CAISO) officially launched the Extended Day-Ahead Market (EDAM) with PacifiCorp as its first participant, making it the first day-ahead market in the West! What an incredible achievement, and one that so many of us across the region worked so hard to make happen. You go, Glen Coco!
What began simply as a vision for stronger regional coordination is now a functioning market that will deliver real benefits for individual consumers, businesses, and utilities across the region. EDAM will help utilities better plan electricity needs, more efficiently share power across state lines, strengthen grid reliability, lower consumer costs, and better integrate advanced energy resources.
In an interview with Utility Dive, CAISO's CEO Elliot Mainzer said he expects a "very solid launch" after months of operations and testing, with a rapid response team in place to quickly address any issues as the market goes live. We're excited to watch and see how this plays out. In another interview, this time with RTO Insider, Mainzer emphasized the decades of experience from running the Energy Imbalance Market behind EDAM's design, highlighting how it builds on that long-standing regional coordination to deliver deeper day-ahead visibility, improved reliability, and more efficient operations across the West.
As a reminder—EDAM will also come under the governance of the ROWE in 2028, which will make it the largest day-ahead market in the West with independent governance.
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Southwest Power Pool (SPP)
Southwest Power Pool (SPP) has become the first RTO to operate across both the Eastern and Western Interconnections with the launch of its RTO West expansion on April 1. Participants in the new SPP West balancing authority have expanded the market's footprint into Arizona, Colorado, and Utah, with additional participants also being added from Montana, Nebraska, New Mexico, and Wyoming.
Regional Organization for Western Energy (ROWE) -
Resource Adequacy Stakeholder Process Kicks Off: Utilities outside the CAISO balancing authority that are part of, or plan to join, EDAM have developed an initial proposal to create a resource adequacy program. This would be the first new program that the ROWE takes on, which is part of the vision we outlined in our recent report. If you are interested in helping develop the program or participating in the discussions around it, there are a series of workshops throughout May. More information can be found here.
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Pathways Finalizes Role Specifications for ROWE Board: The Pathways Initiative, with the help of Lyceum, has finalized the role specifications for the inaugural ROWE board. Qualifications include experience in regulatory proceedings, system operations, wholesale energy markets, multi-jurisdictional executive leadership in the electric sector, financial and institutional stewardship in complex energy organizations, and end-use consumer and customer experience. The ROWE maintains the goal of seating its first permanent board in the fall.
- ROWE Funding Approved: The Western Energy Markets Governing Body and the CAISO Board of Governors approved the cost allocation methodology and final proposal for ROWE start-up costs at their meetings this week. This enables the ROWE to move forward with a loan, co-signed by the CAISO, to fund early implementation activities, including seating and paying the board and initial staff.
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ROWE Office of Public Participation (OPP) Update: The scope of work for the ROWE’s Office of Public Participation has been posted for review and comment, with comments due by May 8.
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WEIM Benefits Continue to Increase: The WEIM added $382 million in benefits in Q1, bringing a cumulative value of more than $8.2 billion since 2014. How fetch.
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Updates Around the Region |
Pacific Northwest
She doesn't even go here! Bonneville Power Administration's (BPA) draft decision to move forward with SPP Markets+ continues to spark debate among advocates who most recently questioned whether BPA is doing its due diligence in revisiting joining EDAM in light of evolving governance concerns getting addressed and whether it has adequately accessed the impacts of leaving the WEIM. In comments submitted to BPA, stakeholders urge the agency to more clearly address concerns before solidifying a path to join Markets+.
In other BPA news, Chief Administrative Officer Robin Furrer has been appointed acting administrator, effective today. Furrer will serve in the role until a permanent administrator is selected by the U.S. Department of Energy.
Colorado
Raise your hand if you've ever felt personally victimized by coal plants staying online! Tri-State and several rural co-ops in Colorado have joined SPP RTO West, as of April 1. With SPP now operating much of Colorado's grid, the market operator's influence is already being felt in the energy resources being used. SPP issued a resource advisory in early April due to load uncertainty, increased potential for low output from certain resources ahead of peak hours, and possible resource outages. As a result, SPP asked Tri-State to fire up Unit 1 of the Craig coal plant, which had been scheduled to close at the end of 2025. Boo.
Nevada
Earlier this month, the PUCN approved NV Energy's proposal to join EDAM. However, Nevada state law requires NV Energy to join a full RTO by 2030, and the utility is now weighing whether to ask the PUCN to waive or postpone the RTO requirement by Jan. 1, 2027. In filed comments, my colleague Brian noted that if NV Energy requests to postpone the RTO mandate, the commission should require an explanation of how the company ultimately will join an RTO, along with regular progress reports.
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