Transmission Market Expansion Implementation Risk

Definition

CAISO is launching Extended Day-Ahead Market (EDAM) in 2026 and SPP plans Markets+ initiative in 2027 (pending FERC tariff approval). These major wholesale market expansions create operational and financial risk for utilities operating across multiple markets. Trading teams must rapidly develop new bidding strategies, hedging approaches, and market monitoring capabilities. Integration of new markets increases complexity for a utility's operations center, requiring new software, training, and organizational structure. SPP expansion depends on FERC approval that is not guaranteed, creating multi-year uncertainty for utilities planning participation. EDAM implementation in 2026 will require substantial IT investment and business process redesign within 12 months. Market expansion rules and software details are still evolving, preventing final system design for utilities. Operations directors must manage dual-market operations (old and new market simultaneously) during transition periods, increasing operational risk and staffing requirements.

Why This Matters

Wholesale electricity market bidding optimization and strategy software, market participation consulting for emerging markets, FERC tariff and market rules tracking platforms, energy trading desk training and development, market integration project management services

Affected Stakeholders

General Manager / Operations Director, Chief Financial Officer / Finance Manager

Related Business Risks