Western Markets

The Launch Committee for the West-Wide Governance Pathways Initiative released Step 2 of its Straw Proposal, which proposes to establish a new, independent Regional Organization (RO) to govern existing regional energy markets, as well as potentially provide additional market services in the future. Clean energy industry representatives provided the following statements on the proposal, which will also help advance efforts to build a Western RTO.

The California Independent System Operator (CAISO) approved the first step of the West-Wide Governance Pathways Initiative’s straw proposal. Step 1 of the straw proposal increases the independence of the existing CAISO real-time and day-ahead markets’ governance by providing more autonomy to the existing Western Energy Market Governing Body.

Canary Media covers recent developments, potential benefits, and regulatory hurdles related to the creation of a regional Western RTO. The story quotes United’s Brian Turner, who highlights the importance of establishing a cohesive energy market in the West. 

Today, national business association Advanced Energy United applauds NV Energy’s signal of intent to join the California Independent System Operator’s (CAISO) extended day-ahead market (EDAM), recognizing the several benefits of joining a unified regional electricity market in the West. NV Energy becomes the sixth market participant to indicate it intends to join EDAM.

Western regional electricity market progress continues to be made as the West-Wide Governance Pathways Initiative Launch Committee released a straw proposal that outlines a plan to establish an independent entity to oversee Western markets. Clean energy industry representatives from Advanced Energy United, Pattern Energy, and Enel North America applauded the proposal, which will help advance efforts to build a regional transmission organization (RTO) in the West.

FERC approved the creation of a new extended day-ahead market (EDAM) by CAISO, a significant development for the region. As CAISO notes in its news release, FERC’s action represents a major advance toward greater coordination of Western electricity markets. 

Commissioners from Arizona, California, New Mexico, Oregon, and Washington sent a letter to the leadership of the Western Interstate Energy Board and the Committee on Regional Electric Power Cooperation outlining their intent to work collectively toward a West-wide Regional Transmission Organization (RTO).

This report quantifies the economic benefits that might accrue to 11 Western states from a broad, West-wide organized electricity market known as regional transmission organization (RTO).