The West-Wide Governance Pathways Initiative’s Launch Committee approved the bylaws and incorporation documents for the organization that will govern CAISO’s energy markets, in a step marking the “culmination of over two years of work,” according to the committee’s co-chairs.
The committee’s members voted unanimously Dec. 12 to approve the certificate of incorporation for the Regional Organization for Western Energy (ROWE). The committee plans to file the certificate in Delaware in January and register as a nonprofit with the IRS shortly thereafter.
The IRS filing will include ROWE’s three-year budget, business plan and conflicts of interest summaries, along with the newly approved bylaws.
“With today’s vote, the Pathways Initiative Launch Committee has adopted the official incorporation documents for the new [ROWE], creating a foundation that includes the critical public interest focus and independent structure included in the Pathways Final Proposal,” Launch Committee co-chairs Pam Sporborg, of Portland General Electric, and Kathleen Staks, of Western Freedom, said in a joint statement.
“This vote also represents the culmination of over two years of work by committed volunteers and stakeholders who served on the Launch Committee or contributed input and insights throughout the process, and we are so grateful for the hours and support,” the co-chairs said.
ROWE will be the product of California Assembly Bill 825, which implements the Pathways Initiative’s “Step 2” plan to create an independent organization to oversee CAISO’s Western Energy Imbalance Market and soon-to-be-launched Extended Day-Ahead Market — and authorizes the ISO and California’s investor-owned utilities to join ROWE. (See Newsom Signs Calif. Pathways Bill into Law.)
One goal in establishing ROWE was to remove what some see as a barrier to wider participation in CAISO-run markets by ensuring they are not governed solely by officials and stakeholders in California.
Pathways’ Formation Committee is in the process of hiring an executive search firm to vet candidates to seat ROWE’s initial five-member board in July. (See Pathways Initiative Exploring Funding Options, Issues RFP to Staff ROWE.)
The board selection is an important step in giving ROWE independent oversight, especially in negotiations with CAISO over tariff modifications to shift responsibility of the markets to the organization, Staks noted during the Dec. 12 meeting.
“That initial board gives us and … the new regional organization that independent oversight,” Staks said. “It gives its own identity, and it creates that truly independent entity for the negotiations for all of these various work streams that will enable us to fully implement the Pathways proposal.”
The goal is to file the tariff with FERC by the end of 2027, according to presentation slides.
The launch committee is also working on transitioning CAISO’s Regional Issues Forum into the Pathways Initiative’s Stakeholder Representatives Committee, which will provide advisory support to ROWE’s board, Staks noted. (See Pathways Co-chair Maps out ‘Enhanced’ Stakeholder Process for Western Markets.)
Funding continues to be a focus for Pathways with the launch committee seeking $7 million to $8 million in start-up costs for ROWE. The costs are associated with the executive search firm, initial board members and staff members, and legal support, Staks said.
The committee is exploring funding primarily through stakeholder contributions, grants and debt financing.
Some stakeholders have already signed pledge forms to contribute to the initiative, according to Staks.
“We are also having some conversations with some foundations about some philanthropic support for this work and are optimistic that we will see some grants to support a portion of our funding gap as well,” Staks said. “And then, we are pursuing some debt financing options that we’re hoping to have in place sometime next year to cover those remaining gaps that will get us where we need to be by the time we get our … ongoing funding through the tariff, hopefully in early 2028.”
