Portland General Electric (PGE) has begun buying and selling energy through the California Independent System Operator’s (CAISO) Extended Day-Ahead Market (EDAM), following years of technology investments and regional collaboration.

PGE is among the first utilities to participate in EDAM, which allows participating utilities to buy and sell energy in the day-ahead timeframe. The company estimates that participation could save customers approximately $14 million annually once the market is fully built out by optimizing supply, demand and transmission across a broader geographic area. PGE also said EDAM participation is intended to support reliability and greater use of renewable energy.

“PGE has been long preparing for a reginal energy system that is dynamic and interconnected,” said Maria Pope, president and CEO of Portland General Electric. “Our early investments in advanced systems and operational capabilities as well as regional collaboration have positioned us to lead while staying focused on reliable service and affordability.”

PGE has been preparing for participation in EDAM through investments in technology, systems and operational capabilities at its Integrated Operations Center in Tualatin, Ore. The company joined the Western Energy Imbalance Market (WEIM) in 2017 and said it has generated approximately $377 million in cumulative benefits for customers through the market.

WEIM operates in real time at 15-minute and 5-minute intervals and has grown to include 24 participating entities serving nearly 80% of electricity demand in the West. PGE said the regional market provides a foundation for participation in the day-ahead market.

"PGE's participation in EDAM reflects the growing momentum behind regional market collaboration in the West," said Elliot Mainzer, president and CEO of the California ISO. "The addition of PGE expands resource diversity and strengthens the market's ability to deliver economic and reliability benefits to participants and their customers."

PGE's decision to join EDAM followed years of evaluating regional market options and participating in the market's design. Studies commissioned by PGE concluded that EDAM offered greater economic benefits than alternative market options.

EDAM also allows for more efficient use of energy resources across the West, including hydropower and wind generation from the Pacific Northwest and solar generation from California and the desert Southwest.