The West-Wide Governance Pathways Initiative soon will begin the nomination process to select the initial board of the independent regional organization (RO) that will govern CAISO’s energy markets, staff said during a Sept. 26 meeting a week after the California legislature approved a bill to implement the initiative’s plans.

California Gov. Gavin Newsom signed AB 825 into law on Sept. 19, allowing CAISO and investor-owned utilities to participate in the independent Regional Organization for Western Energy (ROWE), which is being designed by the Pathways Initiative to oversee CAISO’s Western Energy Imbalance Market and soon-to-be-launched Extended Day-Ahead Market. (See Newsom Signs Calif. Pathways Bill into Law.)

One goal is to remove what some see as a barrier to wider participation in CAISO markets by ensuring the markets are not governed solely by California, but rather by stakeholders from all Western states.

During the Sept. 26 meeting, Pathways Launch Committee Co-Chair Kathleen Staks reiterated statements she made earlier in the week that representatives from nine sectors will advise in nominating members to ROWE’s initial board. (See New Challenges Await Pathways After Success in Calif. Legislature and DER Representatives Get a Seat at the Pathways Table.)

The sectors include:

• • EDAM entities
  • WEIM entities
  • ISO participating transmission owners
  • Non-IOU load serving entities serving load from WEIM or EDAM
  • Public interest organizations
  • Independent power producers, independent transmission developers and marketers
  • Consumer advocates
  • Large commercial and industrial customers
  • Distributed energy resources

“The goal is to have that board selection process led by the nominating committee occur over the first six months of 2026, with a goal of seating that initial board in July of 2026,” Staks said.

The initiative’s Formation Committee also is reviewing feedback on ROWE’s proposed bylaws and policies. The committee plans to release revised bylaws in November. (See Pathways Initiative Unveils RO Proposed Name, Bylaws.)

Nine state utility commissioners and energy officials from five different states launched the Pathways Initiative in a July 2023 letter outlining their desire for increased coordination and expansion of electricity markets in the West. (See Regulators Propose New Independent Western RTO.)

In a follow-up letter published Sept. 26, regulators from Arizona, California, New Mexico, Oregon and Washington congratulated the Launch Committee.

“We write once more to appreciate your dedication to the vision we articulated and celebrate the milestones you have achieved,” the regulators wrote. “In particular, we note that pursuant to Pathways Step One, the Western Energy Markets Governing Body now holds primary filing rights for the tariff governing the energy imbalance and day-ahead markets. This approach incorporates customer protections across the market footprint. It also balances the needs of entities across the region to have transparency and certainty when committing to a day-ahead market.”

The regulators also touted the benefits of an independent Western market, saying customers could save over $7 billion.

“We are moving into an era of unprecedented growth in electrical demand, new weather extremes, challenges procuring new generation and cost pressures. Indeed, affordability and reliability are central concerns in all our states,” the regulators wrote. “This legislation provides a critical opportunity for us to address these issues, and we appreciate the time you have invested in realizing this critical milestone.”