Marybeth Collins
The Wyoming Energy Authority (WEA) has submitted comments to the
California Energy Commission (CEC) regarding proposed governance structures for the Western Energy Imbalance Market (WEIM) and the Extended Day Ahead Market (EDAM). The WEA, Wyoming’s energy office, is focused on ensuring that market rules and governance frameworks promote fairness, transparency, and independence while safeguarding the interests of all stakeholders in the
Western Interconnection.
Ensuring Equitable Market Governance
At the heart of WEA’s concerns is the formation of a new Regional Organization (RO) to oversee WEIM and EDAM. The WEA stresses the importance of establishing a governance structure free from undue influence, particularly from a single state or entity, to ensure a competitive and reliable electricity market. As a major electricity-exporting state, Wyoming plays a critical role in the Western power grid and seeks a system that supports affordable and dependable energy access for producers and consumers.
Concerns Over Market Design and Governance Structure
The WEA raises several key concerns:
- Independence of Market Governance: The proposal for shared staffing between the new RO and the California Independent System Operator (CAISO) could lead to conflicts of interest, potentially undermining the impartiality of market decisions. WEA advocates for a fully independent governance structure.
- Legislative Uncertainty: The California General Assembly is considering legislation to restructure CAISO’s board. While WEA acknowledges progress, it calls for a clear and transparent legislative framework to ensure that governance remains independent and free from political influence.
- Voting and Market Rule Transparency: WEA is concerned that the indicative voting system proposed for market decisions may not accurately represent the interests of all stakeholders, particularly states like Wyoming that are net electricity exporters. The organization urges greater transparency in the selection of governance committee members and more equitable representation in decision-making processes.
Wyoming’s Role in the Western Electricity Market
Wyoming is a key energy producer, supplying electricity across the West through a diverse energy portfolio, including coal, natural gas, wind, solar, and emerging nuclear technologies. As energy demand grows, WEA emphasizes that market structures must support reliability, economic growth, and investment in energy infrastructure while maintaining an even playing field for all participants.
