Impact Stories

New regional energy organization to create new opportunities for advanced energy in the Western U.S. 

Expansion of energy trading across the West will lower costs, support the growth of renewable energy

The Problem

For too long, the West’s electricity system has been fragmented, preventing the region from fully realizing the benefits of a unified power grid, such as shared resources and coordinated operations.

Breaking down silos and building up a new regional grid operator would be a win-win for both consumers and the advanced energy industry. An important feature of wholesale energy markets is that they prioritize the use of least-cost dispatchable and demand-side resources. Now that advanced energy technologies–like solar, wind, and energy storage–have become the lowest cost options, the development of a West-wide electricity grid would ensure that not only are consumers getting greater access to cheaper electricity, but the advanced energy industry would have greater opportunity to provide their services to a wider market.

But creating a West-wide grid is complicated. Debate over governance and control, and cynicism about whether all stakeholders had the same goals, stifled progress.

Despite skepticism, Advanced Energy United forged ahead, knowing the work would be worth the outcome. Today, we’re proud to say there is real progress towards the vision of a truly unified electric grid in the West.

The Solution

If California was going to give up some control, it needed to know its neighboring states shared its vision of how to build a more reliable and affordable energy future. Since 2018, Advanced Energy United has been engaging decisionmakers in multiple states, on both sides of the aisle, to build an understanding of the potential benefits of an independent Western energy market and an electric grid powered by advanced energy. As part of that mission, we commissioned state-by-state economic analyses that were endorsed by sitting Governors and utilized by decisionmakers. We even produced a podcast series!

Collectively, our efforts helped to connect the concept of a Western market to enhanced reliability and affordability, which resonated with both decision-makers and the media. In 2021, bills were signed by both Nevada Governor Sisolak and Colorado Governor Polis to require utilities in those states to join a regional transmission organization (RTO) by 2030.

Finally, we had momentum.

In 2022, we brought the conversation back to California, ultimately securing a resolution to have CAISO study western regionalization, and we used it to create a broad coalition of support and to build understanding of what was happening in the West around market formation.

What followed was a movement to build a truly independent Western power market: the Pathways Initiative.

The Result

The Pathways Initiative is bringing together stakeholders across the West: lawmakers, utilities, industry stakeholders, labor interests, public power, environmental NGOs, large consumers, and others are at the table, constructing the framework of a West-wide grid organization.

By bringing together the right collection of stakeholders, and creating buy-in from across the region, we helped solve the questions of governance that previously held this effort back. In September 2025, AB 825, known as the Pathways bill, passed the California Legislature with near-unanimous support and was signed into law by the Governor. The bill opens the door to allow California to join an independent West-wide grid.

The West is now closer than ever to a unified energy grid. Today, we’re helping shape the new Regional Organization for Western Energy (ROWE), with Advanced Energy United taking part in the Launch Committee.

This milestone moment was a testament to what’s possible when an industry association like Advanced Energy United, with its big-tent approach to technologies, is persistent and dogged in its goals. We’re grateful this issue got so much engagement across our membership and technology segments, and we’re looking forward to working alongside our members, partners, and stakeholders to realize this opportunity into a new era for the advanced energy industry in the West.

Learn more about the benefits of a practical, uniquely Western-built pathway to a stronger regional grid on the United-created website, ByTheWest.org.

At A Glance

Our Role

For nearly a decade, Advanced Energy United worked to educate decision-makers, pass key legislation in Colorado and Nevada, and bring together bipartisan stakeholder coalitions to advance the development of an independent, West-wide power market.

The Impact

United’s efforts helped resolve long-standing governance barriers, secure landmark legislation enabling California to join a unified Western grid, and position the region to realize a more reliable, affordable, advanced-energy-powered future.
With the signing of AB 825, the Pathways Initiative can move forward with setting up a new independent organization to govern the markets. It’s the beginning of a new era, but just getting to this point is a testament to the perseverance and persistence of key industry leaders, and Advanced Energy United’s commitment to the vision
Leah Rubin Shen, Managing Director, Advanced Energy United