Bonneville Considers Switching from Southwest Power Pool's Markets+ to CAISO’s EDAM
The Bonneville Power Administration (BPA) is reconsidering its decision to join the Southwest Power Pool's Markets+, and may instead opt for participation in California Independent System Operator's Extended Day-Ahead Market (EDAM). In a letter, BPA Administrator Travis Kavulla outlined three key evaluation criteria: market rule durability, liquidity depth, and seam impacts on reliability. A draft decision is expected by year-end. BPA supplies about one-third of the Northwest’s electricity from 22.5 GW in federal hydroelectric resources across multiple states. The agency already participates in CAISO's Western Energy Imbalance Market (EIM). While Markets+ was initially seen as a better fit due to governance and resource adequacy, Kavulla highlighted potential inefficiencies like transmission capacity withdrawal. EDAM offers greater market depth—39 GW average net generation versus 19 GW for Markets+. Governance changes since BPA's initial decision include the formation of the Regional Organization for Western Energy (ROWE) and California law reforms to support EDAM governance. Kavulla emphasized the need for independent board leadership, stakeholder-driven processes, and protection from unilateral state actions.
Topics: Bonneville Power Administration CAISO EDAM market transition Markets+ Southwest Power Pool