In a marriage forged in acronym hell, the Los Angeles Board of Water and Power Commissioners has approved the Los Angeles Department of Water and Power (LADWP)’s participation in the California Independent System Operator (CAISO) Extended Day-Ahead Market (EDAM). LADWP is the largest municipal utility in the United States, serving more than 4 million residents and businesses.
The EDAM is a voluntary, wholesale energy market scheduled to launch in 2026 that is designed to optimize energy availability on existing transmission line infrastructure in the Western United States. Participation in EDAM will provide LADWP and the other utilities a preview of anticipated surplus energy days in advance, which will help mitigate renewable energy curtailments and greenhouse gas emissions. Simply put, there is strength in numbers.
Last month, the Balancing Authority of Northern California (BANC) became the third entity to sign a formal agreement to join the collective, aligning with PacifiCorp and Portland General Electric. BANC, a balancing authority consisting of six utilities, has been participating in the California ISO’s (CAISO) Western Energy Imbalance Market (WEIM) since 2019; LADWP joined in 2021. The EDAM builds on the track record of the WEIM. which automatically finds low-cost energy to serve consumer demand, especially during extended periods of heat or other extreme weather events. To date, the WEIM consists of 21 active participants outside of the CAISO, representing more than 80% of the Western Electricity Coordinating Council’s (WECC) total load.
LADWP chose to join EDAM to streamline the integration of renewable energy and assist the City of Los Angeles and the state of California in meeting their goal of achieving 100% clean energy by 2035 reliably and cost-effectively. Following the Board’s approval, LADWP is on track to officially enter CAISO’s EDAM in mid-2027.
“Joining the CAISO Extended Day-Ahead Market highlights yet another example of LADWP’s commitment to putting our customers first,” beamed Janisse Quinoñes, CEO and chief engineer of LADWP. “Entering into this voluntary market allows us to enhance operational flexibility and reliability and maximize the use of our assets.”
Like the WEIM, the EDAM will operate in real-time and offer broader visibility of transmission availability to its day-ahead market participants. LADWP will retain local control over its generation and transmission assets and its ratemaking authority, similar to its involvement in the WEIM. LADWP estimates a potential increase in net revenue from $20 million to $59 million annually based on the current analysis and depending on the final number of EDAM participants.
“This commitment underscores the importance of expanding market participation to enhance grid reliability and efficiency across the West,” added Elliot Mainzer, president and CEO of CAISO. “LADWP’s involvement will provide greater access and connectivity to diverse energy resources, building on the substantial economic, reliability, and environmental benefits we’ve already seen from the Western Energy Imbalance Market.”
Four other entities have signaled their intent to participate in EDAM this year- Idaho Power, NV Energy, BHE Montana, and PNM. Arizona G&T Cooperatives, utilities representing 70% of WAPA Desert Southwest’s load, also recently announced they are studying the benefits of joining EDAM. PacifiCorp and Portland have planned entries into the EDAM in 2026; BANC and LADWP will join in 2027.
