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Officials briefed on EDAM; staff warned of new balancing, settlement and penalty rules
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Summary
A consultant outlined the extended day‑ahead market (EDAM) and its likely effects on Los Alamos operations: direct CAISO billing, resource efficiency evaluations (higher effective load and penalties for deficiencies), nodal pricing and congestion revenue implications, and potential software/metering and staffing needs ahead of PNM/EDAM timelines in 2026–2027.
Jordan Garcia briefed the Los Alamos Department of Public Utilities board on the extended day‑ahead market (EDAM), explaining how the regional market will change trading, settlements and operational responsibilities for local utilities.
Garcia said EDAM builds on the Western Energy Imbalance Market and is designed to optimize resources across balancing areas, taking variable energy resources into account and extending the day‑ahead optimization window. He said several large parties have filed tariffs with FERC and that implementation for various entities is expected in 2026–2028. "EDAM will be required to participate Los Alamos will be required to participate in the EDAM market, with PNM's entry," Garcia said.
The nut graf: EDAM changes include direct settlement with CAISO instead of pass‑throughs via PNM, nodal locational marginal pricing with congestion and loss components, and a resource efficiency evaluation (RSE) that raises the effective scheduled load (load plus imbalance reserves plus ancillary services). Garcia warned that failing to meet RSE requirements will result in penalties and that local load‑serving entities must come in balanced on a day‑ahead basis.
Board members asked about local operational impacts. Garcia said e‑tags, outage notifications and many hourly operational functions persist but the front and back office will need new interfaces and possibly specialized software (e.g., automated generator controls). "You will be settling directly with CAISO," he said, noting that day‑to‑day workload will change in nature and that Los Alamos may choose to outsource some settlement and specialized tasks.
On environmental accounting, Garcia described optional adders bidders can include to buy green attributes and said variable energy resources often bid at or below zero because of tax incentives; market design does permit accounting for environmental attributes in bids.
Staff told the board they are in active discussions with PNM and expect to shape a local implementation plan once PNM publishes its business terms; staff estimated a roughly one‑year window to develop a solid internal plan tied to external implementation schedules and local resource additions.
The briefing closed with board questions about administrative costs, transmission congestion risks, and timeline. No formal action was taken; the item was informational. Board members requested follow‑up details about anticipated penalties, software needs and staffing options before the next major planning milestone.
