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Passage of Assembly Bill 825 enables the ISO to implement Pathways Step 2.

Assembly Bill 825 and ISO reporting requirements

AB 825

Assembly Bill 825, passed by the California Legislature and signed by Gov. Gavin Newsom in 2025, was a landmark achievement for the future of energy collaboration and innovation across the Western United States. By establishing the framework for independent governance of Western electricity markets, the bill enables the California ISO and the state’s electric utilities to work with the new independent Regional Organization for Western Energy (ROWE) to help ensure that California and the rest of the West have a reliable and affordable bulk electric system that benefits consumers throughout the region.

Gov. Newsom signs landmark legislation for independent governance of Western electricity markets

Governor Newsom’s signing of Assembly Bill 825 is a landmark achievement for the future of energy collaboration and innovation across the Western United States. He, along with the California Legislature and the broad coalition of supporters, have recognized the importance of making this crucial next step toward independent governance of Western electricity markets. Now that AB 825 is signed into law, the ISO will work closely with partners across California and the rest of the region to ensure a more reliable and affordable bulk electric system for the benefit of consumers throughout the West.

AB 825 created several reporting requirements for the ISO

Annual Report 

  • The ISO must publish a report on February 1 of each year that contains the following elements:
  1. Any changes sought, and those approved, to the ISO’s tariff by the Federal Energy Regulatory Commission
  2. Status of policy initiatives and other recurring processes
  3. Actions undertaken by the ISO Board and, if applicable, the Board of the ROWE whose markets California entities participate in
  4. An assessment of energy market activity by an independent market monitor
  5. Actions undertaken within the transmission planning process

Jobs Study

The ISO must conduct a study of the impacts of implementing AB 825 on “the creation or retention of jobs in California” and it must specifically include “the impact on jobs constructing and maintaining powerplants in California.” This one-time study must be completed by December 31, 2026.

The ISO has retained BEAR Consulting to conduct this analysis. For more information, including opportunities for public engagement, see our initiative page.

Compliance Report

Beginning one year after the implementation of the transfer of governance to the ROWE, the ISO must submit a report to the California Public Utilities Commission, California Energy Commission, and the energy committees of the Senate and the Assembly that reports on “the status of the development and compliance” with the core section of AB 825 that pertains to the transfer of market governance to the ROWE.