CAISO EDAM Launches May 1: How the Western Day-Ahead Market Reshapes Commercial Energy
The Extended Day-Ahead Market (EDAM) — CAISO's most ambitious market expansion in a decade — goes live on May 1, 2026. PacifiCorp and CAISO have already begun parallel operations in February to ensure a smooth transition. Building on the Western Energy Imbalance Market (WEIM), which has delivered $5.6 billion in cumulative benefits since 2014, EDAM extends real-time optimization to the day-ahead timeframe across the Western Interconnection. For commercial energy buyers in the West, this means better price discovery, reduced renewable curtailment, and access to a larger, more diverse resource pool when scheduling energy 24 hours in advance.
From Real-Time to Day-Ahead: Why EDAM Matters
The Western Energy Imbalance Market (WEIM) revolutionized real-time energy trading across the West. But it had a limitation: it only optimized energy in 5-15 minute intervals, after day-ahead schedules were already locked in. This meant utilities were scheduling most of their energy a day ahead using bilateral contracts and internal resources, then relying on WEIM to balance residual differences in real-time.
EDAM changes this paradigm. By extending market optimization to the day-ahead timeframe, participating balancing authorities can tap into a much larger pool of resources when making their next-day scheduling decisions. The result: more efficient use of renewable generation (especially California solar that currently gets curtailed when supply exceeds local demand), better resource sharing across time zones, and reduced reliance on expensive real-time balancing.
Parallel Operations: The February Proving Ground
In February 2026, PacifiCorp — which serves customers across Oregon, Washington, Utah, Wyoming, and Idaho — began running parallel operations with CAISO. Their market systems, staff, and operational processes are now operating side-by-side with the existing CAISO day-ahead market. This isn't just a software test; it's a full operational readiness exercise.
Meanwhile, CAISO held a virtual town hall on February 4, hosted stakeholder meetings on February 23 and 27 focused on Phase 2 of the EDAM Congestion Revenue Allocation, and is preparing tariff revisions for FERC submission in Q1 2026. Every signal points to an on-schedule May 1 launch.
⚡ Expert Insight — KilowattLogic Research
"EDAM is the most significant structural change to western energy markets since WEIM launched in 2014. For commercial buyers with facilities in PacifiCorp, PGE, or SMUD territories, the immediate impact is subtle — slightly better price discovery and potentially lower day-ahead energy costs. But the long-term play is enormous: as more balancing authorities join, the savings compound. If you're negotiating a multi-year supply contract in the West right now, push for index-based pricing tied to CAISO hubs rather than bilateral fixed-price — you'll capture the EDAM efficiency gains as they materialize."
Who's In, Who's Next?
| Entity | Status | Territory | Est. Timeline |
|---|---|---|---|
| CAISO | ✓ Founding | California | May 1, 2026 |
| PacifiCorp | ✓ Parallel Ops | OR, WA, UT, WY, ID | May 1, 2026 |
| Portland General Electric | Committed | Oregon | 2026 |
| SMUD | Intent Expressed | Sacramento, CA | 2026-2027 |
| BANC | Intent Expressed | Northern California | 2026-2027 |
Source: CAISO EDAM stakeholder materials, Feb 2026. Additional participants may announce throughout 2026-2027.
Governance: The AB 825 Factor
One of the most politically sensitive aspects of EDAM is governance. Critics have long argued that a California-headquartered ISO shouldn't control a market spanning 10+ western states. California's Assembly Bill 825 addresses this by enabling a transition to a new independent regional organization for Western energy markets.
The February town hall featured extensive discussion of governance evolution, with CAISO leadership emphasizing that "CAISO governance continues to evolve with EDAM's broadening reach." For commercial buyers, the governance question matters because it determines market rules, cost allocation, and transmission planning — all of which directly impact your energy costs.
EDAM vs. SPP's Markets+ : The Western Market Race
EDAM isn't the only western day-ahead market in development. The Southwest Power Pool (SPP) has been developing "Markets+," a competing day-ahead market framework. While EDAM builds on CAISO's existing infrastructure and the WEIM's proven performance, Markets+ offers an alternative governance structure that some utilities — particularly those wary of CAISO's California-centric policies — find attractive.
For commercial buyers, the key question is which market your utility participates in, as this determines your price reference points and the resource pool available to serve your load. The February CAISO blog post on "seams" directly addressed the challenges of operating two parallel day-ahead markets in the West and the potential for inefficient trade at their boundaries.
Commercial Buyer Playbook
If you're served by PacifiCorp, PGE, or SMUD, you'll be among the first to benefit. Check whether your utility has committed to EDAM or Markets+.
As EDAM matures, day-ahead CAISO hub prices will become more representative of regional costs. Index-based contracts allow you to capture efficiency gains automatically.
EDAM will create congestion revenue rights similar to eastern ISOs. If your facilities are in areas with systematic price differentials, these instruments can become hedging tools.
California currently curtails 2-4 GWh of solar daily during spring peaks. EDAM allows this surplus to flow to neighboring states, reducing curtailment and lowering overall system costs.
Bottom Line
EDAM is the Western equivalent of what PJM and MISO have had for decades — a centralized day-ahead energy market that optimizes resource dispatch across a wide geographic area. Its launch on May 1 is the culmination of over a decade of incremental market integration, starting with WEIM in 2014. For commercial buyers, the near-term impact is modest but positive. The real value compounds as more participants join and the market's geographic diversity grows. Position your procurement strategy now to capture those gains.
Sources: CAISO EDAM stakeholder meeting materials (Feb 23 & 27, 2026), PacifiCorp parallel operations announcement, CAISO Virtual Town Hall (Feb 4, 2026), CAISO Energy Matters Blog, RTO Insider, AB 825 legislative text. WEIM savings data from CAISO quarterly benefits reports. Participant status current as of February 25, 2026.