The West-Wide Governance Pathways Initiative is preparing to file the incorporation documents for the independent “regional organization” (RO) that will govern CAISO’s energy markets, while funding challenges remain.
The committee plans to file the incorporation documents for the RO in early 2026 under the proposed name Regional Organization for Western Energy (ROWE). The RO will be incorporated as a Delaware non-stock corporation and will qualify as a public benefit corporation, Evie Kahl, chief policy officer at California Community Choice Association and Pathways Launch Committee member, said during a committee meeting Aug. 29.
Kahl also presented the draft bylaws, which detail the policies that will guide the RO and future committees such as advisory, public policy and audit and finance committees.
The Launch Committee, consisting of members from several Western states, was formed with the task of establishing an independent RO to oversee CAISO’s Western Energy Imbalance Market (WEIM) and Extended Day-Ahead Market (EDAM) in an effort to expand energy markets. (See Pathways Initiative Approves ‘Step 2’ Plan, Wins $1M in Federal Funding.)
The draft bylaws specify that the “independent governance shall be provided to and for entities and persons operating within the markets, consumers and affected stakeholders while acting in the public interest, and after consideration of consumer interests and the policies of all participating states.”
The bylaws also go into the public interest functions of the RO. For example, the RO will establish a public policy committee to engage with states, local authorities, federal power marketing administrations and advocacy organizations about potential impacts of policy initiatives.
Additionally, state authority “has been something that’s been important all along,” Kahl said.
“We’re developing a regional organization, so we need to make sure that we don’t trample the rights of the states in the process,” Kahl added.
Specifically, the draft bylaws state, “the board shall consistently acknowledge and, where practicable, develop tariff changes, rules or business practices that respect and accommodate participating states’ achievement of state or local policy objectives, including procurement, resource adequacy, environment, reliability and other consumer interests.”
“The board likewise shall minimize any adverse impacts of revisions to its tariff, rules, and business practices on participating states’ policy objectives,” according to the draft bylaws.
Meanwhile, the committee has enough money in the bank to cover expenses through the end of 2025, according to Jim Shetler, general manager of the Balancing Authority of Northern California and co-chair of the committee’s Priority Administrative Work Group.
The initiative needs roughly $2 million for 2026 and about $4.8 million for 2027.
“To date, we have basically gone through pledges and donations to try to fund this effort,” Shetler said. “We acknowledge that $7 million is going to be tough to do that way, but we’re going to at least start there.”
The work group has issued an updated pledge form and a draft funding agreement to solicit additional funding, Shetler explained. The work group also is considering debt financing as an option, Shetler said.
The group, which has estimated a $7.1 million budget for all three of its phases, hit a financing snare early in 2025 when the Trump administration paused nearly $1 million in funding as part of a larger spending freeze on projects previously promised support by the Biden administration. (See Pathways Initiative Seeks $7.1M to Fund RO.)
“Bottom line is, pledge form should be ready here in the next month, and we will be coming out and soliciting funding,” Shetler said. “We’re setting this up where people could fund over time. We’re not necessarily asking for a full commitment Day 1. But we do need to get some funding in place starting in January of next year in order to support the 2026 budget.”
