Volts California warms up to a larger Western energy market
Dec 10, 2025
Join Brian Turner, a regulatory expert in Western energy governance, and Kathleen Staks, a leader advocating for a larger Western grid. They discuss the newly authorized Regional Organization for Western Energy, which aims to unify the western U.S. grid while respecting state independence. Topics include the transition to a full day-ahead market, the voluntary 'à la carte' structure of the new grid, and strategies to accommodate diverse state energy policies. Their insights reveal the complexities and potential impact of this significant energy reform.
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Real-Time Market Proved The Case
- The Western Energy Imbalance Market (real-time market) started around 2012 and delivered large benefits across the West.
- It now covers ~80% of western demand and has produced roughly $8 billion in value, proving incremental markets work.
Governance Detached From Operations
- The new Regional Organization (ROW) will hold governance authority while CAISO continues operating market software and operations under contract.
- That separates rule-making from operations to ease political concerns about California control.
Three-Step Incremental Pathway
- Pathways unfolds in three steps: shared governance, exclusive first-instance rule authority, then optional expansion into other services.
- The model is intentionally incremental and voluntary to build trust among diverse Western utilities.