In a continued effort to enhance reliability and economic benefits to customers, Public Service Company of New Mexico (PNM), a wholly-owned subsidiary of TXNM Energy (NYSE: TXNM), has announced its plan to join the California Independent System Operator (CAISO) Extended Day-Ahead Market (EDAM).
EDAM is a voluntary day-ahead regional market, expanding on CAISO's real-time regional market known as the Western Energy Imbalance Market (WEIM), which PNM has been a participant of since 2021.
"Participating in EDAM is the next step in realizing the value of New Mexico's renewable energy potential for our customers, helping us ensure continued clean and reliable service at the lowest possible cost," said Don Tarry, PNM President and CEO. "We know from our experience with the WEIM – which has provided New Mexico customers nearly $125 million in benefits since we joined in 2021 – coordination with other regional utilities can deliver substantial efficiencies and cost benefits for our customers." EDAM is expected to provide $20 million in annual benefits to New Mexico customers.
Both the day-ahead and real-time markets are designed to deliver significant reliability, economic, and environmental benefits to customers throughout the Western United States. This is done by using the resources across the west and increasing coordination between utilities. While EDAM is scheduled to launch in 2026, PNM hopes to begin participation as early as 2027.
PNM's decision comes after the New Mexico Public Regulation Commission (NMPRC) issued a statement of policy and guiding market principles for regional market participation based on a series of inquiries and workshops this year to discuss potential participation by New Mexico utilities in a day-ahead regional market, including a presentation from The Brattle Group.
"We are honored that Public Service Company of New Mexico has announced its intent to join EDAM," said Elliot Mainzer, CAISO President and CEO. "We look forward to building on the proven track record of the Western Energy Imbalance Market to deliver even greater economic and reliability benefits to PNM customers."
