LOS ANGELES (December 17, 2024) — The Los Angeles Board of Water and Power Commissioners recently approved the Los Angeles Department of Water and Power’s (LADWP) participation in the California Independent System Operator (CAISO) Extended Day-Ahead Market (EDAM), a voluntary, wholesale energy market designed to optimize the availability of energy on existing transmission line infrastructure in the Western United States. Participation in EDAM will provide LADWP and other utilities a preview of anticipated surplus energy days in advance, which will help mitigate renewable energy curtailments and greenhouse gas emissions.
The EDAM builds on the success of CAISO’s Western Energy Imbalance Market (WEIM), another existing wholesale energy market, which automatically finds low-cost energy to serve consumer demand, especially during extended periods of heat or other extreme weather events. This decision by LADWP to join EDAM was made to streamline the integration of renewable energy and assist the City of Los Angeles and the state in meeting their continued efforts to achieve 100 percent clean energy by 2035 in a reliable and cost-effective manner. Following the Board’s approval, LADWP is on track to officially enter the market in mid-2027.
“Joining the CAISO Extended Day-Ahead Market highlights yet another example of LADWP’s commitment to putting our customers first,” said Janisse Quinoñes, CEO and Chief Engineer of LADWP. “Entering into this voluntary market allows us to enhance operational flexibility and reliability, maximize the use of our assets, while maintaining our vertically integrated structure that has allowed us to be a leader in clean energy and affordability.”
“We are thrilled to see the Los Angeles Department of Water and Power, the largest municipal power utility in the United States, formally commit to the Extended Day Ahead Market,” said Elliot Mainzer, President and CEO of CAISO. “This commitment underscores the importance of expanding market participation to enhance grid reliability and efficiency across the West. LADWP’s involvement will provide greater access and connectivity to diverse energy resources, building on the substantial economic, reliability, and environmental benefits we’ve already seen from the Western Energy Imbalance Market.”
As an active WEIM participant since 2021, LADWP has provided excess energy to other participating utilities as well as purchased surplus, low-cost energy, enhancing grid reliability and cost efficiency. As the WEIM operates in real time, the EDAM complements it by offering broader visibility of transmission availability to its day-ahead market participants. Additionally, LADWP will retain local control over its generation and transmission assets, as well as its ratemaking authority, similar to its involvement in the WEIM.
“As an active EDAM participant, LADWP estimates a potential increase in net revenue from $20 million to $59 million annually based on the current analysis and depending on the final number of EDAM participants,” said Ann Santilli, LADWP’s Chief Financial Officer. “The majority of the projected increased revenue is expected to result from savings in adjusted production and operation costs.”
To date, the WEIM consists of 21 active participants outside of the CAISO, representing more than 80 percent of the Western Electricity Coordinating Council’s (WECC) total load and 4 entities have signaled their intent to participate in EDAM just this year (Idaho Power, NV Energy, BHE Montana, and PNM). PacifiCorp and Portland have planned entries into the EDAM in 2026, while the Balancing Authority of Northern California (BANC) also plans to join in 2027.
Joining both energy wholesale markets not only has the potential to strengthen LADWP’s grid resilience and enhances service for our customers but also brings significant benefits in terms of reliability of other regional utilities and their customers, extending the positive impact of our participation beyond our own service territory.
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