Press Release: California amends law to join its neighbors in a large Western-based energy market

The new structure for oversight of the market addresses the Bonneville Power Administration’s primary concern when it chose to join a smaller energy market 

Sept. 12, 2025

NW Energy Coalition applauds the passage of California Assembly Bill 825, which enables the transfer of oversight of a large Western-based energy market to a new, independent organization governed solely by Western interests.  

Regional energy markets allow utilities and energy authorities to buy and sell electricity across a wider area, which lowers costs for consumers, provides more access to renewable energy sources, and ensures a stable and reliable energy supply. This legislation allows the California-based market operator to join an independent, West-wide organization with responsibility for market oversight. This broad-based governance model will further facilitate a robust, diverse energy market, meaning a more secure and affordable energy future for the Northwest, with lower utility costs for customers, fewer blackouts, and cleaner air. 

This legislation comes on the heels of Bonneville Power Administration recently announcing its intention to join Markets+, a small disconnected day-ahead market proposed for the West. Meanwhile, other utilities have been pursuing the Extended Day-Ahead Market (EDAM) that builds upon existing structures covering about 80 percent of electricity in the West and is bolstered by this legislation. According to BPA’s own data, by joining the EDAM instead of Markets+, BPA could save its customers $400 million in excess power costs each year in the near term, accumulating to more than $4 billion by 2035. Unfortunately, BPA prioritized market governance concerns over its obligation to provide low-cost, reliable, and clean power to the region—a decision that raises even more concern now that AB 825 has passed.

BPA argued that EDAM could be biased towards California interests because it is overseen by the California Independent System Operator. AB 825, which was in the works as BPA was making its decision, fundamentally changes this structure by enabling the transfer of oversight of the regional market to a new entity, the Regional Organization for Western Markets, which will be governed solely by a broad array of Western interests.

By amending its laws, California has addressed the primary concern cited by the Bonneville Power Administration (BPA) when it chose Markets+. While BPA preemptively discounted the importance of passage of this legislation in its decision, the magnitude of this development puts additional scrutiny on BPA’s reasoning and the weight it put on governance.

“This legislation is a fundamental change to the governance of EDAM and makes BPA’s choice to prioritize joining Markets+ over reducing energy costs for the region even more questionable,” said Ben Otto of the NW Energy Coalition. “We continue to urge BPA to reassess its decision, particularly in light of this fundamental change to the market options. BPA can still change course and choose the better energy market for Northwest customers.”

BPA controls the vast majority of the transmission lines in the Northwest and supplies about one-third of the power in the region. As a result, BPA’s choice of which energy market to join will have profound impacts on everyone in the region for decades to come. 

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