California Clean Energy Business Representatives, Environmental Advocates, and Community Choice Aggregators express support for the West-Wide Governance Pathways Initiative Step 2 Proposal
Today, the West-Wide Governance Pathways Launch Committee voted to approve the final version of its Step 2 Proposal issued in mid-November. Step 2 proposes establishing a new, independent Regional Organization (RO) to oversee Western energy markets. The RO will provide fully independent governance for the Western Energy Imbalance Market and Extended Day-Ahead Market, while CAISO will remain the market operator.
This vote comes just after the U.S. Department of Energy’s Grid Deployment Office announced $1 million in funding to the West-Wide Governance Pathways Initiative, reinforcing that this proposal is tangible, well-supported, and backed by funding that will support efforts to advance Western wholesale electricity markets.
Clean energy business representatives, Community Choice Aggregators, and environmental advocates provided the following statements in support of the Step 2 proposal.
“The Pathways Launch Committee has worked hard to ensure that all stakeholders have a seat at the table, state interests are preserved, and the reliability and cost-saving benefits of sharing resources across the West can be fully leveraged,” said Leah Rubin Shen, Managing Director at Advanced Energy United. “This proposal allows for a more dynamic market landscape that lets communities benefit from the broader regional grid by lowering costs, providing greater energy security, and facilitating the participation of local, customer-sited resources in the stakeholder process.”
“Energy affordability is a key issue for Silicon Valley Clean Energy (SVCE),” said Monica Padilla, CEO of Silicon Valley Clean Energy. “That's why we are pleased to see the advancement of Phase 2 of the regional energy markets proposal. Sharing resources with our partners in the West means more efficient use of our energy infrastructure investments and lower rates for everyone.'"
"The development of a regional organization will free up market access to more clean energy for our customers, increasing affordability and reliability of supply," said Dawn Weisz, CEO of Marin Clean Energy (MCE).
“The Pathways Initiative represents the most viable strategy to quickly decarbonize the Western grid in an affordable and reliable manner,” said Michael Colvin, Director of the California Energy Program at Environmental Defense Fund. “The Step 2 final proposal contains some of the strongest public interest and consumer protections in the United States."
“Leap appreciated the collaborative approach the Pathways Initiative took in developing its Step 2 proposal, and it is pleased to see that the final proposal included a sector for distributed energy resources (DER) technology companies on both the Nominating Committee and Stakeholder Representatives Committee,” said Collin Smith, Regulatory Affairs Manager at Leap. “By ensuring that DER companies are represented in these venues, the Pathways Initiative has taken a key step in enabling the future regional power market to maximize the value that distributed, clean virtual power plant technologies can provide.”
"The establishment of a Distributed Energy Resources (DER) sector exemplifies the proposal's commitment to a fair balance of interests and underscores the vital role DERs play in energy markets,” said Elysia Vannoy, Regulatory Affairs Manager at Renew Home. “We look forward to participating in the stakeholder processes of a future independent regional organization."
“The Pathways Step 2 proposal is a pragmatic, near-term step to integrate the grid under a uniquely Western structure that includes protections for the public interest,” said Victoria Rome, Senior Director of California Government Affairs at NRDC. “This puts a cleaner, more cost-effective energy future for the Western region well within our reach. It is also adaptable for additional services in the future, including a full Western Regional Transmission Organization.”
“The Pathways Initiative proposal is an innovative solution to a previously intractable problem. The proposal lays out a roadmap to completely independent governance of CAISO’s energy markets while preserving California control over all other elements of CAISO operations,” said Mark Specht, Western States Energy Manager and Senior Analyst for the Climate & Energy program at the Union of Concerned Scientists. “Most importantly, the proposal includes strong public interest protections and a robust stakeholder engagement process that, taken together, will help advance the West towards an affordable, reliable, and clean power grid.”
Click here to learn more about our work advocating for a West-wide RTO and learn more about the West-Wide Governance Pathways Initiative by clicking here.