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FERC Greenlights CAISO’s New Extended Day-Ahead Market

Posted by Adam Winer on Dec 22, 2023

New market approval a significant development for the West, says Advanced Energy United

WASHINGTON, DC – The Federal Energy Regulatory Commission (FERC) approved the creation of a new extended day-ahead market (EDAM) by the California Independent System Operator (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. 

“EDAM has the potential to optimize the use of existing transmission and resources across a larger footprint in the West, which will provide economic and reliability benefits to participants,” the FERC order states. The market changes are scheduled to be fully operational in 2026, with critical coordination and system improvements occurring over the next two years. Already, the new market will connect PacifiCorp and CAISO, the two largest grid operators in the West.

The EDAM, which will be available to participants in the CAISO-run Western Energy Imbalance Market, brings a range of benefits — including improved grid reliability, renewables integration, and resource and transmission planning, Advanced Energy United director Brian Turner told Utility Dive in an interview this week. 

“With this approval, FERC is signaling that if the West works out a solution that works for the West, FERC will give that considerable deference,” said Turner. There’s an old saw in the western markets debate: Westerners want a market ‘for the West, by the West.’ EDAM shows it can be done.” 

EDAM's approval also adds more importance to the West-wide Governance Pathways Initiative. If the Pathways Initiative can lead to greater independent governance for the market, EDAM becomes an even more attractive value proposition to utilities, regulators, and ratepayers across the West, said Turner. 

 Utilities across the West are considering their positioning on markets intensively now, with many signaling an intent to move forward in the next six months, and EDAM having a fully developed, FERC-approved tariff makes it a very real option for utilities,” added Turner. 

You can read Advanced Energy United’s comments to FERC, which were quoted in FERC’s order, by clicking here. And learn more about the West-wide Governance Pathways Initiative, where Turner serves on the Launch Committee, by clicking here. Learn more about United’s work advocating for a West-wide RTO by clicking here.

Topics: Wholesale Markets, Press Releases, Western RTO, California, Brian Turner