4 min read

NEWS CODEX: Changes to Cap-and-Invest; Critique of SOMAH Program; Possible EDAM Dysfunction

  • CAISO Expedites Congestion Revenue Rights Design Proposals: "CAISO's congestion revenue rights enhancements initiative is intended to address a longstanding complaint by the ISO's Department of Market Monitoring about the impact of CRR payments on electricity ratepayers." RTO INSIDER
  • CAISO Monitor Warns of "Significant Dysfunction" in EDAM Due to Potential Self-Scheduling: "DMM’s report comes after CAISO staff published a report in April that found the new CRA design is not expected to present material concerns under likely transfer situations when EDAM opened with PacifiCorp." RTO INSIDER
  • California Energy Commission Approves 3.2GWh BESS Project Through Newsom's Accelerated Permitting Scheme: "The project, in California’s Alameda County, will store excess solar generation or low-cost grid electricity during off-peak hours. Construction is expected to begin in May 2027, with the project going into operation around 18 months later." ENERGY STORAGE NEWS
  • California is Rethinking Nuclear – Environmental Groups Should Too: "Environmental groups don’t need to become nuclear power cheerleaders. But when Californians face rising electric bills, record heatwaves, and worsening wildfires, demanding they shut down a major source of the state’s carbon-free electricity is deeply out of touch." THE HILL
  • California Makes Controversial Change to Cap-and-Invest Program: "The California Air Resources Board...approved major changes to the state’s cap-and-invest program, including a controversial plan to allow polluting industries to earn free emissions allowances if they invest in decarbonizing their facilities — a move critics say could undermine California’s decarbonization goals." CANARY MEDIA
  • California Provides Free Solar for Farmworker Households: " In the case of SOMAH, the program is run so inefficiently that most poor families lose interest and cancel or withdraw. Neither program is reducing greenhouse gas emissions appreciably. And some poor folks find it hard to justify poking a hole in their roof for a small amount of benefit." INSTITUTE FOR ENERGY RESEARCH
  • Costly Blunder of Diablo Canyon Nuclear Plant: "Recent media has profiled studies and potential legislation floating around the capitol touting the extended operation of Diablo Canyon nuclear plant beyond 2030 as a panacea for the state’s future energy needs, but they are fueled by outdated sources and wishful thinking. More accurate and up-to-date analysis reveals Diablo Canyon to be that 1960s clunker best left up on blocks in the garage. Propping it up will only add to ratepayer woes and fatten PG&E’s already bloated pockets at a time when 'affordability' is the mantra du jour." SANTA BARBARA INDEPENDENT
  • Defying Trump, California Continues to Bet Big on Offshore Wind: "The proposed Pier Wind project at the Port of Long Beach is a 400-acre terminal for the positioning, storage and assembly of some of the world’s largest offshore wind turbines, which would be towed north to federal wind lease areas some 20 miles off Morro and Humboldt bays." LA TIMES
  • FERC Denies Complaint Against SCE for Limiting Battery Charging: "FERC's ruling appears to give Southern California Edison some latitude in how it serves battery storage customers under its tariff." RTO INSIDER
  • Inside Gavin Newsom's Solar Scam: "From the beginning, the SOMAH program has been plagued by delays and cancellations. More than 400 applications have wound up cancelled or withdrawn, or about a third of the total. On average, projects take three and a half years to make it through the program’s gauntlet of paperwork and inspections. Some projects have been fully installed—only to sit idle for a year or more waiting for permission to begin operating. As a result, more than $700 million of the program’s budget remains unspent. In other words, California can’t even give away a heavily subsidized, and sometimes free, product." CITY JOURNAL
  • Is it Time for a Price-Stabilizing Gas Tax? "The barriers to adopting a more rational gasoline tax policy are not economic or administrative, but political. It would require legislators to step out of their comfortable roles of hating gas taxes or (in some cases, and) arguing that we need higher prices on fossil fuel energy.  Regardless of where you think gas prices should be, you probably don’t think that wild gyrations are a good way to get there.  No state, not even the largest in the country, can really influence the world oil market, but we can help California households cope with the impacts." ENERGY AT HAAS
  • Massive SunZia Wind Project Starts Commercial Operation: "At least three California community choice aggregators have contracted to receive power from SunZia Wind. Silicon Valley Clean Energy has contracted for 125 MW of capacity from SunZia Wind. Central Coast Community Energy contracted for 205 MW of SunZia capacity and began receiving power on May 28. The wind energy is procured on behalf of all the CCA’s customers to help support clean energy goals, a 3CE spokesperson said. The Clean Power Alliance, which serves Los Angeles and Ventura counties, initially contracted for 575 MW of capacity, adding another 125 MW in September 2025 for a total of 700 MW." RTO INSIDER
  • Pioneering Grid Battery Nudges California Closer to 24/7 Clean Energy: "On June 1, the Tumbleweed project in California’s Kern County became the first major battery installation in the U.S. that can discharge power for up to eight hours at a time — twice as long as typical energy-storage facilities." CANARY MEDIA
  • Trump Administration in "Active Dialogue" on Strategic Petroleum Reserve in California: "A new reserve would come to a West Coast that has few pipelines connecting it to the rest of the country. But it likely would draw opposition from Newsom and other California lawmakers who have tried to reduce the state’s dependence on fossil fuels especially after multiple pipeline ruptures have sent oil washing up on California beaches over the past several decades." POLITICO
  • U.S. Grid Reliability Improves This Summer: "According to the Federal Energy Regulatory Commission, U.S. grid reliability will improve this summer as 75 gigawatts of capacity are being added to the grid, and power plant retirements are expected to slow by more than 50% to 8 gigawatts. The increase in capacity is the largest one-year increase in over a decade. With the added capacity, resources, and operating reserves are expected to be adequate in all NERC assessment areas under normal operating conditions." INSTITUTE FOR ENERGY RESEARCH